Use tax letters arriving

The BOE is sending letters to businesses with at least $100,000 in business gross receipts who are not already registered with BOE and do not hold a seller's permit. This means all businesses, regardless of business type (including tax practices), must register.

The letters state that the BOE has identified these businesses as qualified purchasers subject to a use tax return filing requirement (even if no use tax is due). Businesses that receive the letter must complete the contact info and mail it to the BOE. The BOE will then register the business and send them an account number and log-in information so that they can e-file their returns. The 2009 returns are due April 15, 2010.

Taxpayers who did not report use tax for 2007 and 2008 must file returns to report and pay that tax. We believe this is the first step in an audit process that will continue indefinitely.

Spidell is working on a worksheet for clients to track use tax liabilities and a checklist for practitioners to easily get needed information. We will have the practice aids prepared and available at Spidell's Fall Tax Update Seminar. Register now at a location convenient to you. You may want to attend in November or December to prepare for the onslaught of requests from your clients.