California Revenue and Taxation Code § 41133.1

Revenue and Taxation Code
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A service supplier’s or seller’s account is eligible for the managed audit program only if the service supplier or seller meets all of the following criteria: (a) The service supplier’s or seller’s business involves few or no statutory exemptions. (b) The service supplier’s or seller’s business involves a single or small number of clearly defined taxability issues. (c) The service supplier or seller pays a surcharge pursuant to this part and agrees to participate in the managed audit program. (d) The service supplier or seller has the resources to comply with the managed audit instructions provided by the department.

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