A California sales tax attorney defends businesses in CDTFA audits, appeals, and collections — disputes where the state claims you under-collected or under-remitted sales tax. The exposure is rarely just the tax: assessments stack penalties and interest on top, and when a business has closed, the CDTFA can pursue owners personally.
The state’s own enforcement numbers — $745 million in deficiencies identified last fiscal year — are collected on our sales tax audit statistics page.
Since 2013, Brotman Law has represented over 400 clients in tax audits, and California sales tax work is a core part of that practice — restaurants, auto dealers, contractors, e-commerce sellers, and every other business the CDTFA tests. We handle the audit, the appeal, and the collection case that follows a bad assessment. We also tell people when they don’t need us, which is more often than you’d think.
Do you actually need a sales tax attorney?
Not always. If your returns are current and the question is how to collect and remit correctly, your CPA or bookkeeper is the right call, and the sales tax guide on this site will answer most setup questions for free.
An attorney makes sense when the matter has become adversarial. In our experience, that line gets crossed when:
- You’ve received a CDTFA audit engagement letter and the auditor wants records, a tour, or an interview.
- The auditor is using indirect methods — markup testing, bank-deposit analysis, or 1099-K matching — and the projected numbers don’t resemble your actual sales.
- You’ve received a Notice of Determination and the appeal clock is running.
- The CDTFA is pursuing you personally for a closed or sold business.
- Anyone has used the word fraud, or the audit has gone quiet in a way that suggests a referral.
There is also a privilege point. Conversations with your CPA are generally discoverable; conversations with counsel are not. When an audit has real exposure, that difference matters — and if accounting work is needed, we can bring your accountant under the attorney-client umbrella through a Kovel arrangement.
What a CDTFA sales tax case looks like
The short version is that the CDTFA audits three years of a registered business’s returns — and up to eight years if you never held a seller’s permit. The auditor rarely takes your books at face value. Expect one or more indirect methods: a markup test (applying an assumed margin to your purchases), a bank-deposit analysis (treating deposits as taxable sales until proven otherwise), or 1099-K matching against processor records. Each method has known failure modes — spoilage, self-consumption, nontaxable sales, transfers between accounts — and the defense is usually about attacking the method, not arguing about honesty.
If the audit ends in a Notice of Determination you disagree with, you have 30 days to file a petition for redetermination. From there the case can move through the CDTFA’s appeals process to the independent Office of Tax Appeals, and settlement is available at several points along the way. Deadlines in this process are unforgiving: miss the petition window and the assessment becomes final and collectible.
What happens if you ignore a CDTFA audit?
The CDTFA issues an estimated assessment based on the auditor’s method of choice, adds a failure-to-file or negligence penalty, and the balance begins collecting interest. Once final, the assessment moves to collections — liens, levies, and permit consequences that can shut a business down. Every option gets worse after the assessment is final, and most of the leverage lives in the audit itself. If you’re holding an engagement letter now, the should-you-hire-counsel chapter walks through the decision in detail.
Personal liability when a business closes
California does not let sales tax debt die with the entity. Under Revenue and Taxation Code § 6829, the CDTFA can assess a responsible person — an owner, officer, or anyone with control over tax payments — personally for the unpaid sales tax of a terminated business. We see these dual determinations regularly against people who believed the corporate shield protected them. They are defensible: § 6829 requires both responsibility and willfulness, and both elements can be contested on the facts.
What we charge
Fees are quoted upfront, before you commit to anything. Depending on the matter, we work hourly or flat-fee, and we will tell you honestly when the exposure doesn’t justify our involvement. Most sales tax defense engagements land between $2,500 and $20,000 depending on stage and posture. The tax attorney cost guide publishes real ranges, and our pricing page explains how engagements are structured. The first 15-minute call is free; attorney consultations beyond that are paid, and we’ll tell you the fee before you book it.
The record: $100M+ in tax penalties and interest eliminated for clients. 400+ audit representations. A team that handles CDTFA matters from first letter through OTA appeal.
Tell us about your sales tax matter
A short note is enough — we respond to new inquiries within one business day.
California sales tax attorney FAQ
How much does a California sales tax attorney cost?
It depends on posture: audit defense, an appeal, and a collection case are priced differently, hourly or flat-fee. We quote the fee upfront before you commit. Our cost guide publishes real ranges so you can compare before you ever call anyone.
Can the CDTFA audit a business that already closed?
Yes. Closing the business does not close the exposure — audits reach back three years for permitted businesses and up to eight if no seller’s permit was held, and Revenue and Taxation Code § 6829 lets the CDTFA assess responsible individuals personally after the entity terminates.
Should I use my CPA or an attorney for a CDTFA audit?
Your CPA is the right person for compliance and clean-books questions. Once the matter is adversarial — indirect methods, projected assessments, appeal deadlines, personal liability, any hint of fraud — attorney-client privilege and dispute experience matter, and a Kovel arrangement can bring your CPA inside the privilege.
How long do I have to appeal a CDTFA assessment?
Thirty days from the Notice of Determination to file a petition for redetermination. Miss it and the assessment becomes final and collectible. After the CDTFA’s internal appeals process, unresolved cases can go to the independent Office of Tax Appeals, and settlement is available along the way.
Where to go deeper
The California sales tax guide covers the mechanics — rates (7.25% statewide base, up to roughly 10.75% with district taxes), how rates are determined, what triggers audits, and exemptions. For the agency itself, see our CDTFA defense overview.
If the CDTFA has contacted you, the next step is simple: book a free 15-minute call or call (619) 378-3138. We’ll tell you whether you need us, and what it costs, before you spend anything.