Los Angeles CDTFA Tax Audit Lawyers
Tailored Strategies for Tax Audits
The California Department of Tax and Fee Administration (CDTFA) administers various taxes and fees across California, including those related to cannabis. CDTFA oversees various tax programs, including sales and use taxes, and special taxes and fees. Specifically concerning cannabis, CDTFA is responsible for the collection and regulation of cannabis taxes, ensuring compliance within the industry.
Tax audits conducted by the CDTFA are initiated when the agency suspects that a business has understated its reported sales and most recently when cannabis is discovered as a result of a criminal investigation. The CDTFA attempts to collect cannabis excise tax related to any cannabis discovered or believed to have been grown or sold as a result of their investigations. These audits are crucial for maintaining tax integrity and fairness across the board and have escalated due to the proliferation of the black market.
At Shevin Law Group, we understand the complexities and challenges that individuals and businesses face, particularly in navigating tax audits. With our firm's extensive experience and insights into cannabis law, we are at the forefront of the industry and have successfully defended CDTFA and related audits numerous times. Our team serves individuals and businesses throughout California, providing comprehensive legal support across all aspects of cannabis taxation. We protect our clients during tax audits, offering personalized strategies tailored to their needs and circumstances.
Contact our Los Angeles CDTFA tax audits attorneys at (818) 918-5838 and learn more about how we provide support through this complex process.
Cannabis Excise Tax Obligations for Retailers
Excise taxes are levied on the sale of specific goods or services, often imposed at the point of sale or production. In the cannabis industry, retailers must report and remit cannabis excise tax to the CDTFA. This tax serves as a crucial source of revenue for the state and is earmarked for various public services and initiatives.
Obligations for Cannabis Retailers
Cannabis retailers are responsible for collecting and remitting a cannabis excise tax from their customers. This tax is calculated based on the gross receipts generated from the retail sale of cannabis or cannabis products.
Gross receipts encompass the following:
- The selling price of the cannabis or cannabis product
- Additional retail expenses passed onto the customer
- Delivery fees
- Service charges
- Packaging costs
Retailers must diligently track and account for all relevant sales transactions to fulfill their tax obligations per state regulations.
Navigating CDTFA Tax Audits
The CDTFA conducts tax audits to assess whether businesses have paid the correct amount of taxes in compliance with state regulations. During these audits, the auditor scrutinizes sales and purchase records to ensure accuracy and transparency in tax reporting.
Red flags for auditors may include the following:
- Failure to report sales and use tax
- Consistent late filings
- Significant changes in business operations
The CDTFA focuses on various aspects of tax compliance during audits. The auditor may verify the reported gross receipts to ensure that all income is accurately accounted for. They may also examine business expenses, including business equipment and supplies costs. Additionally, the auditor may check that the tax rates were adequately applied and local taxes were correctly allocated.
-
Steve N.
One of the best attorneys I've had the privilege of working with in my entire life He cares about his clients, takes care of business, and always gets the best results. I would recommend him highly to anybody that has an issue and if you use my name you'll probably get a better price but don't tell him I said that.
-
“The amount of experience, knowledge, and expertise in the criminal and cannabis field is incredible”Harry A.
-
“He has always done a good job and gone the extra mile for me.”Matt C
-
Roddy D.
As a colleague, I have the privilege of witnessing Eric's success on a large scale. He is a great human being and genuinely cares about his clients. He is honest, never sugar coats, says what he means, and means what he says. Any client should feel blessed to have this Jedi-Attorney on their team!
-
Eric Shevin is an outstanding attorney. He is patient, concise, honest, and always answers your calls with any questions you may have. His fees are also very reasonable. It has been a pleasure working with him in the past few years that i have known him. I highly recommend him.Shoram Z.
-
“He cares deeply about his clients and has a track record of success for 30 years”Carolyn R.
-
Wesley H.
Have used the Law Offices of Eric Shevin for a variety of legal services ranging from complex business structuring to short contract negotiations. The services were always excellent, on-time, and cost effective.
-
Bob M.
I've been a client of Eric Shevin's for over 10 years in a variety of different matters. Excellent staff & attention to detail. I highly recommend his Law Group.
