Help with Sales Tax Audit Florida + Expert Affordable CPA’s, Former Agents We Know the System

November 16, 2017
Written by: Fresh Start Tax
Fresh Start Tax

 

We are a full-service Audit Defense tax firm. IRS & Sales Tax Defense, Since 1982. We can Help you Though Your Sales Tax Audit.

 

On staff CPAs, former IRS agents, managers and teaching instructors, very simply put we know the system and are available for free initial tax consultation to review and advise you on the best possible tax strategies for a state of Florida sales tax audit.

There are some things that you need to know during a Florida sales tax audit.

Below you will find some information relative to your audit.

It is best to have a tax representative go in for your audit.

As former IRS agents I can tell you that the government employee loves for taxpayers to go in undefended because they pretty much can have their way.

Give us a call and we will give you a free consultation and advise you on how to best handle your Florida sales tax audit.

The methods of audit selection vary by tax. Some examples of sources used for audit selection are:

• Internal Revenue Service (IRS) information
• Information sharing programs with other states and state agencies
• Computer-based random selection
• Analysis of Florida tax return information

 

• What types of records will I need to provide?

• When notified of the Department’s intent to audit, you will be informed as to what records you will need to provide.

The types of records needed may include, but are not limited to:

• General ledgers and journals
• Cash receipt and disbursement journals
• Purchase and sales journals
• Sales tax exemption or resale certificates
• Florida tax returns
• Federal tax returns
• Depreciation schedules
• Property records
• Other documentation to verify amounts entered on tax returns

• You must keep your records for three years for auditing purposes.

The Department may also audit for periods longer than three years if you did not file a return or payment, or filed a return or payment that was substantially incorrect.

 

• What are my rights during an audit?

• The Florida Taxpayer’s Bill of Rights (GT-800039 ) included in Section 213.015, Florida Statutes, explains the rights and obligations of the taxpayer and the Department.

Your rights include:

• The right to fair and consistent application of tax laws.
• The right to get available information and prompt, accurate responses to your questions.
• The right to have the Department begin and complete its audit in a timely manner following notifications of the intent to audit.
• The right to receive simple, nontechnical statements which explain the reason for audit selection and the procedures, remedies, and rights available during audit, appeals, and collection proceedings.

 

Can I request technical assistance during the audit?

When an auditor and a taxpayer agree on the facts of an audit case, but disagree on how tax law should be applied to the case, the taxpayer can request an opinion on the application of law to a specific set of facts.

The Department’s office of Technical Assistance and Dispute Resolution will issue a Technical Assistance Advisement (TAA), which is binding on the Department.

For more information, read Requesting Advice During an Audit (GT-800061 ).  The Department’s Revenue Law Library can help you research the issue before requesting technical assistance.

 

What happens when the audit is complete?

After the audit is complete, you may review the audit findings and proposed changes.  The auditor will give you a copy of the work papers and explain your rights, including deadlines for filing protests.

If you agree with the audit findings, you are expected to pay the amount due in full, if any.  You have the right to protest the proposed changes if you disagree with them.

 

Other Audit-Related Information

Auditing in an Electronic Environment (e-Auditing) (GT-800050 ) contains details regarding a computer-assisted audit using electronic records to complete all or part of the audit. If you use a computer to record your business activity and keep this data electronically, you are eligible for an electronic audit.

The Department prefers to examine electronic records because it is the most accurate and efficient method of conducting an audit.

The Certified Audit Program (GT-800065 ) is a cooperative effort between the Florida Department of Revenue and the Florida Institute of Certified Public Accountants (FICPA).

If you have not received a Notice of Intent to Audit Books and Records from the Department, you may be eligible to participate.

The program gives you the opportunity to hire a qualified CPA firm to review your sales and use and local option tax compliance.  As an incentive, the Department waives penalties and reduces interest if tax is due.

The Voluntary Disclosure Program allows you to report previously unpaid or underpaid tax liabilities for any tax administered by the Florida Department of Revenue.

Once you have paid the tax and interest, the Department will waive the penalties.  If you believe you might owe back taxes and the Department has not contacted you about the liability, you may be eligible for the Voluntary Disclosure Program.

 

Tax Clearance Letter, Certificate of Compliance, or Transferee Liability Certificate:

When buying a Florida business, the purchaser should ask the seller for documentation of any tax, penalty, or interest due to the Florida Department of Revenue. A business owner can use a Certificate of Compliance as proof of good standing with the Department.
Self-audit or self-analysis projects are used to educate taxpayers on issues related to a particular compliance problem or industry.

The Department sends selected taxpayers information about a specific tax or issue, user-friendly instructions, and simple worksheets.

The Department asks the taxpayer to review the materials, complete the worksheets, calculate any additional tax due, and return the paperwork with payment, if needed.

The auditor has limited contact with the taxpayer and does not visit the taxpayer’s location.

The Department generally accepts the taxpayer’s responses.

However, participation in a self-audit/self-analysis does not exempt the taxpayer from further audit review of the same time period.

Sales Tax Audit, State of Florida + What You Need To Know + Former Agents

Filed Under: Tax Help
Tags:

FREE

Consultation

No Obligation
We are here to help!

  • Should be Empty:
“Thanks to Fresh Start, I am feeling more and more confident about finally getting caught up after all these years.”
M. Johnson

“I will certainly refer anyone I come across who needs your services for sure.”
Jody and Don

“I cannot thank you enough for handling my IRS issues. After dealing with another office who did nothing, you guys did everything that you promised. Thanks again, especially Steve Jacob for guiding me every step of the way.”
Jerry H.