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Step 1: Relax. There may still be time to take care of this.
A government tax notice can be stressful, but it does not automatically mean you are being audited or that collection action is imminent. Do not ignore it. Some letters have short deadlines that affect appeal rights, benefits, refunds, or collection actions. Open the entire letter, identify the date and response deadline, and keep every page and envelope.
Step 2: Find the CDTFA form number and account information
CDTFA says that if a letter has no clear title, its form identifier is generally printed near the bottom left (for example, CDTFA-1210-DET). Also check the Letter ID, tax or fee program, reporting period, deadline, and issuing office. A sales-tax notice can be about a missing return, a proposed assessment, collections, or a permit—not necessarily an audit.
CDTFA collections can interrupt business operations—including cash-register seizures.
Businesses should not assume that unanswered CDTFA notices will simply result in another letter. Once a qualifying sales or use tax liability is due and final, CDTFA has powerful collection tools, including bank levies, third-party levies, and warrants involving business cash receipts. These measures can quickly disrupt inventory purchases, payroll, vendor payments, and daily operations.
What are a “till-tap” and a “keeper” warrant?
CDTFA's official Publication 54, Collection Procedures, explains that CDTFA may serve a civil warrant on the California Highway Patrol or a local sheriff to enter an active business and collect gross receipts or the contents of its cash registers. A till-tap generally directs the officer to collect the cash present when the officer arrives. A keeper can involve an officer remaining at the business to collect receipts over the period authorized by the warrant. These are not powers to be exercised by any unverified person claiming to represent CDTFA; verify the warrant and the officer's authority.
What this can mean for a restaurant: If operating cash is taken and bank funds are levied, a restaurant may be unable to replenish food inventory, pay suppliers, or meet payroll. A collection action can therefore create a second crisis even when the business is still making sales. In our experience assisting businesses, repeated cash-register collections have made continued operations extremely difficult. The frequency and scope of any particular seizure depend on the warrant and applicable procedures; no law cited here authorizes an unlimited, automatic twice-daily seizure in every case.
Legal authority and limits
R&TC § 6703 authorizes CDTFA notices of levy on qualifying property or payments held by third parties. R&TC §§ 6736–6739 address entry and enforcement of tax judgments, including execution. CDTFA's own Publication 54 specifically describes till-tap and keeper warrants and the role of law-enforcement officers. Different procedures apply to bank deposits, third-party payments, and physical cash seizures; they should not be treated as one interchangeable remedy.
Act before collections reach this stage. Confirm the liability and its finality, review available petition and appeal rights, contact the assigned CDTFA collector or office identified on the notice, and explore payment arrangements or other legally available relief. Do not ignore a Notice of Determination, Demand for Immediate Payment, or Notice of Levy.
Official authority: CDTFA Publication 54: Collection Procedures (till-tap and keeper warrants); R&TC § 6703 (notice of levy); R&TC Chapter 6, collection and execution statutes.
Step 3: Identify the notice and read the summary
The summaries below are organized by topic. Open a notice to see suggested first steps and a link to the official CDTFA explanation. This guide does not replace the notice-specific instructions.
Sales and use tax notices and letters (2)
CDTFA-400-USC: Customs Pre-Notification LetterCDTFA received information about imports that may be subject to California use tax.Learn more +
CDTFA-537: Customs Statement of Proposed LiabilityCDTFA proposes use tax based on imported merchandise information.Learn more +
Billing and collections notices and letters (3)
CDTFA-425-LA: Notice of LevyCDTFA has initiated a levy process involving property or funds.Learn more +
CDTFA-1210-DEM: Demand for Immediate PaymentCDTFA reports an outstanding balance and requests payment.Learn more +
CDTFA-1210-STA: Statement of AccountCDTFA provides an account balance or transaction summary.Learn more +
Returns and accounts notices and letters (4)
CDTFA-431-CUTS: Notice of DelinquencyDelinquency notice for a particular CDTFA program.Learn more +
CDTFA-431-XXX: Notice of DelinquencyCDTFA believes a return or other required filing is overdue.Learn more +
CDTFA-1293: Notice of Pending Account ClosureCDTFA indicates an account may be closed.Learn more +
CDTFA-1293-A: Notice of Cancellation of Permit/License/AccountCDTFA indicates a permit, license, or account was cancelled.Learn more +
Audits and assessments notices and letters (6)
CDTFA-432: Statement of Proposed LiabilityCDTFA presents a proposed liability.Learn more +
CDTFA-846: Notice of Proposed LiabilityCDTFA proposes a tax or fee liability.Learn more +
CDTFA-1210-XX: Notice of DeterminationCDTFA formally determines a tax or fee amount.Learn more +
CDTFA-1641: Questionable Deductions LetterCDTFA asks about deductions or claimed exclusions.Learn more +
CDTFA-5030: Schedule A LetterCDTFA asks about Schedule A information.Learn more +
CDTFA-5033: Excess Tax Reimbursement LetterCDTFA believes a business collected more tax than it reported.Learn more +
Other notices and letters (2)
CDTFA-431-XX: Notice to AppearCDTFA directs the recipient to appear or respond in connection with an account matter.Learn more +
CDTFA-1169-B: Vehicle/Vessel/Aircraft/Mobile Home Use Tax Not Paid Contact LetterCDTFA asks about unpaid use tax on a registered asset.Learn more +
Before you respond to CDTFA
Collect the relevant sales and use tax returns, POS reports, bank statements, resale certificates, invoices, purchase records, and previous correspondence. Check whether the letter requests a filing, documentation, payment, petition, or contact with an assigned auditor or collector. If it involves a formal determination, levy, or permit cancellation, seek prompt review.
These are simplified summaries of notices identified on CDTFA's official page. Exact consequences, appeal periods, and methods vary by program and letter.
Official CDTFA letters and notices directory ↗
Not sure what the letter means or how to respond?
D’Ruiz Services in Chula Vista can help review the correspondence, identify the issue and deadline, and discuss next steps. Roberto E. Ruiz, EA, provides authorized tax representation where appropriate. Please bring the complete notice and any related filings or prior letters.
Call 619-425-9388Contact D’Ruiz Services