Do You Need California Sales Tax Defense? (When to Call a CPA for CDTFA Audits)
California’s sales tax system is one of the most complex and aggressively enforced in the country. If you’re being audited by the California Department of Tax and Fee Administration (CDTFA) — or even if you just think you might be — don’t wait to find out what happens if things go wrong.
You may need professional sales tax defense if your records are disorganized, you’ve underreported sales, or you’re facing penalties you don’t fully understand.
This post explains when to call in a CPA for help with sales tax audits, what defense actually looks like, and how you can protect your business from thousands in unexpected tax liability.
Signs You Might Need Sales Tax Defense
Even a “routine” CDTFA audit can spiral into a nightmare if you're not prepared.
You likely need professional help if:
- You
can’t find or recreate key records
- You’ve been notified of a
Notice of Determination
- Your business
accepts cash or doesn’t reconcile POS data regularly
- You
sell online, and district tax application is inconsistent
- You already received an
estimated assessment
- CDTFA
disputes exempt sales or resale certificates
- You’ve received letters from
collections or enforcement agents
What Does Sales Tax Defense Include?
Sales tax defense is more than just paperwork. At Boulanger CPA, we provide:
| Stage | What We Do |
|---|---|
| Audit Notification | File power of attorney, take over contact, schedule all correspondence |
| Records Review | Rebuild documentation, identify gaps, create defensible narratives |
| Audit Strategy | Push back on flawed assumptions, protect your rights, limit scope |
| Preliminary Results | Negotiate adjustments, submit evidence, prepare appeals |
| Final Determination | Petition for redetermination, pursue settlement, minimize penalties |
What Is at Stake in a CDTFA Audit?
| Risk Area | Potential Consequence |
|---|---|
| Unreported Sales | Full sales tax + interest + penalties |
| Fraud Penalties | 25%–40% added to liability |
| Permit Issues | Suspension, revocation |
| Collections | Bank levies, liens, license suspension |
| Repeat Errors | Criminal referral in extreme cases |
Why You Need a CPA — Not Just Any Rep
Not all “tax resolution” firms understand California sales tax law. And many outsource cases to call centers or junior staff.
At Boulanger CPA, your case is led by a licensed California CPA, not a script reader.
We bring:
- Local audit experience
- Understanding of CDTFA procedures
- Strategic defense planning
- Legal-level representation — without law firm pricing
Who We Represent
We help businesses of all sizes, especially:
- Restaurants and food service
- Online sellers and Shopify stores
- Construction contractors
- Auto repair shops and car dealers
- Small retailers and wholesalers
Whether you have a simple POS mismatch or a full-blown audit disaster, we’re here to take control.
Local to Orange County — Serving All of California
We meet with clients in person by appointment or remotely across the state. We know CDTFA territory officers, audit units, and how district tax enforcement really works.
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Frequently Asked Questions
What is California sales tax defense?
It’s CPA-led representation that helps defend your business during a CDTFA audit, resolve tax disputes, and minimize liability.
When should I hire a CPA for a sales tax audit?
As soon as you receive a notice from the CDTFA. Waiting too long can limit your ability to challenge estimates or penalties.
Can I handle a sales tax audit on my own?
Yes, but it’s risky. CDTFA auditors are trained to push for higher liabilities. Without a representative, you may miss key defenses.
Do I need a tax attorney or a CPA?
A CPA is usually best for audit defense unless your case involves criminal fraud or litigation. Most CDTFA matters are handled by CPAs.
📣 About the Author
Marc Boulanger, CPA is the founder of Boulanger CPA and Consulting PC, a boutique tax resolution firm based in Orange County, California and trusted by high-income individuals and business owners across Southern California.
He is the author of Defend What’s Yours: A California Taxpayer’s Guide to Beating the IRS and FTB at Their Own Game, available now on Amazon. The book offers a step-by-step plan for resolving IRS and FTB tax debt without losing your business, your home, or your peace of mind.
With over a decade of experience resolving high-stakes IRS and State tax matters, Marc brings strategic insight to complex cases involving wage garnishments, bank levies, unfiled returns, and six-figure tax debts. He is known for helping clients reduce or eliminate tax liabilities through expertly negotiated settlements and compliance plans.
Marc is a Certified Public Accountant licensed in California and Oklahoma and holds the designation of Certified Tax Representation Consultant. He is a member of the American Society of Tax Problem Solvers (ASTPS) — the national organization founded by the educators and practitioners who have trained thousands of CPAs, EAs, and tax attorneys in IRS representation strategy.
Every case is handled with discretion, proven methodology, and direct CPA-led representation — not call center scripts.
📍 Learn more at www.orangecounty.cpa or call (657) 218-5700.
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