California --Sales and Use Tax: Interest and Penalty Guidance Revised (April 17th, 2006)
California State Board of Equalization (SBE) guidance regarding interest and penalties is revised to include a discussion of the consequences of failing to participate in the amnesty program for sales and use tax liabilities for tax reporting periods that started before January 1, 2003, and the effect of Ch. 398 (A.B. 911), Laws 2005. A.B. 911 deleted the provision that prevented a taxpayer from obtaining a refund of the 50% interest penalty after it had been paid by a taxpayer who did not participate in the amnesty program. In addition, a taxpayer may be able to request reconsideration of a denial of relief from a penalty by providing new information to be considered by the SBE representative that sent the denial letter.
SBE Publication 75, Interest and Penalties, California State Board of Equalization, March 1, 2006
Source: CCH Incorporated
S&U Tax: Taxpayers Reminded of Lower EFT Threshold Taxpayers are reminded that if they have an average monthly California sales and use tax liability of $10,000 or more, they will be required to remit tax through electronic funds transfer (EFT) starting January 1, 2006. Details about Ch. 74 (A.B. 139), Laws 2005, which lowered the threshold for mandatory EFT filing from the previous level of $20,000 monthly, were reported in a previous story. Retailers subject to the new EFT requirement must authorize an electronic transfer of funds and will no longer be able to submit payment through paper checks. Voluntary participation in the EFT program is still an option for those with an average monthly sales tax liability of less than $10,000. (News Release, No. 83-G, California State Board of Equalization, December 28, 2005.
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