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Leases of Mobile Medical Imaging Equipment – May Provide Tax Refund Options

logo-v2This month, James R. Dumler, a senior sales tax specialist at McClellan Davis and featured contributor at Sales Tax Support, discusses sales tax refund opportunities related to the leasing of mobile medical imaging equipment in his latest article. Sales Tax Support publishes articles written by experts and thought leaders in the specialized field of sales and use tax with small and medium sized business owners in mind.

Visit salestaxsupport.com to read James’informative article “Leases of Mobile Medical Imaging Equipment – May Provide Tax Refund Options”

Board of Equalization Audit Procedures Put Bars at Risk of Overstated Audit Liabilities

Fotolia_93991126_S_Restaurant_tableThe Board of Equalization (BOE) often selects bars for sales and use tax audits. The fact that bars can deal with a significant amount of cash, and can often times have more relaxed financial controls than other types of businesses, make them an ideal target in the eyes of the BOE. In the audit of a bar, an auditor will generally examine the business’ sales records and then seek to verify the recorded amounts with a markup analysis. The markup analysis contains intricate computations and the auditor’s inability to identify certain intricacies […]

Are Tips Subject to Sales Tax in California?

Fotolia_38665300_S_Coffee with tipIf you’re a restaurant owner that’s been through a California sales tax audit, you probably asked the auditor the above question at some point during the process. The answer you probably received was, “It depends,” or, “Sometimes.” If you’re lucky, you didn’t get further clarification in the form of an audit bill for tax on your employees’ tips.

The underlying principle is deceptively simple: if the amounts of your tips are optional (left up to the customers), and all of the tips are actually distributed to your employees, the tips are […]