California Form CDTFA-401-EZ is the Short Form — Sales and Use Tax Return that small California sellers file with the California Department of Tax and Fee Administration to report gross sales, claim a few common deductions, and pay state and local sales or use tax. You use it only if your business has no district tax owed, no partial state tax exemptions, and no complicated deductions beyond resale and nontaxable food products. The current version referenced in this guide is CDTFA-401-EZ (REV. 41), posted on the agency’s forms and publications page.
The wrong return triggers an automatic notice, a 10% late penalty, and interest that compounds daily under Revenue & Taxation Code § 6591. The CDTFA processes more than 2.4 million sales and use tax returns each year, and the agency’s own audit data shows roughly 1 in 7 small-seller returns contains at least one math or classification error that the system flags within 30 days, according to the CDTFA Annual Report.
Here is what you will learn in this guide:
- 📋 Who qualifies to file the EZ instead of the long-form CDTFA-401-A
- 🧾 Every line, box, and signature block explained in plain English
- 👩🍳 Three full filled-out examples (boutique, food truck, Etsy seller)
- 💸 Filing channels, deadlines, and how to avoid the 10% late penalty
- 🛡️ Common mistakes, do’s and don’ts, and audit-safe recordkeeping habits
What Form CDTFA-401-EZ Is and Who Must File It
Form CDTFA-401-EZ is California’s simplified sales and use tax return, designed for sellers whose activity fits inside a narrow box: no district tax owed, no partial state exemptions (such as the manufacturing or farm-equipment partial exemption), and no deductions beyond Sales to Other Retailers for Resale and Nontaxable Sales of Food Products. The return is authorized by Revenue & Taxation Code § 6452, which requires every person holding a California seller’s permit to file a return for each reporting period, even if no tax is due.
You must file this form if the CDTFA assigned the EZ to your account at registration, or if you log in to the online services portal and the system presents the EZ based on your account profile. The CDTFA controls which return you see — you cannot pick the EZ on your own. Sellers who collect district tax, sell partially exempt items, accept manufacturer’s coupons reimbursed by the manufacturer, or claim bad-debt deductions must use the long-form CDTFA-401-A instead.
The agency that receives the form is the CDTFA, headquartered in Sacramento and described in detail in Publication 73. The deadline depends on your assigned filing frequency: monthly filers file by the last day of the month after the period ends, quarterly filers file by the last day of the month after the quarter ends, and annual filers file by January 31 of the following year, per Regulation 1699. The penalty for missing the due date is 10% of the tax owed, plus interest at the rate set under R&TC § 6591.5.
Failure to file at all triggers a failure-to-file penalty under R&TC § 6511 and can lead to seller’s permit revocation. The CDTFA cross-checks every return against 1099-K data from payment processors, so a non-filer with credit-card sales is easy for the agency to spot.
Before You Start: Documents and Information You Need
Gathering your records before you log in saves you from filing twice or amending later. The CDTFA expects you to keep books and records for at least four years under Regulation 1698, and an audit will pull every document on this checklist.
Pull these items together before you open the online filing portal:
- Seller’s permit number (account number). Without it, you cannot log in to the portal. The number appears on your permit issued under R&TC § 6066. A wrong number routes your payment to another taxpayer.
- Gross receipts ledger for the period. Every sale, taxable or not, goes on Line 1. Missing a single deposit understates gross sales and creates a reconciliation gap if the CDTFA pulls your bank records.
- Use tax purchase invoices. These are out-of-state purchases for business use where no California tax was charged. Use tax is owed under R&TC § 6201, and skipping Line 2 is the most-audited error on the EZ.
- Resale certificates received from buyers. You need a valid CDTFA-230 on file before you can deduct a sale on Line 4. Without it, the deduction is denied.
- Nontaxable food product records. If you claim a deduction on Line 5, you need itemized sales receipts that match the food categories in Regulation 1602.
- Combined tax rate for your business location. The EZ uses one statewide rate, but if you collected at a higher local rate by mistake you must reconcile it. The current rates are posted on the CDTFA tax rate lookup page.
