California—Changes to the Board of Equalization (BOE) Audit Manual, Chapter 4, General Audit Procedures

SALT Report 3395 – On June 24, 2014, the BOE during the Administrative Session will be hearing/voting on approval of Item N4-Proposed revisions to Audit Manual, Chapter 4, General Audit Procedures.  These changes are important to be aware of as the BOE absorbs new laws, regulations, policies and procedures enacted over the last few years.

The following are some of the pending revisions to the BOE Audit Manual in the area of General Audit Procedures:

  • Form BOE–1032, Information on Out-of-State Retailers will no longer be in used.  In its place the auditor will prepare Form BOE–1164, Audit Memorandum of Possible Tax Liability.
  • Form BOE-1164 will be replaced with an updated version to include information for Out-of-State Retailers.
  • The definition of a “retailer engaged in business in the state” will be expanded to include “any retailer entering into an agreement or agreements under which a person or persons in this state, for a commission or other consideration, directly or indirectly refer potential purchasers of tangible personal property to the retailer, whether by an Internet-based link or an Internet Web site, or otherwise, provided that certain conditions are met.”

For Further Information:

N4-Proposed revisions to Audit Manual, Chapter 4, General Audit Procedures

California State Board of Equalization – Public Agenda Notice, June 24- June 26