Florida Sales Tax Audit Defense
Hire Former Sales Tax Agents who know the system.Frank Lamantia was a Former Agent with over 16 years of direct working experience with the Florida Department of Revenue.
Is your business being audited for Florida sales and use tax?
Has the Florida Department of Revenue contacted your company about a Florida sales and use tax audit or have you already received the Florida form DR 840 – Notice of Intent to Audit Books and Records?
Beware:
The Florida Department of revenue will use every effort to intimidate you in order to collect tax, penalty and interest from your business.
Do not be bullied by a Florida tax agent.
We are a full-service tax firm that specializes in everything from IRS bills and notices and state warrants to tax records.
We are comprised of tax attorneys, tax lawyers, certified public accountants, enrolled agents, former IRS agents, former state of Florida auditor, managers and tax instructor’s.
Businesses and individuals that the DOR suspects have avoided for tax payment are targeted, but any business with significant business activity can expect to be audited eventually.
Lately we’ve seen the DOR target entire industries such as convenience stores, restaurants and bars, hotels, and manufacturers.
But let it be known that audits are also randomly selected or could have been turned in by a former employee or customer for the tax issue.
The auditor will ask for all kinds of records that they are not necessarily entitled to have such as electronic copy of your whole accounting records.
The auditor will also ask you to sign certain documents that could wave your rights as a taxpayer, such as agreeing to the states sample method.
Most of the time the auditor is chasing a lead that may not prove to generate any revenue for the state but in the chase they usually find other tax issues.
Companies that have done everything they can to comply with the Florida tax laws can still end up with serious complications on a Florida sales and use tax audit just because the auditor’s job is to find deficiencies.
Insider Tips:
As a former Florida sales tax agent I can tell you in advance what type of questions the auditor will ask, how the auditor will conduct the audit, what the auditor will focus on and what types of documentation will be examined.
Remember that the auditor’s job is to find unreported or underreported revenue and use tax from purchases that did not have the proper sales tax paid and therefore the questions will be focused aggressively in the areas of high dollar recovery.
On sales expect the auditor to focus on these issues:
• review internal controls for a recorded/undocumented sales
• sales on the books as compared to sales per state tax returns
• sales per the federal income tax returns compared to sales per the state tax return
• deposits per bank statements compared to sales per sales tax return
• an analysis of the sales tax payable account to the sales tax actually remitted
• verify that tax being collected is at the correct rate for the locations
• review a representative test for each revenue account
 

On the use tax side the auditor will focus on these issues:

• purchases from out-of-state vendors of items that were not resold to customers
• review depreciation schedules and/or check register for assets purchased during the audit
• review County tangible personal property tax returns for asset acquisitions
• purchase of fixed assets and fixed asset additions
• Internet purchases
• verify and trace accruals from source documents to general ledgers and sales tax reports
• analyze consumables pulled from inventory
• analyze leases of tangible personal property for compliance
 

For commercial rent the auditor will focus on:

• rental income – ensure tax was collected on all components of the rent
• rental expense – ensure tax was paid on all components of rent
• on rent paid – ensure that the landlord is properly registered with the state of Florida
Our staff consists of tax attorneys, certified public accountants, Florida 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 on how to fully resolve your sales tax audit case.
Florida Sales Tax Audit Defense