California Appeals Office Affirms CDTFA’s Sales Tax Audit of Auto Repair Shop’s Unreported Taxable Sales

The California Office of Tax Appeals (OTA) June 9 affirmed the Department of Tax and Fee Administration’s (CDTFA) sales and use tax audit of Taxpayer’s unreported taxable sales. Taxpayer operated a tire and auto repair shop and made retail sales of used rims and other auto parts through eBay. The CDTFA conducted an audit of Taxpayer’s business and determined that the sales were underreported. The CDTFA issued a notice of determination including tax, applicable interest, and a negligence penalty. Taxpayer appealed the determination. The OTA observed that: 1) Taxpayer didn’t provide complete records for the audit and the records provided ...