by Fresh Start Tax | Nov 21, 2017 | Tax Help
EDD Employment Tax Audit Experts and Specialists, Stop the Worry!
The California Employment Tax Audit
The Internal Revenue Service and the state of California have the right to audit companies that have employees. One of the things an experienced professional firm can do is to limit the exposure during in employment tax audit.
Many times the government employee conducting the audit cando is to expand the audit to do a full-scale audit on all business activities.
The representatives that come out to do employment tax audits are specialist in their area and had been specially trained for badges of fraud and other issues, I know is I was one of those persons when I work for the federal government.
Many different things can trigger a California employment tax audit.
Some of the events that may trigger a tax audit:
1. Sometimes matching forms do not make sense,
2. Year end reports with other government agencies do not match up,
3. Sometimes a scorned employee,
4. Many times a hurt spouse can start any investigation,
5. Businesses and corporations may face an audit due to random chance or because their time for an audit has come.
As a former IRS agent and teaching instructor many things can kick out these audits. Most of the time red flags do occur.
Caution: Anyone undergoing an audit, make sure you are absolutely truthful to make sure this audit stays on a civil basis and does not turn to criminal. Always be truthful during your EDD for IRS payroll tax audit.
Classification is common during these audits.
With that said what are common tests of employees vs employer. These are the famous common law tests.
1. Instructions:
Employees.
An employee is required to comply with instruction about when, where, and how to work. Even if no instructions are given, the control factor is present if the employer has the right to give instructions.
Independent Contractor (“IC’s”). IC’s determine on their own on how they will proceed in accomplishing an assigned task. An IC is under no obligation to comply with instructions as to how to perform an assigned task, only that they accomplish it.
2. Training:
Employees.
An employee is trained to perform services in a particular manner.
Independent Contractors. IC’s ordinarily use their own methods to accomplish the required task and receive very little or no training from the party which retains their services.
3. Integration:
Employees.
An employee provides services that are an integral part of the employer’s operations.
Independent Contractors. IC’s services are generally not part of the core operations of the engaging party.
4. Services rendered personally:
Employees.
Employees are personally required to perform their services and may not assign another individual to perform their tasks.
Independent Contractors. IC’s may or may not personally render the required services, as they are permitted to engage others to do the work.
5. Hiring assistant:
Employees.
An employee works for an employer that directly hires, supervises, and compensates the individuals performing the work. Employees do not hire assistants to help perform the required task.
Independent Contractors. An IC may hire, supervise, and pay assistants under a contract that requires the former to provide materials and/or labor, and is responsible for the contracted results.
6. Continuing relationship:
Employees.
An employee has a continuing relationship with an employer on what is hoped to be a long-term basis.
Independent Contractors. IC’s typically enter temporary relationships and move from assignment to assignment.
7. Set hours of work:
Employees. An employee has set hours of work established by an employer.
Independent Contractors. IC’s are masters of their own time; they set their own hours of work.
8. Full-time work:
Employees.
An employee normally works full-time for an employer.
Independent Contractors. IC’s work when and for whom they choose; and may be engaged by more than one entity at one time.
9. Work done on premises:
Employees. An employee works on the premises of an employer, or works at a location chosen by the employer.
Independent Contractors. IC’s typically work off the engaging firm’s premises, unless the particular tasks need to be done at the engaging firm’s place of business.
10. Order or sequence set:
Employees.
An employee performs services in the sequence set by an employer, a manifestation of the employer’s direction and control over the method used to perform the work.
Independent Contractors. IC’s decide the method to be used in performing the required task, including the sequence of activities.
11. Reports:
Employees.
An employee submits interim reports to an employer to keep the employer informed as to the method being used to perform the work. This reporting obligation tends to demonstrate that the individual is subject to direction and control.
Independent Contractors. IC’s generally do not submit interim reports; they are only responsible for reporting completion of the work.
12. Payments:
Employees.
An employee is paid by the hour, week, or month.
Independent Contractors. IC’s are normally compensated by a flat rate for a project or a manner different from the engaging firm pays its employees. However, if the general practice in certain trades and professions is to pay on the basis of a unit of time, the method of payment will not be given great weight.
13. Expenses:
Employees.
An employee’s business and travel expenses are paid for by an employer.
Independent Contractors. Typically, IC’s pay their own business and traveling expenses. However, it is customary in certain trades and professions for IC’s to bill their clients for disbursements such as travel, photocopying and other incidental expenses. Payment of disbursements in addition to the fee for services, does not create an employment relationship.
14. Tools and materials:
Employees.
An employer furnishes employees the necessary tools, material, and other equipment needed to complete the task.
Independent Contractors. IC’s generally furnish their own tools and materials.
15. Investment:
Employees.
Employees generally have no investment in equipment or facilities. This demonstrates a lack of interdependence from the hiring firm and is additional indication of an employer-employee relationship.
Independent Contractors. IC’s have an investment in the equipment and facilities used in their line of work.
16. Profit or loss:
Employees.
Employees are typically paid for their time and labor and are not responsible for ensuring that their revenue exceeds their expenses.
