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California is tackling Amazon FBA sellers for Franchise Tax

California’s Franchise Tax Board (“CFTB”) has started a battle for income tax with Amazon sellers who makes use of the Amazon FBA program.

California is unique as it has two different agencies that handle California’s taxes: CFTB administers California’s income tax – Franchise Tax and California’s Department of Tax and Fee Administration (“CDTFA”) administers other taxes, including sales tax.

The state of California has realized that they lost billions in tax and has put up a fight against Amazon sellers. Right now state requires the payment of stockholding fees for goods from third parties.

Source: 1StopVAT

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