- Bank account and routing numbers. ACH debit through the portal is the default payment method. A typo in the routing number causes a failed payment and a 10% penalty.
- EFT enrollment confirmation, if applicable. Sellers with an average tax liability of $10,000 or more per month must pay by EFT under R&TC § 6479.3. Paying by paper check after that threshold triggers a separate 10% EFT penalty.
- Prior period return for reference. Comparing line-to-line catches obvious anomalies before you submit.
- Power of attorney form (CDTFA-392), if a preparer is filing for you. Without it on file, the agency cannot legally talk to your bookkeeper.
Where to Get the Form and How to Access It
The official PDF of the EZ lives on the CDTFA’s forms page under Sales and Use Tax Returns. Most filers never download the paper version because the agency now requires online filing for almost every active permit holder under the mandatory e-file rule. The paper form exists mainly as a worksheet you can use to draft your numbers before keying them into the portal.
To access the online return, go to the CDTFA online services login and sign in with your username and password. First-time users register using their seller’s permit number, business name, and the express login code mailed by the CDTFA, or by entering a recent return amount as identity verification. Once inside, click Returns, then File a Return next to the period you owe.
The portal pre-loads your business name, account number, period start and end dates, and due date, so you cannot accidentally file the wrong period. If you truly need the paper form (for example, if the agency has approved a hardship waiver under R&TC § 6479.3(c)), you can request it by calling the CDTFA Customer Service Center at 1-800-400-7115 or by visiting any field office.
The revision date prints in the lower-left corner of the PDF. Confirm you have the most recent revision before drafting numbers, because the agency reorders or relabels lines in some revisions and a 2019 worksheet will not match the current portal.
Step-by-Step: How to Fill Out CDTFA-401-EZ Line by Line
The EZ has a header section, a short body of numbered lines (1 through 13 in the current revision), and a signature block. The portal builds the same structure as the paper form, so the walkthrough below works for both. Each subsection covers one box on the return.
Header: Account Number, Period, and Due Date
The top of the return identifies who is filing and when the period closed. The portal pre-fills these fields, but if you use the paper worksheet you write them by hand.
This field asks for your seller’s permit account number, the reporting period start and end dates, and the return’s due date. You enter the account number in the format printed on your permit (for example, SR KH 123-456789), the period as MM/DD/YYYY to MM/DD/YYYY, and the due date as the last day of the month following the period.
For example, Maria Lopez, who runs a Sacramento boutique, enters SR KH 102-345678, 07/01/2026 to 09/30/2026, and 10/31/2026. A common edge case is a short period after a permit start date mid-month, where the period start equals the permit issue date, not the first of the month. The most common mistake is keying last quarter’s dates into a new return; the consequence is filing the wrong period and triggering a duplicate notice. The misconception filers carry is that the CDTFA will fix the dates for you; the agency will not, and you will need to amend.
Line 1: Total (Gross) Sales
Line 1 captures every dollar of sales made during the period, taxable or not, before any deductions. The CDTFA reconciles this number against your federal Schedule C, your 1099-K totals, and your bank deposits.
Add up gross receipts from cash, credit card, third-party platforms, and any in-kind trades, then enter the total in whole dollars. Do not subtract sales tax collected — that comes out later, automatically, in the portal.
For example, Maria Lopez recorded $48,720 in boutique sales for Q3 2026 and writes 48,720 on Line 1. A common edge case is a marketplace sale where Etsy or Amazon already collected and remitted the tax under the Marketplace Facilitator Act; you still report those sales on Line 1, then deduct them later as a marketplace facilitator deduction inside the portal.
The most common mistake is reporting net sales after refunds netted in the wrong period; the consequence is an under-reported gross that does not match your 1099-K and a CDTFA reconciliation letter. The misconception is that if a sale is nontaxable, it doesn’t go on Line 1 — it does, because Line 1 is gross, not taxable.
Line 2: Purchases Subject to Use Tax
Line 2 captures the cost of items you bought from out-of-state sellers for use in your California business when no California tax was charged. Use tax is owed under R&TC § 6201 and is one of the most-audited lines on the EZ.
Add up the purchase price of those items (shipping included) and enter the total. Do not include items bought for resale, because those move through Line 4 when you sell them.
