Do You Need California Sales Tax Defense? (When to Call a CPA for CDTFA Audits)

Q: What is California sales tax defense?

California sales tax defense is CPA-led representation that protects your business during a CDTFA audit, helps resolve sales tax disputes, and works to reduce proposed tax, interest, and penalties.

Q: When should I hire a CPA for a sales tax audit?

You should hire a CPA as soon as you receive any correspondence or notice from the CDTFA. Early representation preserves your ability to challenge estimates, sampling methods, and penalties before they become final.

Q: Can I handle a sales tax audit on my own?

Yes, but it can be risky. CDTFA auditors are trained to apply aggressive estimation methods and may assess higher liabilities if documentation is missing or incomplete. Without a representative, many business owners overlook key defenses.

Q: Do I need a tax attorney or a CPA?

A CPA is typically the best choice for CDTFA audit defense, especially for issues involving bookkeeping, POS data, markup testing, or sampling disputes. A tax attorney is usually only necessary for criminal fraud cases or formal litigation.

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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.

California Sales Tax Audits Step by Step
What Happens When You Fail a CDTFA Audit
CDTFA Audit Manual – How They Think
CDTFA Penalties – What You Can Owe

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.

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Marc Boulanger, CPA — California Sales Tax & CDTFA Audit Specialist

Marc is a CPA with many years of experience helping California business owners resolve complex sales tax and CDTFA audit matters. With formal training in accounting and a Master’s degree in Accounting, Marc combines technical precision with practical experience across industries such as restaurants, auto repair, retail, and multi-location franchises.

Outside of work, Marc enjoys traveling the country with his wife of 30 years and their five children. His approach to audit defense is built on clear communication, thorough analysis, and treating every client’s business as if it were his own.