Tax Guide for Tax Practitioners
Getting Started

Our goal is to provide guidance and relevant information to help you assist your clients in maintaining their accounts with us. We know your time is valuable, so we have made it easy, quick, and convenient for you to use our online resources.

Registration

Your client may register for a permit, license, or account on our website by clicking the Register button at the top right corner of the page. Once registered, your client may also file returns and make payments online.

Third Party Access (TPA)

As a tax practitioner, you can request to register, file, or make payment on behalf of your clients. You will need to create a username and password as a Third-Party Delegate (Tax Preparer, CPA, Representative, Employee, or Other) to gain access to an account. Sign Up Now to begin the enrollment process. Then, log in with your username and password and select Request Access to an Account under the I Want To section. For more information, please see our How to Create a Username and Password for Third Party Access video tutorial. You can also request access for an account by completing CDTFA-91-B, Taxpayer/Feepayer Authorization For Tax Preparer To Perform Electronic Services.

Once you are approved for Third Party Access (TPA), you can:

  • Electronically file returns or prepayments
  • View prior CDTFA-filed returns
  • Personalize your own username and password
  • Receive email reminders of approaching due dates
  • Change business email addresses online

Your client will need to approve or modify your request to gain access to their account, or they can provide you with their security code. A security code will be mailed to your client's business address upon submission of your access request within 7-10 business days. If you require immediate access to the security code, you may also request your client contact the Customer Service Center at 1-800-400-7115 (TTY:711) and it can be provided over the phone. Customer service representatives are available Monday through Friday from 7:30 a.m. to 5:00 p.m. (Pacific time), except state holidays.

If your client provides you with their security code, you will need to log in and complete the steps in the Request Access to an Account link to gain access to their account.

Third Party Access - Multiple Accounts

If you require TPA for multiple accounts, you will need to submit a separate request for each account or obtain their security codes.

Power of Attorney (POA)

Taxpayer representatives authorized to act as Power of Attorney (POA) on behalf of their client must register as a POA with us to discuss any taxpayer issues related to their accounts. You may register as a POA online or by sending form CDTFA-392, Power of Attorney, by mail.

To complete the POA registration, if you do not already have an Online Services profile, you must first create a username and password. To create your username and password, please visit our Online Services page and select Sign Up Now. Follow the prompts to create your username and password, then log in and select Request a Power of Attorney, under the I Want To section. The system will create an online notice, and a system generated letter will be mailed to the taxpayer indicating you have requested to be their POA. The taxpayer can then approve the request in one of three ways:

  • Online,
  • By calling a local field office, or
  • By calling our Customer Service Center at 1-800-400-7115 (TTY:711).

To register by mail, please complete the POA or provide a document that includes the following information:

  1. The taxpayer's name, telephone number, identification numbers (such as Social Security, Federal Employer Identification, or CA Secretary of State number), account or permit numbers, and mailing address,
  2. The name, address (including email, if any), telephone number and FAX number of the appointed representatives,
  3. The tax and fee matters for which the representative is authorized to represent the taxpayer, the scope of the representative's authority; and the filing period(s) for which the authorization is granted,
  4. A statement that the power of attorney revokes all prior powers of attorney, with any exceptions to the revocation noted,
  5. The time period during which the POA will be in effect, and
  6. The signatures and titles of all affected taxpayers and the date of those signatures.

Once completed, you can mail either the POA or this document to your local field office.

Third Party Online Access (TPA) is required for a POA or other representatives who wish to perform online functions. To request TPA as a POA, you must create a username and password. Select Sign Up Now to begin the enrollment process. Then, log in with your username and password and select Request Access to an Account under the I Want To section. If you mailed the POA, you will still need to create a username and password.

Sales and Use Tax Recordkeeping requirements

If a taxpayer holds a California seller's permit, they must maintain business records to verify that they have properly paid tax.

Your clients' records should be detailed enough that our team members are able to:

  • Verify the accuracy of your clients' sales and use tax returns, and
  • Determine if they have correctly paid the tax due on their sales and purchases.

Failure to maintain and keep complete and accurate records may be considered negligence or intent to evade the tax. This may result in penalties or other appropriate administrative action.

Records your client should keep but are not limited to:

  • Normal books of account that show their business income and expenses,
  • Documents of original entry, such as invoices, receipts, job orders, purchase orders, contracts, or other documents used as the basis for their books of account, and
  • All schedules or working papers used in preparing their sales and use tax returns.

Your clients' records should show:

  • The gross receipts from all of your clients' business income, including sales, leases, service charges, and labor income,
  • All of the deductions claimed on your clients' sales and use tax returns, along with supporting documents for those deductions, and
  • The total purchase price, including receipts, for all items your clients purchased for resale, lease, or for their own use.

The level of detail required varies by industry. Records need to be detailed enough for us to determine the date of sale, what your clients sold, all taxable and nontaxable charges, and how much tax was applied to the sale. It is important that they keep all documents to support nontaxable sales.

Your clients should retain records for at least four years. If your client is being audited, have them retain all records that cover the audit period until the audit is complete even if it is longer than four years.

Sales Made on State-Designated Fairgrounds

If your client is a retailer who makes sales of tangible personal property at a California state-designated fair (state-designated fairground), they must separately state the amount of those sales on their sales and use tax return. Sales that take place on state-designated fairgrounds include over-the-counter sales on the fairgrounds and may also include sales in which the property is shipped or delivered to or from the fairground.

The separately-reported amount will be used for funding allocation purposes only. There is no additional tax or fee due on these sales. There is no additional tax or fee due on these sales. For more information on this reporting requirement, see Tax Guide for Reporting Requirements on State-Designated Fairgrounds.

Audits

In general, accounts can be subject to audit in three-year intervals, when permits are closed out, or in connection with other permits held by the taxpayer.

The goal of an audit is to verify that taxpayers are correctly reporting taxes and fees on their returns. You may be designated to represent your clients in an audit.

Please note: The conduct of audits is governed by law and CDTFA policy. In particular, keep in mind that:

  • Our auditors will impartially determine whether your client has reported the correct amount of taxes or fees. Overpayments, as well as underpayments, are also considered during an audit.
  • Your client must provide records according to the provisions found in Regulation 1698, Records, in relation to sales and use tax, or Regulation 4901, Records, in relation to special taxes.
  • Our audit program is intended to correct errors that result in underreporting or overreporting and to inform you and your client on how to properly report on their taxes and fees. During an audit, you may ask any questions you may have about the law governing taxes or fees or your clients' reporting requirements.
  • Our auditors are expected to conduct audits in a professional, courteous, and helpful manner.
  • Frequently, audits do not result in any change in tax or fee amount due.

The following materials can help you to prepare if your client is selected for audit.