For example, Carlos Reyes, the food truck owner, bought a $1,200 commercial blender from an Arizona vendor with no California tax charged and writes 1,200 on Line 2. A common edge case is a SaaS or digital download — those are generally not subject to California use tax under Regulation 1502 and stay off Line 2.
The most common mistake is leaving Line 2 blank because you assume the seller handled it; the consequence is a use-tax assessment plus penalty if an audit finds the invoice. The misconception is that small purchases don’t count — every dollar of taxable use counts, and the CDTFA matches credit card statements during audits.
Line 3: Total
Line 3 is the sum of Line 1 and Line 2. The portal calculates it automatically; on paper, you add the two by hand.
Write the sum in whole dollars. For example, Maria Lopez with $48,720 on Line 1 and $0 on Line 2 enters 48,720 on Line 3.
A common edge case is when Line 2 is larger than Line 1 because a seller had no sales but bought equipment from out of state — Line 3 still equals the sum, and you still owe use tax. The most common mistake is a transcription error from Line 1 or Line 2; the consequence is a math-error notice and a corrected balance from the agency. The misconception is that Line 3 is the taxable base — it is not, because deductions on Lines 4 through 8 still come out before tax is calculated.
Line 4: Sales to Other Retailers for Resale
Line 4 deducts sales you made to buyers who gave you a valid resale certificate. The deduction is authorized under Regulation 1668, and you must keep the certificate on file for at least four years.
Sum the dollar value of those qualifying sales and enter the total. Each sale must match a CDTFA-230 certificate on file before you completed the sale.
For example, Janet Park, who sells handmade soaps wholesale, deducts $3,200 of sales to a downtown gift shop and writes 3,200 on Line 4. A common edge case is an XYZ Letter sent to a buyer whose certificate looks suspicious; until the buyer responds, you should not claim the deduction.
The most common mistake is claiming Line 4 without a signed certificate on the sale date; the consequence is a denied deduction and a sales-tax assessment on the full amount during audit. The misconception is that a buyer’s resale number on an invoice is enough — it is not, because you need the buyer’s signature on a complete certificate.
Line 5: Nontaxable Sales of Food Products
Line 5 deducts sales of food products that qualify as nontaxable under R&TC § 6359 and Regulation 1602. Cold groceries to-go usually qualify; hot prepared food, dine-in meals, and carbonated drinks usually do not.
Add up the qualifying food sales and enter the total. Keep your point-of-sale category report so you can prove the split.
For example, Carlos Reyes sold $11,400 in cold packaged sandwiches and bottled water to-go and writes 11,400 on Line 5, while keeping his hot-meal sales on the taxable side. A common edge case is the 80/80 rule, which makes all food taxable when more than 80% of sales are food and more than 80% are hot or for here, per Regulation 1603.
The most common mistake is deducting hot prepared food as nontaxable; the consequence is a denied deduction and back-tax plus penalty. The misconception is that all food is tax-free in California — it is not, because the rules turn on temperature, packaging, and the 80/80 test.
Line 6: Other Deductions (Limited)
The EZ allows a narrow set of other deductions, mainly bad debts already-paid-on, returned merchandise, and marketplace facilitator sales reported elsewhere. The portal lists each allowed type in a dropdown.
Pick the deduction reason from the dropdown, enter the amount, and attach supporting notes if prompted. For paper filers, write the type and amount on the line.
For example, Aisha Brown, the Etsy seller, deducts $22,500 of marketplace facilitator sales already taxed by Etsy under the Marketplace Facilitator Act. A common edge case is a returned-goods refund crossing periods; you take the deduction in the period of the refund, not the original sale.
The most common mistake is using Line 6 as a catch-all for items that really belong on the long form (such as a partial-exemption sale); the consequence is the CDTFA bumping you to a CDTFA-401-A and re-billing the period. The misconception is that cash discounts go here — they do not, because cash discounts already reduce gross on Line 1.
Line 7: Total Nontaxable Transactions
Line 7 sums Lines 4, 5, and 6. The portal calculates it; on paper, add the three.
