Frequently Asked Questions (FAQs) for Statewide Compliance & Outreach Program

What is the purpose of the Statewide Compliance and Outreach Program (SCOP)?

SCOP is intended to:

  • Make sure you have the state tax and fee permits and licenses you need,
  • Make sure that our records on your business are updated and correct,
  • Allow you to meet a representative who can provide more information and answer your questions, and
  • Make sure you understand your reporting requirements so that you can report accurately.

SCOP estimates that two percent of California businesses are operating without the appropriate permits or licenses. These unregistered businesses have an unfair business advantage over those businesses that are properly registered and reporting their taxes and fees. SCOP is part of a statewide effort to educate business owners, increase tax compliance and help make our tax system fair. The permit and license verification are not intended to replace audits or other tax compliance or enforcement activity.

Do I only need a seller's permit?

The permits and licenses you need depend on your type of business. Some businesses require only a seller's permit, while others also need to register for other state tax and fee programs. For example, cigarette retailers are required to hold a seller's permit as well as a special license to sell cigarettes or other tobacco products. The SCOP representative will assist you in identifying permits you need.

For a full list of CDTFA-administered programs and to see what permits or licenses may be required, please go to the Register for a Permit, License, or Account page.

How do I register for a seller's permit?

If your business sells or leases tangible personal property in California and does not hold a seller's permit, we will instruct you to electronically register. The representative will provide publication 439, Online Services, which contains additional information about electronically registering for a seller's permit.

To register, visit our Online Registration  page and complete the registration process by clicking on Sign Up Now.

For further information on obtaining a seller's permit, please see our Frequently Asked Questions on Obtaining a Seller's Permit.

How will I know when my business will be visited?

SCOP representatives are regularly contacting businesses by phone, email, and, in some cases, conducting in-person visits throughout California. If you have been contacted or visited by a SCOP representative and would like to verify the visit, please contact your local CDTFA SCOP office.

What should I expect when you contact my business?

When contacting a business, SCOP representatives will:

  • Identify themselves and show identification (if the contact is in-person),
  • Answer questions that you may have,
  • Verify the existence of a seller's permit, fee permits and other business licenses/permits that may be required, including a city or county business license, if appropriate,
  • Review your license/permit to verify that it is updated with the correct information,
  • Provide guidance on reporting your sales and use taxes properly, and
  • Provide information and assistance on your sales and use tax responsibilities.

If your business is required to hold a seller's permit and you are operating without one, the SCOP representative will instruct you to electronically register by visiting our Online Registration page and clicking on Sign Up Now. They may also refer you to publication 439, Online Services, to assist you with online registration.

If you hold a valid seller's permit, but it appears you may be reporting incorrectly, the SCOP representative may ask you to file an amended return(s) or may contact you at a later time to obtain additional information. They can also provide you with guidance for proper reporting. If you have overpaid your taxes, they will tell you how to file a claim for refund.

If applicable, a SCOP representative will follow-up at a later date to make sure that your registration, amended return(s), and/or claim for refund requirements are fulfilled.

Please Note: The filing of an amended return does not prevent further CDTFA activity, such as an audit or refund, for the same period(s) in question.

What will happen if I do not get a seller's permit?

You are required to obtain a seller's permit if you are considered engaged in business in California where you sell or lease tangible personal property. If you do not obtain a permit and file back-due returns, an estimated billing may be issued based upon the information gathered by the SCOP representative during their review of your business. You will be charged a 10 percent penalty on the taxes due for failing to file a return by its due date. You could also be charged an additional 50 percent penalty if it is determined that you knowingly failed to obtain a permit to evade tax. For more information, please see publication 75, Interest, Penalties, and Collection Cost Recovery Fee. In addition to any penalties, you may also receive a misdemeanor citation for operating without a seller's permit or with a revoked permit under section 6071 of the Revenue and Taxation Code.

What will happen if I do not file an amended return?

If you are advised to file amended return(s) and do not file the amended return(s) within the time period specified, an estimated billing may be issued based upon the information gathered by the SCOP representative during their review of your business, or your business may be referred for an audit.

If you do file an amended return as advised, please be aware that further CDTFA activity, such as an audit or refund, for the same period(s) may still take place.

If you believe your original sales and use tax returns were filed correctly, or if you have any questions regarding the request to file amended returns, you should contact your local CDTFA SCOP office.

What are my rights?

You have specific legal rights as a California taxpayer. We must honor and uphold them each time we interact with you. As explained in publication 70, Understanding Your Rights as a California Taxpayer, you have the right to:

  • Courteous and prompt service,
  • Fair treatment,
  • Confidentiality,
  • Information and assistance

Can I file a complaint if I have concerns about the SCOP contact or the SCOP representative's behavior?

If you believe a SCOP representative was unprofessional or violated your rights, you may file a complaint by calling or writing your local CDTFA SCOP office. Be sure to explain how the SCOP representative was unprofessional or violated your rights during their contact or visit to your business. Your complaint will be handled by a supervisor or manager, who will contact you to address your concerns. If you are not able to resolve a problem through normal channels, you may contact the CDTFA's Taxpayers' Rights Advocate Office.