Electronic Filing - Sales and Use Tax Frequently Asked Questions (FAQ)

1. What is E-Filing?
2. What is a service provider?
3. What is the difference between E-filing with a service provider or directly with the BOE?
4. What are the benefits and advantages of E-filing?
5. Is there a cost to E-file?
6. Is E-filing available to everyone who files a sales and use tax return?
7. Is E-filing available seven days a week, 24 hours a day?
8. What measures are used to secure the data sent over the Internet?
9. How do I register to E-file?
10. How do I E-file my return?
11. How do I sign an E-filed return?
12. How do I make my payment?
13. How do I know that the BOE has received my sales and use tax return and payment information?
14. How is timely filing of my tax return and/or payment determined?
15. When are the funds transferred from my account?
16. Are all financial institutions and accounts accessible for an ACH direct debit?
17. Can I make a partial payment?
18. What if a refund is due?
19. If my account has been revoked. Am I eligible to E-file?
20. If I E-file my return one time, will I be required to E-file all future returns?
21. What if I forget or misplace my password/PIN?
22. Will the password/PIN I have been assigned by one service provider be valid with another service provider or BOE-file?
23. Who should I contact if I have tax questions?
24. Who should I contact if my account information changes and needs updating?
25. Who do I contact for technical assistance?
26. Can I discontinue receiving paper returns now that I am filing my returns electronically?

1. What is E-Filing?

Electronic Filing (E-filing) is a process which makes it possible for taxpayers to use the Internet to file a California sales and use tax return and make a payment either through a service provider or directly to the Board of Equalization (BOE-file). The return and payment are filed electronically so there is no postage cost and no need to worry about items being lost or delayed in the mail.

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2. What is a service provider?

A service provider, also known as an Electronic Return Originator, is a is a third party, either a private business or individual, which has successfully completed BOE acceptance testing and has been authorized to receive tax return and payment information from taxpayers and forward it to the BOE for processing.

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3. What is the difference between E-filing with a service provider or directly with the BOE?

A service provider is a third party, either a private business or individual, which has successfully completed BOE acceptance testing and is authorized to receive return and payment information from taxpayers and forward it to the BOE for processing. E-filing with BOE-file is directly through the BOE and does not use a service provider. For more information see the Comparison of E-Filing Program Options.

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4. What are the benefits and advantages of E-filing?

E-filing is fast, easy, convenient and accurate. All you need is a computer and access to the Internet. You need not leave your home or office to file. You will receive confirmation that your return and payment information has been accepted for processing. And, if tax is due, you do not even need to write a check; funds are transferred electronically. Some of the benefits of E-filing include:

• No paper tax returns to be filed, including no signature documents to be completed and mailed.
• No postage expenses.
• "Real-Time" processing of return information.
• Electronic security ensures confidentiality of data.
• Instant confirmation that the BOE received your filing.
• Calculations are performed automatically.
• Available 24 hours a day, 7 days a week (except for scheduled maintenance)

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5. Is there a cost to E-file?

A service provider may charge a fee for compiling your return and payment information and submitting it to the BOE. No fee is charged by, or paid to, the BOE.

There is no fee to use BOE-file to electronically file your return and payment.

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6. Is E-filing available to everyone who files a sales and use tax return?

No. E-filing is currently available to taxpayers who file a Form 401-EZ or a Form 401-A (with Schedule A only), who conduct business from a single location, and are not required to participate in the mandatory Electronic Funds Transfer (EFT) Program. E-filing is not available to taxpayers that have filed for bankruptcy or have confidential filing status. Please review the Eligibility Criteria for additional information.

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7. Is E-filing available seven days a week, 24 hours a day?

Return and payment information can be submitted to a service provider whenever its computer system is available. Scheduled system maintenance is performed on the BOE's computer system between Sunday 5:00 p.m. and Monday 5:30 a.m. Pacific Time. Tax return and payment information cannot be processed by BOE while scheduled maintenance is being performed. Responsibility for filing a return and submitting payment for tax due remains with each taxpayer. A paper return may be filed when electronic filing is not available. However, the paper return must be postmarked by the return due date to be considered timely.

