LLC just received a "Notice of Close-Out of Use Tax Account Under the Qualified Purchaser Program."
Assembly Bill x4-18 (Stats. 2009, Ch. 16) added section 6225 to the Revenue and Taxation Code, which requires a "qualified purchaser" to register with the Board of Equalization (BOE) and report and pay use tax directly to the BOE. This is required even if the Q.P. has no use tax to report or pay.
I called the State BOE, and they said what the letter says: s After I am registered will I be required to file returns for subsequent years? Yes, Revenue and Taxation Code section 6225 requires the person to be registered on an ongoing basis, and you are required to file returns for each calendar year your business is operating.
I told the kind lady that the law says nothing about canceling the account after three years, and if the entity is required to file each year, will they have to open another account. She says the entity will no longer have to file if its use tax liability is zero. I asked what regulation says that, since the statute does not. She said it was in the BOE operations manual (or some such thing), so I ask her to send me a copy. But they don't give that out to the public. So it is secret? No it is not secret, we just don't give it out.
So, I told her I won't file, and when they come after me I will say some nice lady in Sacramento told me not to, but it would be our little secret.
Any thoughts?