The CDTFA identified $745.3 million in sales and use tax deficiencies in fiscal year 2024–25 — up roughly 19% from $626 million the year before — and its compliance programs returned $7.50 for every dollar spent. Nineteen large audits alone produced $189.8 million.
Every figure here comes from the CDTFA’s own Annual Report and its audit collections supplemental report. The trend they show is not subtle: California’s sales tax enforcement is growing, and it pays for itself several times over.
The enforcement numbers (FY2024–25)
- $745.3 million in tax deficiencies identified (net of refunds) — vs. ~$626 million in FY2023–24
- $1.0 billion+ in compliance-program revenue at a 7.5 benefit-to-cost ratio
- 19 large audits produced $189.8 million — an average near $10 million each
- SCOP: 61,923 in-person permit checks · 129 unpermitted businesses registered · 435 audit referrals · $228.4 million generated
What the SCOP numbers mean for ordinary businesses
The Statewide Compliance and Outreach Program is the part most owners have never heard of: CDTFA staff physically canvass business districts, checking permits door to door. Nearly 62,000 checks in one year means the odds of never being looked at are lower than most businesses assume — and 435 of those checks became audit referrals. The audit triggers chapter covers the other selection paths.
The audit itself: reach and methods
Three years of returns for permitted businesses, eight for unpermitted, no ceiling for fraud. Auditors rarely take books at face value — markup testing, bank-deposit analysis, and 1099-K matching are standard, and each has known failure modes the sales tax guide covers. If the exam has already produced a Notice of Determination, the 30-day petition clock controls everything — see sales tax defense for how those cases run and what they cost.
Frequently asked questions
How much does the CDTFA find in audits each year?
The CDTFA identified $745.3 million in tax deficiencies (net of refunds) in fiscal year 2024–25, up from roughly $626 million the year before. Its compliance programs generated over $1 billion in revenue at a 7.5-to-1 benefit-to-cost ratio.
Does the CDTFA really check businesses in person?
Yes. Its Statewide Compliance and Outreach Program performed 61,923 in-person permit checks in FY2024–25, registered 129 businesses operating without seller’s permits, and referred 435 leads to the audit program.
How far back can a California sales tax audit go?
Three years for businesses holding a seller’s permit; up to eight years if no permit was held. Fraud removes the ceiling entirely.
What happens after a CDTFA audit assessment?
You have 30 days from the Notice of Determination to file a petition for redetermination. Miss it and the assessment becomes final and collectible — with liens, levies, and permit consequences following.
If the numbers above have become personal — a notice, an audit letter, a balance you can’t pay — book a free 15-minute call or call (619) 378-3138. We’ll tell you where you actually stand before you spend anything.
Sources: CDTFA Annual Report 2024–25 (Publication 306); CDTFA SUT Annual Audit Collections and SCOP Supplemental Report 2025. Updated as new fiscal-year reports publish.