CDTFA Notice of Determination: How to Respond

The short version is this: the notice is not an invitation to negotiate, and it is not a suggestion. It is the formal assessment that follows an audit or examination, and it starts a clock. If the clock runs out, the amount on the notice, tax, interest, and any penalties, becomes a final liability the CDTFA can collect.

The whole question hinges on the 30 days

You have 30 days from the date the notice was mailed to file a petition for redetermination. File on time and the determination does not become final while your petition is pending, the CDTFA flags the account as an active appeal, which holds off collection and the late-payment penalty. Miss it and the determination becomes final, payment is due, and a 10% penalty is added to the amount determined under Revenue and Taxation Code section 6565.

Two qualifications worth stating plainly, because not every notice is the same:

• The 30-day period applies to sales and use tax determinations. Notices under other CDTFA-administered programs can carry different response periods, read the deadline printed on your notice, and do not assume.
• If your notice names you personally rather than the business, or says dual determination, treat it differently. That is the CDTFA pursuing you as a responsible person for the entity’s liability, and the defense is not the same as the audit fight.

What a petition for redetermination actually is

A petition for redetermination is the formal challenge to the assessment, form CDTFA-416, or a letter that states your account number, the amount in dispute, and the specific grounds you disagree, signed by you or your representative.

The petition does three things. It keeps the determination from going final. It moves your case into the CDTFA’s appeals process rather than its collection process. And it preserves your ability to argue the audit’s methodology, the sampling, the markup analysis, the disallowed resale certificates, instead of just the arithmetic.

That last point is where most of the money is. In our CDTFA matters, the recurring issues are not calculation errors. They are audit method: a test period that was not representative, a markup estimate built on the wrong product mix, exempt sales disallowed for documentation the business actually has. A petition that just says “we disagree” wastes the opportunity. A petition that attacks the method, with the records to back it, is how assessments come down.

How long do you have, really: a timeline

1. Day 0: Notice of Determination mailed.
2. Day 30: Petition deadline. Filed = the liability is contested and collection is held. Not filed = it goes final and the 10% penalty attaches.
3. After filing: an appeals conference with the CDTFA; many cases resolve here.
4. If unresolved: an appeal to the Office of Tax Appeals, a separate body with its own deadlines.
5. Settlement: the CDTFA has a settlement program for civil disputes; eligibility and timing depend on the posture of the case.

If you would rather have the petition handled than explained, our CDTFA audit attorney page covers how we take on audits, petitions for redetermination, and appeals conferences.

Frequently asked questions

Do I have to pay the amount while I fight it?

A timely petition means the disputed amount is generally not due while the petition is pending, and the CDTFA does not add the 10% late penalty while the appeal is active. Interest continues to run. If the determination goes final without a petition, payment is due and collection can begin.

Can I handle a petition without an attorney?

Yes, the CDTFA does not require counsel. The honest answer on when it matters: if the dollars are small and the issue is arithmetic, handle it yourself. If the assessment is built on sampling or markup methodology, spans multiple periods, threatens a dual determination, or is large enough that losing changes your business, this is a legal dispute and worth treating like one. Since 2013 we have represented 400+ clients in audits, and the pattern is consistent, method challenges brought early do better than everything brought late.

What happens if I already missed the 30 days?

The determination is final, but final is not the end. Paying the liability and then filing a refund claim reopens the merits through a different door. It is a worse road than the petition, slower, and you finance the fight, which is why the 30 days matter.

If the notice is on your desk now: read the deadline printed on it, calendar it, and pull the audit workpapers together, the CDTFA’s file, not just your returns. If you want a second set of eyes on whether the method holds up, book a free 15-minute call. We will tell you whether the petition is worth filing.