BOE sales and use tax audit can lead to income tax audit.

• Position: MAP Survey

The FTB recently warned that the California Board of Equalization's adjustments to sales and use tax returns has a direct impact on both gross receipts and business expenses on the income tax return.

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The FTB suggests reviewing the audit report at the conclusion of a sales and use tax examination to determine if any changes were made to reported sales (total sales or taxable sales). In situations where total sales were adjusted, review the corresponding income tax...