California Reminds Use Tax Registrants of April Deadline

The California State Board of Equalization (BOE) has notified more than 180,000 taxpayers that they are required to register with the BOE under a new law in order to report and pay their use tax liability for purchases subject to use tax for the previous calendar year. On April 1, 2010 the BOE issued a news release reminding taxpayers required to register, to a file a return and remit the use tax due directly to the BOE on or before April 15, 2010. However, at its March Board Meeting, the Board directed staff to make it clear to taxpayers that they may request relief from penalty or an extension. In response, forms for both requests have been placed on the home page of the BOE website and other locations for the taxpayer, including form BOE-735, Request for Relief of Penalty.

The new registration requirement applies to taxpayers operating service businesses that are either an individual, partnership, corporation, or other business entity that meets all of the following conditions: 1) the business receives at least $100,000 in gross receipts from business operations, both in-state and out-of state, per calendar year; 2) the business is not required to hold a seller’s permit or certificate of registration for use tax; 3) the business is not a holder of a use tax direct payment permit; and 4) the business is not otherwise registered with the BOE to report use tax.

Qualified purchasers who have not received a letter from the BOE are still obligated to comply with the new law and register and file use tax returns by April 15. Following registration, taxpayers will be furnished with their account number and express login code. Taxpayers registering in BOE field offices can immediately file their returns at efiling kiosks in each office. Three payment options are available while efiling: 1) electronic payment through ACH Debit (eCheck); 2) Credit Card; or 3) Paper Check. Additional rules and regulations apply. (News Release 41-10-Y, California State Board of Equalization, April 1, 2010)

Posted on April 8, 2010