Unsure where you owe sales or use tax
Run Your Nexus Risk CheckIf your business has California nexus but did not register or collect sales tax, you may face audit risk from the California Department of Tax and Fee Administration.
Audit risk increases when:
Identifying nexus exposure early reduces the risk of formal enforcement.
Run Your Nexus Risk CheckCommon CDTFA audit triggers include:
Businesses that exceed nexus thresholds but fail to register are often flagged.
California Economic Nexus Threshold Explained | Marketplace Facilitator Rules California
The CDTFA uses multiple data sources to identify potential sales tax exposure:
If your revenue suggests nexus but no permit exists, audit probability increases.
Before registering or filing, confirm whether your business has created sales tax nexus in California or Texas.
Run Your Nexus Risk CheckAn audit may involve:
If nexus existed for multiple years, total liability may increase significantly.
Businesses can reduce exposure by:
Acting before receiving contact generally provides more options.
If your business may have created nexus in California, determining your exposure before receiving an audit notice is critical.
Run Your Nexus Risk CheckIdentify potential audit exposure and next steps before enforcement begins.