Write the sum in whole dollars. For example, Aisha Brown adds 0 + 0 + 22,500 and writes 22,500 on Line 7.
A common edge case is a negative number from a refund-heavy period; the line cannot go below zero on the EZ, so excess refunds carry to the next period. The most common mistake is including Line 2 (use-tax purchases) in this subtotal; the consequence is double-deducting and an under-tax assessment. The misconception is that Line 7 is your refund — it is not, because it is just a deduction subtotal.
Line 8: Transactions Subject to State Tax
Line 8 equals Line 3 minus Line 7. This is the actual taxable base.
Subtract and enter the result. For example, Maria Lopez subtracts 48,720 − 0 = 48,720.
A common edge case is when Line 7 exceeds Line 3 because of a heavy refund period; the answer is zero, never a negative. The most common mistake is keying the wrong subtraction order; the consequence is over- or under-paying tax. The misconception is that Line 8 already includes district tax — it does not, because EZ filers have no district tax.
Line 9: State, Local, and County Tax
Line 9 multiplies Line 8 by the statewide combined rate, currently 7.25% (6.00% state + 1.00% local Bradley-Burns + 0.25% county) under R&TC § 7203. The portal applies the rate automatically.
Multiply Line 8 by 0.0725 and enter the result. For example, Maria Lopez multiplies 48,720 × 0.0725 = 3,532.20 and enters 3,532.20.
A common edge case is a rate change mid-period; the portal handles the proration. The most common mistake is using the combined rate that includes a district tax (such as 8.75% in Los Angeles); the consequence is over-collecting tax that does not belong on the EZ and triggers a long-form bump. The misconception is that the EZ rate is 6% — it is not, because Bradley-Burns local and the county rate are baked in.
Line 10: Adjustments for Prepayments
Line 10 lets quarterly prepayment filers credit prepayments made during the quarter. Most EZ filers leave it blank because the EZ is rarely used by prepayment accounts.
If you made a prepayment, enter the prepaid amount as a positive number; the portal subtracts it. For example, Marcus Lee, an annual filer, enters 0 because he makes no prepayments.
A common edge case is a prepayment made late and already penalized; you still claim the credit, but the penalty stays. The most common mistake is claiming a prepayment that was actually applied to a different period; the consequence is a denied credit. The misconception is that prior period overpayments belong here — they do not, because those move through a refund claim under R&TC § 6902.
Line 11: Net Tax Due
Line 11 equals Line 9 minus Line 10. This is the tax you owe before penalty and interest.
Subtract and enter the result. For example, Maria Lopez enters 3,532.20.
A common edge case is a net of zero with a use-tax-only period; you still file. The most common mistake is rounding the wrong direction and underpaying by pennies; the consequence is a small balance-due notice. The misconception is that you can skip filing if Line 11 is zero — you cannot, because R&TC § 6452 requires a return every period.
Line 12: Penalty
Line 12 is the 10% late penalty under R&TC § 6591. The portal calculates it automatically when the file date is past the due date.
If you are filing on time, leave Line 12 at zero. If late, multiply Line 11 by 0.10.
For example, Carlos Reyes files three days late on a $580 balance and the portal enters 58.00. A common edge case is a reasonable cause waiver request, which you submit on form CDTFA-735 after filing.
The most common mistake is trying to zero out Line 12 manually; the consequence is a corrected billing notice and a delay in clearing the period. The misconception is that the penalty is per day — it is not, because the EZ penalty is a flat 10%.
Line 13: Interest
Line 13 is interest under R&TC § 6591.5, accruing monthly from the due date until paid. The portal calculates it using the published interest rate table.
For on-time filers, leave at zero. Otherwise, the portal does the math. For example, Carlos Reyes, late by part of a month, sees 3.87 on Line 13.
A common edge case is interest on use-tax-only periods, which still accrues from the original due date. The most common mistake is paying the tax but ignoring interest; the consequence is a small residual balance that grows over time. The misconception is that interest stops once you file — it does not, because interest stops only when you pay in full.
Signature Block: Declaration Under Penalty of Perjury
The signature line confirms the return is true and correct under penalty of perjury per R&TC § 7056. In the portal, your e-signature and login credentials count as the signature.
