Tax & Accounting Blog

California: New Fee on Delinquent Taxpayers Effective January 1, 2011

Indirect Tax, Sales and Use Tax January 11, 2011

Show me YOUR money!Beginning this week thousands of California businesses will be assessed a fee based on past due sales tax liabilities. More than 90,000 notifications were mailed out beginning January 1ST. The fee amount ranges from $185 to $925 for this calendar year.

Liability SizeLiability AmountFeeSmall$250.01 – $2000$185Medium$2000.01 – $50,000$550Large$50,000 +$925

Taxpayers can avoid paying the fee by paying their liability in full prior to the fee being assessed.

The new fee requirement was added to the tax code by Senate Bill 858 (Chapter 721, Statutes of 2010).

For more information see NR 145-10-G.