A recent law change requires many businesses that do not currently hold a seller's permit to register with the the Board of Equalization (BOE) and report and pay, by April 15, 2010, any use tax due from purchases made in the preceding year. To facilitate this, the BOE is sending requests for use tax returns and will send account and login information in early March 2010. This information will be sent to all individuals and business entities that reported more than $100,000 in gross receipts from a business or a rental property on their 2007 federal return. A return must be filed even if no use tax is due.
The 2009 use tax return is due by April 15, 2010 for the 2009 year. Tax returns must be filed for 2007 and 2008 as well. The BOE will automatically assess a late payment penalty for the 2007 and 2008 returns. However, the penalty will normally be abated for taxpayers who voluntarily file and pay any required tax. While not mandatory, the BOE prefers that all returns be e-filed.

If we can assist you or provide guidance in the preparation of your return, please contact us.

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  DZH Phillips LLP is one of the leading public accounting and strategic consulting firms in the San Francisco Bay Area.  We provide the long-term relationships, industry expertise, and clear and consistent service our clients need to make the right decisions today and in the future.  

• To ensure compliance with requirements imposed by the IRS, we inform you that any tax advice contained herein (including any enclosures or attachments) was not intended or written to be used, and cannot be used, by the taxpayer for the purpose of avoiding any penalties that may be imposed under the Internal Revenue Code or applicable state or local law provisions.