Use taxpayers can take advantage of California’s Voluntary Disclosure Program that kicked off on January 1.

California purchasers who have a use tax liability with the state, but who are not required to hold a seller’s permit may qualify for a three (3) year statute of by which the State Board of Equalization can assess prior taxes. Also included in the deal is a waiver of late filing and late payment penalties.

To qualify for the program, a business or person must meet all of the following criteria:

1. be resident in California and not have previously registered with the Board of Equalization;
2. has not filed an individual use tax return with the Board;
3. has not reported use tax on your individual income tax return with the Franchise Tax Board;
4. is not engaged in business in California as a retailer;
5. hasn’t been contacted by the Board of Equalization for failure to report use tax;
6. voluntarily comes forward to the Board; and
7. the purchase is not for aircraft, vessels, or vehicles.

If interested in participating in the program, the following forms must be completed:

1. BOE-38-1, Application for In-State Voluntary Disclosure;
2. BOE-735, Request for Relief from Penalty; and
3. BOE-400-CSU, California Consumer Use Tax Account Application

If you would like additional information on this topic or have any questions, please contact the taxdesk@thesaltgroup.com