Company Must Pay Erroneous Sales Tax Collections to California

A California weight loss supplement retailer that collected sales tax from customers in states where it wasn’t a registered seller must remit those taxes to the state, the Office of Tax Appeals said in an opinion posted Monday.

A three-judge OTA panel agreed with the state sales tax department that Body Wise International Inc. had two choices when it was discovered at audit that its sales tax compliance software mistakenly charged tax on all sales, including those shipped to customers in states where it wasn’t registered. The company had to refund the collected tax to ...