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When a California business with unpaid sales and use tax liability closes its doors, the California Department of Tax and Fee Administration (CDTFA) may begin a process to hold the company’s owners, officers, or other key individuals personally liable for the debt. This action, known as a dual determination, is the state’s method for piercing…

Part I: The Threat to Your Personal Assets: Understanding the CDTFA Dual Determination Receiving a notice from the California Department of Tax and Fee Administration (CDTFA) threatening personal liability for a business’s tax debt is a source of significant stress for any corporate officer, director, or manager. This action, known as a dual determination, represents…

In the landscape of California tax law, the principle of the “corporate veil” traditionally shields owners and officers from personal liability for business debts. However, when it comes to unpaid sales and use taxes, the California Department of Tax and Fee Administration (CDTFA) has a powerful tool to pierce that veil: the dual determination. A…