Type your full legal name, title, phone number, and date. For example, Maria Lopez, Owner, 916-555-0144, 10/28/2026.
A common edge case is a paid preparer signing for the seller; the preparer must hold a CDTFA-392 power of attorney. The most common mistake is leaving the title blank; the consequence is a portal validation error that blocks submission. The misconception is that e-filing skips the perjury declaration — it does not, because clicking submit is a sworn statement.
Three Filled-Out Examples Using Real Scenarios
Below are three full walkthroughs that show how different small sellers complete the EZ. Each follows one named filer through the most important parts of the return.
Scenario 1: Maria Lopez, Sacramento Boutique (Quarterly Filer)
Maria runs an in-store boutique with no online sales, no out-of-state purchases, and no resale buyers.
| Form Section | What Maria Enters |
|---|---|
| Account Number | SR KH 102-345678 |
| Reporting Period | 07/01/2026 to 09/30/2026 |
| Line 1 — Total Sales | 48,720 |
| Line 2 — Purchases Subject to Use Tax | 0 |
| Line 3 — Total | 48,720 |
| Line 7 — Total Nontaxable | 0 |
| Line 8 — Taxable | 48,720 |
| Line 9 — Tax at 7.25% | 3,532.20 |
| Line 11 — Net Tax Due | 3,532.20 |
| Signature | Maria Lopez, Owner, 10/28/2026 |
Scenario 2: Carlos Reyes, Los Angeles Food Truck (Quarterly Filer)
Carlos sells hot tacos and cold bottled drinks, bought a blender from Arizona without tax, and files three days late.
| Form Section | What Carlos Enters |
|---|---|
| Account Number | SR FH 215-678901 |
| Reporting Period | 07/01/2026 to 09/30/2026 |
| Line 1 — Total Sales | 26,800 |
| Line 2 — Purchases Subject to Use Tax | 1,200 |
| Line 3 — Total | 28,000 |
| Line 5 — Nontaxable Food | 11,400 |
| Line 7 — Total Nontaxable | 11,400 |
| Line 8 — Taxable | 16,600 |
| Line 9 — Tax at 7.25% | 1,203.50 |
| Line 12 — 10% Penalty (late) | 120.35 |
| Line 13 — Interest | 3.87 |
| Signature | Carlos Reyes, Owner, 11/03/2026 |
Scenario 3: Aisha Brown, Etsy Seller (Annual Filer)
Aisha sells handmade jewelry only on Etsy, which collects and remits California sales tax for her under the Marketplace Facilitator Act.
| Form Section | What Aisha Enters |
|---|---|
| Account Number | SR EA 309-112233 |
| Reporting Period | 01/01/2026 to 12/31/2026 |
| Line 1 — Total Sales | 22,500 |
| Line 2 — Purchases Subject to Use Tax | 0 |
| Line 3 — Total | 22,500 |
| Line 6 — Other Deductions (Marketplace Facilitator) | 22,500 |
| Line 7 — Total Nontaxable | 22,500 |
| Line 8 — Taxable | 0 |
| Line 9 — Tax at 7.25% | 0.00 |
| Line 11 — Net Tax Due | 0.00 |
| Signature | Aisha Brown, Owner, 01/20/2027 |
How to File the Completed Form
Almost every EZ filer files online. The CDTFA still maintains a paper channel for hardship-waiver filers, and a small in-person window at field offices for filers who insist.
Online (default channel). Log in to the CDTFA online services portal, select your period, key in the numbers, and submit. Payment options include ACH debit (free), ACH credit (initiated by your bank), and credit card through Official Payments with a 2.3% surcharge. Processing is instant; keep the confirmation number, which serves as proof of filing under Regulation 1707.
By mail. Hardship filers mail the completed paper EZ with a check payable to California Department of Tax and Fee Administration to CDTFA, PO Box 942879, Sacramento, CA 94279-7072. There is no filing fee; the only cost is your postage. Processing takes 4–6 weeks. Keep a certified-mail green card as proof of filing.
