Florida Tax Audit Help –Restaurants/Bars

We are a Florida Tax firm that specializes in Sales Tax Audits on Restaurants and Bars.
Florida Sales Tax Audit Defense – Florida Department of Revenue Audit Representation for the Restaurant and Bar Industry.
Being a former sales tax on you should know that the Florida Department of revenue uses special audit technique guides to go ahead and conduct a sales tax audit for restaurants and bars.
As Former Agents  have audited hundreds of bars and restaurants in the state of Florida in here are some here is some information you may want to know.
 

Insider Tips by  Frank Lamantia a Former State Tax Auditor and consultant with FST.

Florida passes record $74.5 billion spending budget for fiscal year 2013-2014 that will be more than $4 billion higher than the fiscal year 2012-2013 spending.
Gov. Rick Scott’s office announced plans to discuss cutting taxes and fees with Florida residents. Scott announced he proposes to cut taxes by $500 million for the next fiscal year, but early on in the budget cycle, hasn’t released details about his plans.
With spending increases and cutting taxes there is only one way to balance the budget – Looking for Low Hanging Fruit through an Audit of Your Business  and the state of Florida Department of revenue certainly knows there’s a lot of low hanging fruit in the restaurants and bar industry because of unreported sales tax.
Because of this audit potential and many revenue dollars available the restaurant and bar industry, a major source of audit assessments will see an increase in audit activity to generate funds to cover the increased spending budget and the reduced taxes and fees.
 

Voluntary Disclosure:

 
If you have been under reporting or not reporting and you have not received a notice of audit, it is highly recommended that you contact our firm and we will assist your restaurant/bar in the process of going through a voluntary disclosure program to come clean now with the Florida Department of revenue, have most of the penalties waived and prevent it from becoming criminal.
 

Methods of Operations for Restaurants and Bars for Sales Tax Audits

Restaurants
Restaurants range in size from small mom-and-pop operations to the national chains. All operate generally the same way, selling repaired food for consumption on or off the premises.
A large number of restaurants also operated lounges, in connection with the restaurant. These restaurants may operate in a number of different ways.
Some serve alcoholic beverages with the food, as a part of the restaurant and some operated lounges that are completely separate operations from the restaurant. Some also offer entertainment and dancing, and a cover charge is sometimes imposed.
The primary statute related to restaurants is Section 212.08(1)(c), F.S., and the primary rule is Rule 12A-1.011 F.A.C.

Bar/Lounges/Package Stores

The operations of the bar will very they could sell prepared food and offer entertainment and dancing. They may also charge patrons a cover charge. The bar/lounge may also sell other items in addition to alcoholic beverages, such as picnic supplies, food, ice, T-shirts and a variety of party items.
The bar/lounge and package store may be located in the same building but in different rooms. Separate cash registers may be used for the bar/lounge and package store, or sometimes the same register will be used for both operations.
 

Bars/Lounges

The dealer may record each sale and add the tax to the selling price. This results in the dealer reporting all taxes collected. The dealer may inform customers that the selling price includes the tax (putting them on notice).
To do this, signs must be posted throughout the establishment that can be seen by all customers when ordering drinks.
If the dealer selects this mess method, the tax to be reported will be calculated in the following manner:
Bars and/or cocktail lounge should divide their gross receipts by 1.0659, the result being the gross sales amount; the difference between the gross receipts amount in the gross sales tax amount should be reported as tax collected.
A combined bar and package store (operated as a single unit), which used the same method as bars and cocktail lounges.
Example: a bar has gross receipts of 32,585.50 including tax, and signs are posted. therefore tax due would be computed as follows: 32,545.50÷1.0659 equals 30,533.35 gross sales… 32,545.50 less 30,533.35 = $2012.15 tax due.
The dealer may choose to set different prices that do not include tax and do not post signs to inform customers that tax is being collected, thus excluding tax from the price if this method is selected, the dealer would calculate and report the tax as follows:
• bars and or cocktail lounges should multiply their gross receipts by 0.0659 and report the results as tax due
• a combination bar and package store where the operations are not separated, which used the same method as the bar and cocktail lounge
• Example: no signs are posted in gross receipts are 32,545.50. Computation would be 32,505.50 x .0659 = 2144.75 tax due.
In this example, gross receipts are equivalent to gross sales because tax was not charged on the sale.
A bar or cocktail lounge may operate a packaged the bar/lounge offer drinks for consumption on the premises and the package store will offer package goods to take out.

Bars and Package Stores

 
Bars, package stores, and combinations that do not separately record the sales price and in tax are required to remit the tax on the percentage gross receipts.
The applicable percentages are:
• 6.35% for package stores
• 6.59% for bars and bar/package store combinations
When the taxpayer can demonstrate that the customers had been informed that the price charged includes the tax, the gross receipts may be reduced by the amount of the tax (See Rule 12A-1.057, F.A.C.).

Package Stores

Facilities/Operations that do not sell by the drink for consumption on the premises will be considered a package store. These type operations offer only items to be taken out. In addition to alcoholic beverages, they will offer items such as picnic supplies, food, ice, T-shirts, hats and party items for sale.
The dealer may record each sale and add the tax to the selling price.
This results and the dealer reporting all taxes collected
The dealer may inform his customers that the selling price includes the tax thereby putting them on notice. To do this, signed must be posted throughout the establishment that can be seen by all customers making purchases.
If the dealer selects this method, the tax to be reported will be calculated by dividing their gross receipts by 1.0635, the results being the gross sales amounted; the difference between the gross receipts amount in the gross sales about should be reported as tax collected.
The dealer may choose to set prices that do not include tax and not post signs informing customers that tax is being collected thus excluding tax from the price. If this method is selected, the dealer would multiply their gross receipts by 0.0635 and report result as tax due.
 

Florida Restaurants and Bars – Tax Audit Defense

We are a full-service tax firm that specializes in federal and State tax representation and are one of Florida’s most experienced for sales tax audit defense.
Our staff consists of tax attorneys, certified public accountants, former IRS agents and a former sales tax auditor with over 16 years of direct work experience with the Florida Department of revenue.
Feel free to contact us for initial tax consulting for Florida sales tax audit defense.
We will completely review your case and give you a full assessment of your audit status so you can make an informed and confident decision of how to fully resolve your sales tax audit case
If you are going through a sales tax audit contact us today and speak to a former Florida sales tax agent, attorney, and Certified Public Accountants who could limit your exposure.
We are A+ rated by the Better Business Bureau and have been in practice in the State of Florida since 1982.
 
Florida Sales Tax Audit Help – Restaurants/Bars