Taxpayer rec’d a noted from CA Dept of Tax and Fee Admin stating that it has rec’d information from the CA Dept of Food and Agriculture that the taxpayer received tangible personal property through interstate commerce and stating that the CDTFA is trying to determine if the taxpayers made any purchases subject to sales and use tax from out of state vendors. The notice goes on to state that Business Owners are to complete the Business Questionnaire that is attached and individuals are to go online and complete a questionnaire.
Is this letter legitimate? What sort of reporting is being done by the CDFA. The taxpayer is a self-employed consultant (no tangible goods being sold), so we aren’t sure how this notice even got triggered.
“we aren’t sure how this notice even got triggered.”
I read somewhere that at the California agricultural checkpoints (on major routes into the state, such as I-80 in Truckee), they inspect delivery trucks and if they see large items, such as appliances, being delivered to CA address they will log it for use tax followup.