In person. Walk into any CDTFA field office with the completed return and payment by check, money order, or cashier’s check. The agent stamps a copy as your receipt. Expect a 1–2 hour wait without an appointment.
Fax. The CDTFA does not accept tax returns by fax. Faxed returns are rejected and considered unfiled.
EFT-mandated sellers (those averaging $10,000+ in monthly tax) must pay through the online portal or a separate EFT channel under R&TC § 6479.3. Paying by check after the EFT mandate triggers a separate 10% EFT penalty on top of any late penalty.
What Happens After You File
After you submit, the portal posts the return to your account within minutes and the payment clears within 1–3 business days. The CDTFA matches your numbers against 1099-K data, prior-period returns, and any merchant-processor reports under its data matching program. Most returns clear without follow-up.
If the system flags an anomaly, you receive a Notice of Determination or a Request for Information by mail and through the portal inbox. You have 30 days to respond before the proposed adjustment becomes final under R&TC § 6561. Ignoring the notice converts the adjustment into a final billing that the agency can collect through bank levy or lien.
If your account is selected for audit, you receive a Notice of Audit and a date for an in-office or field review. Audits look back three years by default, or eight years if no return was filed, per R&TC § 6487. You can amend a prior return at any time before the statute closes by filing an amended EZ in the portal.
Mistakes to Avoid When Filling Out the Form
- Filing the EZ when you owe district tax. The return cannot capture district tax, so the agency will rebill the period using CDTFA-401-A.
- Leaving Line 2 blank for out-of-state purchases. Use tax is the most-audited line, and missing it triggers an automatic assessment.
- Reporting net sales on Line 1. Line 1 is gross; netting refunds early causes a 1099-K mismatch.
- Claiming Line 4 with no resale certificate on file. The CDTFA denies the deduction and bills tax on the full amount.
- Deducting hot prepared food on Line 5. Hot food is taxable; the deduction is denied during audit.
- Mixing periods. Reporting October sales on a Q3 return creates duplicate notices and amendment work.
- Skipping the return when no tax is due. R&TC § 6452 requires a return every period regardless of liability.
- Paying by paper check after the EFT mandate. A separate 10% EFT penalty applies on top of any late penalty.
- Ignoring the 80/80 rule on food. A food seller over the threshold owes tax on all food sales.
- Forgetting the signature title. The portal blocks submission, and a paper return without a title is treated as unsigned and unfiled.
- Filing the wrong revision of the paper form. Older revisions have different line numbers, and the agency keys what is printed on the form.
Do’s and Don’ts
Do:
- Reconcile Line 1 to your 1099-K before submitting, because the CDTFA will.
- Keep resale certificates for at least four years to defend Line 4 deductions, as required by Regulation 1698.
- Use the portal even when no tax is due, because filing on time preserves your good-standing status.
- Save the confirmation number, which is your only proof of timely filing.
- Update your filing frequency promptly when sales rise, because the wrong frequency triggers prepayment penalties.
- Review the CDTFA tax rate lookup before filing if you suspect district tax exposure.
Don’t:
- Don’t guess on use tax; pull every out-of-state invoice.
- Don’t combine personal and business sales, because the agency unwinds the combined number during audit.
- Don’t file the EZ if Etsy or Amazon collected on every sale and you have nothing else; you may qualify for an inactive-permit closure instead.
- Don’t pay by credit card if you can pay by ACH debit; the surcharge is non-recoverable.
- Don’t sign for a client without a CDTFA-392 power of attorney on file.
- Don’t ignore portal messages, because the 30-day response clock starts when the message posts.
Pros and Cons of Filing on Your Own vs. With Help
Pros of filing on your own:
- No preparer fee, which preserves margin for small sellers.
- Direct portal experience builds tax fluency you keep year after year.
- Fastest turnaround, because you control submission timing.
- Full control over how line items are categorized.
- Easier to amend yourself once you know the portal.
Cons of filing on your own:
- No second set of eyes to catch a Line 2 use-tax miss.
- You bear all penalty and interest if a deduction is denied.
- The 80/80 food rule and marketplace facilitator math can hide errors.
- A district-tax misclassification will bump you to the long form unexpectedly.