Independent Contractors. For an IC, a given assignment presents an opportunity for a profit (revenue exceeding expenses) or a loss (expenses exceeding revenues). In other words, there is risk and reward associated with being an IC.
17. Works for more than one person or firm:
Employees.
While an employee can have more than one job at a time, employers can demand exclusive employment and prohibit an employee from working for another employer.
Independent Contractors. IC’s usually offer their services to multiple, unrelated entities at the same time. Having more than one client or customer at a particular time is persuasive evidence of IC status.
18. Offers services to general public:
Employees.
Employees offer their services only to their employers.
Independent Contractors. IC’s offer their services to the general public.
19. Right to fire:
Employees.
An employee can be terminated by an employer.
Independent Contractors. An IC can be only terminated in accordance with terms of the agreement of engagement. For example, an IC who fails to perform in accordance with the contract terms is in breach, which may be a basis for termination.
20. Right to quit:
Employees. An employee can quit his or her job at any time without incurring liability for uncompleted tasks or assignments.
Independent Contractors. An IC usually agrees to perform a specific task and is responsible for its satisfactory completion, or is legally obligated to take responsibility for the damages caused by their failure to complete the job. Right to quit.
California Employment Development Department.
What are some of the most common mistakes found in a tax audit????
A. Mis- Classification of workers.
Some companies want to save on employee costs by classifying employees as independent contractors. is much easier for a company to pay via a 1099 to avoid many taxes versus putting them as full-time employees.
B. Excessive use of cash in the business.
Some industries rely more so on cash transactions than others. However the IRS and EDD recognize that cash is more prone to abuse, concealment, and other wrongdoing. Thus, businesses that rely heavily on cash, even legitimately, face higher odds of an employment tax audit. There various sources in ways that IRS can find out if a company is relying heavily on cash.
C. Use of business funds to cover personal expenses.
CEO’s, managers, and company presidents who lose sight of the line that divides personal assets and expenses from business assets and expenses. For instance, individuals who embezzle funds from their company or who characterize personal trips as business retreats can face serious charges.
D. Failure to keep sufficient/adequate business records.
Employment and tax records must be kept by businesses for a certain number of years. If your company is audited, you will need to rely on these records to show your compliance with all employment tax obligations.
California Employment Development Division (EDD) Handles Employment tax and Payroll Tax
While the IRS handles the administration of the federal employment tax obligations, the Employment Development Division handles the state-based employment tax obligation in California.
The IRS & EDD typically requires an in-person meeting where they will take a tour of the business facilities. They very much act like an IRS auditor revenue agent during this process. Good agents make a full examination of the business, they keep their eyes out for everything.
Oftentimes, the IRS or EDD agent will conduct an informal interview with the individual giving the tour including the individual’s role in the company, the business the company is engaged in, and the markets and places where the company’s goods and services are sold. Sometimes they may want to ask employees questions.
A TAX TIP. As a former IRS agent make sure you walk with them and let your representative answer the questions. You do not want to fall into a government trap question.
What Records are required for a California or Federal Employment Tax Audit?
A California or IRS employment tax audit will typically begin with an in-person tour and interview of the facility by the auditing agent. The audit process truly begins at this stage as the auditor is detailed oriented and will take note of the scope and scale of your operations.
EDD and IRS may ask to see one year of records or they may expand the investigation of three years and IRS can expand it to a fourth-year depending on the omissions that they find if there are any.
California does provide for a list of minimum required business records as set forth by Sections 1085 and 1092 of the CUIC.
These records include:
• Annual financial statements,
• Ledgers,
• Check registers,
• Check stubs,
• Bank statements,
• Federal and state income tax returns,
Note: They may also asked for all electronic records pertinent to the above. This is not a comprehensive list.
The EDD may also request additional records for payroll purposes including state and federal tax forms such as W-2s, W-3’s ,W-4s, DE-9s, DE-7s, DE-4 and other documents.
Having former IRS agents and auditors on staff, we know exactly what government agencies look for during the time of their audit.
Call us today for a free initial tax consultation. 1-866-700-1040
by Fresh Start Tax | Nov 21, 2017 | Tax Help
We are affordable tax firm that can resolve any IRS tax debt or tax filing problem. Experts in IRS & State Tax Problems. We are a Christian Tax Firm <><.
Proverbs 12:15
The way of a fool is right in his own eyes, But a wise man is he who listens to counsel.
Proverbs 11:14
Where there is no guidance the people fall, But in abundance of counselors there is victory.
We are a full service Christian tax firm that specializes in corporate and business tax problems. On staff are CPAs and former IRS agents. We are the affordable tax experts who deal in IRS and state tax problems.
We know the system because we have over 95 years of direct working knowledge being former IRS agents. We are one of Florida’s premier and affordable tax and business services firm.
We know the system inside and out and know the fastest, quickest and most affordable way to completely and permanently relieve you of taxes owed to the Internal Revenue Service on back taxes. We know all the settlement options.
You can call us today for a free initial tax consultation and we can give you a free assessment on your case. Hear the truth from true tax experts.