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8. What measures are used to secure the data sent over the Internet?

The E-filing Program uses the Internet to receive and transmit tax return information. It incorporates the following technological attributes to ensure data security: User-ID, Password, Data Encryption, Electronic Signature (Authorization and Security Codes), and Acknowledgments. Each taxpayer must also use security procedures that are reasonably sufficient and use best efforts to ensure that all transmissions of tax returns are authorized. A taxpayer must take the necessary precautions to safeguard its technological attributes and notify the BOE at 800-400-7115 when it has knowledge that its technological attributes have been compromised or a change in its authorized representative has occurred.

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9. How do I register to E-file?

When you are ready to participate in the E-filing Program, select either one of the service providers or BOE-file. Selecting one of the logos will take you to the service provider's website or to the Board of Equalization's E-file system. Follow the instructions on each website to complete the registration process. Once you are registered, you will be provided with a password/PIN that authenticates you as the authorized taxpayer to submit your tax return and payment information.

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10. How do I E-file my return?

Once you have completed the registration process and you are ready to submit your return and payment information, log-on to the Internet, select either the service provider or BOE-file that you have registered with and submit your California sales and use tax return information. Your eligibility to e-file will be confirmed through the BOE. You should have available all the business records you would reference if you were filing a paper return.

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11. How do I sign an E-filed return?

The password/PIN serves to authenticate you as the authorized taxpayer. In addition, the Declaration of Intent to E-File completed during the enrollment process affirms your intention to electronically file your return.

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12. How do I make my payment?

Payment of tax is made either through the Automated Clearing House (ACH) direct debit method of transferring funds or by credit card. Not all of the Electronic Return Originators may offer the credit card option at this time.

The ACH direct debit method allows you to transfer funds by authorizing the BOE to electronically debit your checking account. When filing your return, you must provide your bank account number and the routing number of the financial institution (ABA number) you use. The BOE does not currently validate banking information so we are unable to prevent input errors. Therefore, it is very important to double check your entries for any keying errors before submitting an E-file transaction. Failure to enter the correct banking information will cause your transaction to be returned without payment and may subject your account to delinquency charges.

To pay your tax by credit card, have your credit card with you when you choose the credit card payment option. You will be directed to the credit card vendor’s website to make your payment and get your payment confirmation number.

Please note: You must return to the e-filing website to complete the e-filing of your tax return. Once you receive your e-filing confirmation number your transaction is complete.

American Express, Discover/Novus, MasterCard and Visa cards are accepted. The credit card vendor will charge a convenience fee of 2.5% of the transaction amount. This convenience fee is retained by the vendor and is not revenue to the BOE. The minimum fee is $1.00.

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13. How do I know that the BOE has received my sales and use tax return and payment information?

When all the return and payment information has been submitted, it will be transmitted to the BOE. When the return and payment information is accepted for processing by the BOE, a confirmation of filing number will be provided to you. Please keep the confirmation of filing number for your records. If your return information is rejected, you will not receive a confirmation of filing number. You will be immediately notified of the reason(s) for the rejection. You may need to provide additional information or clarify the existing information so that your return may be resubmitted and a confirmation number can be received. Inquiries regarding a return filing must include the confirmation of filing number.

The filing confirmation number does not confirm that your ACH debit payment has been accepted by your bank or that the funds have been received by the BOE. The BOE does not currently validate banking information so we are unable to prevent input errors. Failure to enter the correct banking information will cause your transaction to be returned without payment and may subject your account to delinquency charges.

If you choose to pay by credit card, you will be directed to the credit card vendor’s website to make your payment. Once your credit card payment is accepted you will receive a payment confirmation number.

Please note: You must return to the e-filing website to complete the filing of your tax return. Once you receive your filing confirmation number your transaction is complete.

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14. How is timely filing of my tax return and/or payment determined?

E-filed tax returns and ACH direct debit payments receive an electronic "postmark" of the date and time they are submitted. This postmark is used to determine if the filing is timely.