- You lose the audit-defense relationship a CPA or Enrolled Tax Practitioner builds with the agency.
CDTFA-401-EZ vs. CDTFA-401-A at a Glance
| Feature | CDTFA-401-EZ |
|---|---|
| Best for | Small sellers, no district tax, no partial exemptions |
| Number of lines | About 13 |
| District tax schedule | Not included |
| Partial exemptions | Not allowed |
| Bad debt deduction | Not allowed |
| Marketplace facilitator deduction | Allowed under Line 6 |
| Filing frequency | Monthly, quarterly, fiscal yearly, or annual |
| Authority | R&TC § 6452 |
| Feature | CDTFA-401-A |
|---|---|
| Best for | Sellers with district tax, partial exemptions, bad debts |
| Number of lines | 30+ plus schedules |
| District tax schedule | Schedule A required |
| Partial exemptions | Allowed (manufacturing, farm equipment) |
| Bad debt deduction | Allowed |
| Marketplace facilitator deduction | Allowed |
| Filing frequency | Monthly, quarterly, fiscal yearly, or annual |
| Authority | R&TC § 6452 |
FAQs
Do I have to file CDTFA-401-EZ if I had zero sales for the period?
Yes. California requires a return every period, even with zero sales, under R&TC § 6452. Skipping the period triggers a failure-to-file penalty even when no tax is due.
Can I switch from CDTFA-401-A to CDTFA-401-EZ on my own?
No. The CDTFA controls which return your account uses based on your business profile. You can request a switch by contacting Customer Service at 1-800-400-7115.
Do I report Etsy or Amazon sales on Line 1?
Yes. Marketplace sales still belong on Line 1 as gross. You then deduct them on Line 6 as a marketplace facilitator deduction so they are not double-taxed.
Is the 7.25% rate on Line 9 the only rate I use?
Yes. EZ filers use the statewide 7.25% combined rate. If you owe district tax, you must move to the long form CDTFA-401-A.
Do I write my full account number on Line 1 of the paper form?
No. Line 1 is gross sales. The account number goes in the header, formatted as it appears on your seller’s permit.
Should I include sales tax collected in my Line 1 total?
No. Line 1 is gross sales before tax. The portal computes tax on Line 9 from the taxable base on Line 8.
Do I owe use tax on items I bought for resale?
No. Resale purchases are not subject to use tax because the tax attaches when you sell the item. Keep the resale certificate you gave the supplier.
Do hot coffee sales go on Line 5 as nontaxable food?
No. Hot prepared beverages are taxable under Regulation 1603. Only cold packaged food sold to-go generally qualifies for Line 5.
Can I deduct sales tax I refunded to a customer on Line 6?
Yes. A refunded sale reduces gross or qualifies as a return deduction in the period of the refund, with documentation kept for four years.
Is the late penalty on Line 12 negotiable?
Yes. You can request a reasonable cause waiver on form CDTFA-735 after filing. Approval is not guaranteed and depends on facts.
Do I need to register for EFT to file the EZ?
No. EFT applies only when your average monthly tax liability hits $10,000 or more under R&TC § 6479.3. Most EZ filers stay below the threshold.
Can I file an amended CDTFA-401-EZ in the portal?
Yes. The CDTFA portal lets you amend a previously filed return for any open period. The amendment replaces the original numbers and triggers a new payment or refund.
Does signing the return electronically count under penalty of perjury?
Yes. Submitting in the portal is a sworn statement under R&TC § 7056. False entries can lead to civil penalties or criminal referral.
Related reading
- How to Fill Out California Form CDTFA-401-A (w/Examples) + FAQs
- How to Fill Out California Form CDTFA-501-LA (w/Examples) + FAQs
- How to Fill Out California Form CDTFA-735 (w/Examples) + FAQs
- How to Fill Out California Form CDTFA-1010 (w/Examples) + FAQs
- How to Fill Out California Form CDTFA-152 (w/Examples) + FAQs
- How to Fill Out California Form CDTFA-401-2 (w/Examples) + FAQs
- How to Fill Out California Form CDTFA-501-AB (w/Examples) + FAQs