Advance Written Determination Program

An Advance Written Determination (AWD) is a written decision issued by the Office of the Treasurer & Tax Collector to a taxpayer or prospective taxpayer regarding an area where there may be a lack of clarity, in many cases before the taxpayer has taken a position in a tax filing. 

If a taxpayer does not follow the AWD in a subsequent tax return, the taxpayer may be subject to additional tax, penalties, and interest. Taking a different position than the AWD will be considered to be within the taxpayer’s control and therefore not eligible for penalty waivers. 

AWDs will be published - in a redacted format in an effort to protect the taxpayer’s identity - so that others may understand the office's position. 

The AWD program is restricted to issues related to tax apportionment and business activity classification.  Applications seeking rulings on other matters will be rejected. 

The following issues will not be considered for AWD:

• Hypothetical scenarios
• Issues that have been addressed in prior Office of the Treasurer & Tax Collector audits of the taxpayer
• Issues currently under audit by Office of the Treasurer & Tax Collector
• Issues unrelated to business activity classification or apportionment
• Issues that are clearly defined in the law

Who Can Apply

Any business subject to San Francisco taxation, or who may become subject to San Francisco taxation. The applicant need not be a registered San Francisco business. 

Application Period

For 2025, applications will be accepted through October 31, 2025. Applications will be accepted March through October each year thereafter, through 2027.

An application fee of $250 is required to partially cover costs.

Fees will be refunded only if the application is declined to be ruled on due to lack of capacity, and fees will not be refunded if an application is rejected as out of scope or for any other reason. 

1. What are the types of issues that are included in apportionment and business activity classification and therefore appropriate subjects of and AWD?

Appropriate areas for ruling include: alternative apportionment, payroll apportionment, sourcing issues, business activity classification

2. What are the types of issues that are not appropriate and will result in rejection?

Inappropriate areas for ruling include: nexus issues; hypothetical scenarios; issues that have already been decided for the taxpayer via an audit, or if the tax type is currently under audit; and issues already clearly defined in existing law.

3. I am a business that plans to do business in San Francisco but is not currently doing so. May I apply for an AWD? 

Yes, this is acceptable for an AWD, but the application must include facts about intended business operations in San Francisco.

4. What if I receive an AWD I don’t agree with it?

AWDs cannot be appealed.  Penalties will apply if the taxpayer does not follow an issued AWD absent any material change in facts or applicable laws. However, in any future year, if the taxpayer disagrees with a decision as applied to the taxpayer’s future facts and circumstances, the taxpayer should file as instructed in the AWD and may request a refund and Tax Collector hearing to appeal the position for that tax year. 

5. I was rejected for an AWD - how should I file?

If you request an AWD but are rejected, that will have no impact on penalties.  Any imposition of penalties will still depend on whether the taxpayer’s failure to timely pay, remit, collect, or report the tax liability, the failure to file a return, or the failure to otherwise comply with the provisions of the Business and Tax Regulations Code was due to reasonable cause and circumstances beyond the taxpayer’s control, and occurred notwithstanding the exercise or ordinary care and in the absence of willful neglect. 

6. I requested an AWD and received one, and I am following the AWD – would any penalties apply for future filings?

No penalties would apply to future tax filings regarding the issues covered in the AWD, as long as the facts and law remain materially similar to those described in the decision.    

7. May a business, trade, or industrial organization or similar group apply for an AWD concerning the application of tax laws to members of the group?

No. AWDs are only available for individual taxpayers, but groups may contact the Office of the Treasurer & Tax Collector independent of the AWD process.   

A taxpayer, potential taxpayer, or a representative may apply using the online form. A representative may apply on behalf of a taxpayer or potential taxpayer, but the identity of the taxpayer or potential taxpayer must be disclosed in the application.

Applicants must provide:

• A detailed statement of facts relevant to the request; and
• A proposed resolution for the tax issue.

AWDs will not be issued to business, trade, or industrial associations, or to similar groups concerning the application of tax laws to members of the groups, but groups may submit issues to the Office of the Treasurer & Tax Collector independent of the AWD process. 

Within 30 days of application, applicants will be informed if their request is:

• Accepted
• Rejected
• Declined due to lack of capacity.  The application fee will be refunded for any declined applications.

Selection Criteria

The Office of the Treasurer & Tax Collector anticipates selecting a maximum of 30 cases annually based on a number of factors, including but not limited to:

• Relevance to multiple taxpayers or classes of taxpayers
• Significant monetary or tax consequences
• First-time applicant status
• Businesses currently doing business in San Francisco versus intending to do business

Rejection Criteria

Applications will be rejected if they:

• Present hypothetical scenarios.
• Address issues previously audited by the office for the taxpayer, or if the tax type is currently under audit.
• Fall outside the subject matter scope.
• Address issues clearly defined in existing laws.

Accepted applications will receive a decision by January 31 of the following year. The AWD will be issued on a rolling basis, with applicants notified promptly if additional clarification is needed.

If a taxpayer does not follow the AWD in a subsequent tax return, the taxpayer may be subject to additional tax, penalties, and interest. Taking a different position than the AWD will be considered to be within the taxpayer’s control and therefore not eligible for penalty waiver. 

If there is a material change in facts or law, the taxpayer should either:

1. Seek another AWD based on the changed facts and/or law, or
2. File and pay taxes as instructed in the existing AWD and request a refund based on the changed facts and/or law. 

AWDs are not binding on other taxpayers. 

All AWD decisions will be redacted in an effort to protect the taxpayer’s identity, and published on our website, ensuring accessibility and clarity for taxpayers. Taxpayers will have the opportunity to see the redacted version prior to publication, but the Office of the Treasurer & Tax Collector reserves all rights to determine what information is redacted in the published AWD.