If a tax return or payment is received by the BOE after the due date, interest and/or penalty may be charged. Failure to file a tax return, or filing an incomplete tax return, may result in charges for interest, penalty and/or license revocation. For help in calculating any additional interest and/or penalty charges that may be due, contact the BOE at 800-400-7115.

Please Note: When e-filing, you must complete the filing of your return/payment information and receive your confirmation of filing number before 12:00 a.m. on the tax due date to be considered a timely filing.

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15. When are the funds transferred from my account?

Your payment will be processed and funds will be transferred when your return information is accepted as filed. However, you may request, that return and payment processing be delayed (warehoused) to a date no later than the due date of the return.

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16. Are all financial institutions and accounts accessible for an ACH direct debit?

All financial institutions capable of electronically transferring funds through the ACH network can support this payment option. Contact your financial institution to ensure that funds can be electronically transferred from the checking account that you designate.

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17. Can I make a partial payment?

Full payment of tax is required. If your return is filed late and penalty and interest are not included in your payment, you will be billed for the additional amount due.

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18. What if a refund is due?

You must submit a separate request, in writing (Form BOE 101, Claim for Refund), to the BOE. This request must include your account number, tax reporting period, reason for the request, and the confirmation of filing number which was assigned when your return was accepted for processing.

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19. If my account has been revoked. Am I eligible to E-file?

Yes. Return and payment information for revoked accounts may be submitted to the BOE for processing. However, submission of a return and payment of tax does not reinstate the account to active status. Information regarding the reinstatement process is available from your local BOE office.

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20. If I E-file my return one time, will I be required to E-file all future returns?

No. You may file an electronic return in one period and file a paper return in another period. You will continue to receive paper returns whether or not you choose to participate in the E-filing Program. However, please do not file an electronic return and a paper return for the same reporting period.

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21. What if I forget or misplace my password/PIN?

If you are filing your return using a service provider: You must contact the service provider directly. Your password/PIN is assigned by, and is only available from, the service provider you selected.

If you are filing using BOE-file: A forgotten/misplaced password can be changed from the Electronic Services Login screen by selecting Forgot Password.

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22. Will the password/PIN I have been assigned by one service provider be valid with another service provider or BOE-file?

No. Each service provider and the BOE sets its own policy regarding password/PINs and will not accept a password/PIN assigned by another.

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23. Who should I contact if I have tax questions?

If you have questions regarding specific tax advice, filing procedures or requirements, please contact the BOE at 800-400-7115, Monday through Friday (except state holidays) from 8:00 a.m. to 5:00 p.m. Pacific Time.

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24. Who should I contact if my account information changes and needs updating?

If you have an address change, a change in ownership, have discontinued operations, or sold your business complete a Notice of Business Change form.

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25. Who do I contact for technical assistance?

If you are filing your return with a service provider: Contact the service provider directly.

If you are filing using BOE-file: Contact the BOE at 800-400-7115.

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Comparison of Board of Equalization E-filing Program Options

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26. Can I discontinue receiving paper returns now that I am filing my returns electronically?

Yes, to have BOE discontinue sending the paper return you must first register as an e-client with the BOE.

To register, select the BOE-file link, then select the "Register to E-File" link and follow the instructions to register as an E-client.

Note: You must have a copy of your return with the account number before you register as an e-client. Once you are registered, you will receive three separate e-mails that identify your default password, User ID, and account permissions.

Once you complete the e-client registration, select the Login to BOE-file link.

1. Type your USER ID and password and select the Submit button.
2. Select the "Maintain your Sales and Use Tax Account" link from Electronic Filing – Electronic Services Main Menu.
3. Enter the account number of the account you wish to update and select the Continue button.
4. Under "Paper Returns" check the box provided to discontinue receiving paper returns.
5. Select the Submit button to send your request to the BOE.

You should receive an e-mail from BOE confirming that you no longer wish to receive paper returns for the selected account.

On the first day of the month that your return is due, we will send you an e-mail reminding you to file your electronic return instead of a paper return. Failure to receive an e-mail reminder or tax return from the BOE does not excuse you from the requirement to file your return timely.

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