California sales and use tax returns

California Sales Tax Return Filing and Catch-Up Help

California seller's permit holders must file a sales and use tax return for every reporting period, even with no sales. CDTFA assigns a monthly, quarterly, quarterly prepay or annual basis. Returns and payments are generally due the last day of the month after the period ends, and late filing or payment can add a 10% penalty plus interest.

Sources: CDTFA Publication 73, Your California Seller's Permit · Revenue and Taxation Code §6591 (CDTFA law guide)

We prepare and file monthly, quarterly and annual CDTFA sales and use tax returns for California businesses. We also catch up missed periods and respond when CDTFA has estimated a bill. Co-Founder Shawn Zali spent more than seven years at the CDTFA as an auditor, so we prepare each return with the records behind it in mind.

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How we handle your sales tax returns

1

Free 30-minute consultation

Tell us your filing basis, which periods are open or late, and any CDTFA notices or bills you've received. We explain the next steps and the dates that matter.

2

We get authorized and review your account

You authorize us with the CDTFA (form CDTFA-392 or an online request through CDTFA's online services) so we can see your filing history and talk to CDTFA about your account.

3

We reconcile, prepare and file

We tie reported sales to your sales records, document the deductions you claim, report use tax on taxable purchases and file each monthly, quarterly or annual return. Then we keep your future due dates on a calendar.

What CDTFA expects from a seller's permit holder

TopicWhat CDTFA saysSource
Filing basisCDTFA assigns a reporting basis: monthly, quarterly, quarterly prepay, fiscal annual or annual.Pub 73
Due dateGenerally the last day of the month after the reporting period closes. A June 30 quarter is due July 31. A due date on a Saturday, Sunday or legal holiday moves to the next business day.Pub 73
No sales in a periodYou still file a return. Not receiving a return or reminder from CDTFA doesn't excuse filing.Pub 73
PrepaymentsRequired if your average monthly taxable sales are $17,000 or more. CDTFA notifies you in writing.Pub 73
Electronic paymentRequired if your average monthly tax is $10,000 or more.Pub 73
Late return or paymentA 10% penalty for late payment and a 10% penalty for a late return, capped at 10% of the tax for any one return, plus interest.RTC §6591, Pub 73
ExtensionYou can ask for an extension of up to one month. Interest still applies, but no penalty if the extension is granted and you pay within it.Pub 73
Use tax on purchasesPermit holders report use tax on taxable business purchases on their sales and use tax return.Pub 73

Behind on returns or facing an estimated bill

  • CDTFA follows up on missing returns. Since July 2022, CDTFA has used an automated process for non-filers: reminders, then a statement of the proposed amount, then a bill for the amount CDTFA determines you owe. CDTFA may also revoke the seller's permit.
  • An estimated bill isn't based on your books. By law, when a return isn't filed, CDTFA estimates the tax from the information it has and adds a 10% penalty (RTC §6511).
  • The look-back period depends on filing. For businesses that file returns, the statute of limitations is generally three years. For periods with no return filed, it's eight years (Pub 76).
  • Filing accurate returns is the usual next step. We prepare the missing returns from your records so the amounts reflect your actual sales.
  • Payment plans and relief requests. CDTFA lets you request a payment plan and relief from penalty or interest through its online services (Pub 73, Pub 75).
  • If a bill turns into a Notice of Determination you disagree with, the petition window is generally 30 days. See our CDTFA sales tax audit help page.

Opening, changing or closing a seller's permit

Opening an account

You need a seller's permit if you're engaged in business in California and sell or lease merchandise that's ordinarily subject to sales tax. Wholesalers and retailers both apply. CDTFA doesn't charge for the permit but may require a security deposit in some cases.

Ownership changes

Incorporating, forming an LLC or partnership, or adding or dropping a partner is a change in ownership that must be reported to CDTFA. Until it is, prior owners can stay liable for the business's taxes.

Closing an account

Notify CDTFA online or on form CDTFA-65 when you stop selling or sell the business. File a final return that includes sales of fixtures and equipment, and keep records for four years after closing.

Buying a business

A buyer can be held liable for the seller's unpaid sales tax unless a tax clearance is obtained. Ask the seller for one before you close.

Sources: Pub 73 · Pub 74, Closing Out Your Account

What to gather before we file

  • Your seller's permit number and CDTFA filing basis (monthly, quarterly or annual)
  • Copies of returns already filed and any CDTFA notices, statements or bills
  • Sales records for each open period: point-of-sale reports, sales journals and invoices
  • Bank statements for the same periods
  • Resale and exemption certificates for sales you treat as nontaxable
  • Purchase invoices for equipment and supplies bought without California tax
  • Your federal income tax returns for the same years, if CDTFA is asking about prior periods

Work with a former CDTFA auditor

  • Shawn Zali, Co-Founder, former CDTFA auditor (7+ years). Shawn knows how auditors review a return: whether all gross receipts were reported, whether deductions are supported and whether use tax was reported on untaxed purchases. Those are the questions CDTFA's own audit guide lists. We prepare your returns with them in mind.
  • A team of Enrolled Agents, CPAs and former state auditors, based in Irvine.
  • Raman Zoobalan, EA, Co-Founder and Partner. Over 25 years in accounting and tax resolution.
  • Proof: ★ 4.3 Google rating · 1,200+ clients helped · $68M+ recovered · BBB Accredited Business · 2021 BBB Torch Award

Tax Resolution Plus is a private firm. We work for you and deal with CDTFA as your authorized representative, not as part of the agency.

Questions about California sales tax returns

When is my California sales tax return due?

Generally on the last day of the month after your reporting period ends. For a quarter that ends June 30, the return and payment are due July 31. If the due date falls on a Saturday, Sunday or legal holiday, it moves to the next business day. CDTFA assigns your filing basis.

Do I have to file a CDTFA return if I had no sales?

Yes. CDTFA says you must file a return for every reporting period, even if you had no sales or don't owe tax. Not receiving a return or reminder from CDTFA doesn't excuse you from filing on time.

What happens if I don't file my California sales tax returns?

CDTFA sends reminders, then a statement of the proposed amount, then a bill for the amount it determines you owe. It may also revoke your seller's permit. For periods with no return filed, CDTFA generally has eight years to assess tax instead of three.

What is the penalty for a late CDTFA sales tax return?

The law sets a 10% penalty for paying late and a 10% penalty for filing late, but the total for any one return is capped at 10% of the tax. Interest is added from the due date. You can request relief from penalty or interest through CDTFA's online services.

How do I close my seller's permit when I stop selling?

Notify CDTFA through its online services or on form CDTFA-65. File a final return that reports all sales, including sales of fixtures and equipment, and pay what's owed. Keep your records for four years after the account is closed.

Get your CDTFA returns current

Tell us which periods are open. We'll explain your options and next steps in plain language.

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