State tax inspectors to investigate more Placentia businesses

February 15, 2012 by  

Placentia retailers and other businesses would be wise to have all the necessary operating permits and licenses required by the state. Business owners in Placentia and several other communities can expect a visit from a state tax office inspector in the near future.

State tax hunters plan to stop by some 9,700 businesses in Placentia and eight nearby California communities to determine whether businesses are complying with state law by properly collecting sales and use taxes and paying their fair share of other required fees and taxes.

Representatives will not show up unannounced. An official letter of intent has been sent to affected businesses with state tax office letterhead that most likely came from a stationery printing service. Seven eight-member teams will go door-to-door on behalf of the California State Board of Equalization. In addition to Placentia, tax inspectors will also be knocking on the doors of businesses in Whittier, Van Nuys, El Cajon, Concord, Wilton, Elk Grove and Chico.

The tax collection program was launched 4 years ago in an attempt to reduce what the board says totals $2 billion in unpaid taxes. Businesses owners who lack the required licenses or permits can be fined up to $1,000 and possibly serve jail time on top of repaying all back taxes and being subject to periodic audits.

About 98 percent of California businesses have been found to be in full compliance with state tax laws. Businesses with general tax questions can contact the Taxpayer Information Call Center at 800-400-7115.