New Law Makes Sales Suppression or Sales-Hiding Software Programs and Devices a Crime
Special Notice from Board of Equalization
Beginning January 1, 2014, Assembly Bill 781 (Chapter 532) makes it a crime for anyone to knowingly sell, purchase, install, transfer or possess software programs or other electronic devices that are used to hide or remove sales and to falsify records.
Sales suppression or sales-hiding software and devices allow users to fraudulently hide or remove sales transactions from their electronic records and under report the true amount of taxes or fees collected from customers and owed to the State. These types of software and devices deprive our communities of funding for important state and local services. They also provide users an unfair competitive advantage over those who pay the correct amount of taxes and fees.
Violators of this new law could be sentenced to up to three years in county jail, fined up to $10,000, and will be required to pay all illegally withheld taxes, including penalties and interest. Public awareness and involvement are essential in eliminating sales tax evasion. To report suspected sales tax evasion, contact out Tax Evasion Hotline at 1-888-334-3300. To submit a complaint by email, please got to: www.boe.ca.gov/info/icomplaint.htm.