As former IRS agents supervisors and teaching instructors we had great value to any taxpayer trying to sort out the different options they have with IRS if you owe back taxes have back tax debt, or have to file back tax returns.
We deal with all type of issues from IRS business and corporate tax resolution to dealing with sales tax issues.
IRS Tax Debt Consolidation + Settlement Options + Back IRS Taxes Owed
When the Internal Revenue Service works case they keep a couple of factors in mind. First of all your tax returns must be filed and you must be in full compliance with all individual and business taxes. IRS will work all your cases at one time if their outstanding all the debt in all the nonfiling issues will be brought together in one case. IRS immediately pulls transcription & summary of your cases before they develop an exit in closing strategy.
Important : IRS Tax Debt Consolidation will depend on your current financial statement. The internal revenue system is dependent on the review, the credibility and in-depth analysis of your current assets and income.
Having the knowledge and experience of the system is the first step to finding a permanent resolution to your IRS tax problem.
The first option always is to see if you can settle your tax debt through pennies on the dollar through the offer in compromise program.
Our firm has a distinct advantage over other forms as I am a former IRS teaching agent of the offer in compromise program when employed at Internal Revenue Service.
We will review with you the very specifics of your tax issue or back tax problem and after a careful review of your exit strategy and your financial statement, we can come up with the best strategy to reduce your tax debt, manage the IRS and handle all the representation for affordable fees and prices.
When IRS takes a current financial statement to make a determination on how they will treat you as a taxpayer there are basically three options available for you to take care of your back tax matter:
1. Internal Revenue Service puts 40% of all open cases into currently not collectible status which stay there for approximately a year, or,
2.6.5 million people enter into installment payments based on their current financial statements as IRS carefully looks at your income and necessary living expenses.
3. The last option and the best option is to settle your debt to pennies on the dollar through the offer in compromise program.
Last year 38,000 offers in compromise were accepted for an average settlement of $4000 per case.
Please keep in mind this is completely dependent on the current financial statement that IRS reviewed and accepted.
Payment Plan, Installment Agreements & Settlement Options for Back Taxes
There are many factors that determine payment plan and settlement options.
The Internal Revenue Service when exploring a payment plan option with the taxpayer will look at the amount due, making sure all tax returns are current and up-to-date and will look on the amount of money the taxpayer wants to pay back depending on statutory periods of time.
When you call our office we will review with you the three different options you have available to make a payment plan and get the one you want not, the one forced on you by Internal Revenue Service.
As a former IRS agent, I can tell you that Internal Revenue Service tries to enforce their will and extracting money from taxpayers trying to collect money they do not have.
Knowing all the procedures and the options you have available and the rights you have, we can make sure you are treated fairly and that you have the best possible payment agreement you can get based on your current financial statement and living expenses.
When you use our firm, you do not have to fear being bullied by the Internal Revenue Service, we know their systems inside and out.
It is necessary for you to know that all your tax returns will need to be filed for IRS to close out your case. IRS expects each taxpayer who owes back tax debt to be in full compliance before they will resolve their tax issue.
If you have returns are not filed we can prepare those with little or no records.
Call us today for a free initial tax consultation assessment and let’s find out how we can get your case closed for affordable pricing.
Pleasease feel free to come by her offices and visit us today.
Business Tax Problem CPA’s + Affordable Experts IRS & Sales Tax Problems + Christian Taxes Company <><
by Fresh Start Tax | Nov 21, 2017 | Tax Help
We are affordable tax firm that can resolve any IRS tax debt or tax filing problem. Experts in IRS & State Tax Problems. A Local tax firm. 954-328-3501
We are a full service tax firm that specializes in corporate and business tax problems. On staff are CPAs and former IRS agents. We are the affordable tax experts who deal in IRS and state tax problems.
We know the system because we have over 95 years of direct working knowledge being former IRS agents. We are one of Florida’s premier and affordable tax and business services firm.
We know the system inside and out and know the fastest, quickest and most affordable way to completely and permanently relieve you of taxes owed to the Internal Revenue Service on back taxes. We know all the settlement options.
You can call us today for a free initial tax consultation and we can give you a free assessment on your case. Hear the truth from true tax experts.
As former IRS agents supervisors and teaching instructors we had great value to any taxpayer trying to sort out the different options they have with IRS if you owe back taxes have back tax debt, or have to file back tax returns.
We deal with all type of issues from IRS business and corporate tax resolution to dealing with sales tax issues.
IRS Tax Debt Consolidation + Settlement Options + Back IRS Taxes Owed
When the Internal Revenue Service works case they keep a couple of factors in mind. First of all your tax returns must be filed and you must be in full compliance with all individual and business taxes. IRS will work all your cases at one time if their outstanding all the debt in all the nonfiling issues will be brought together in one case. IRS immediately pulls transcription & summary of your cases before they develop an exit in closing strategy.
Important : IRS Tax Debt Consolidation will depend on your current financial statement. The internal revenue system is dependent on the review, the credibility and in-depth analysis of your current assets and income.
Having the knowledge and experience of the system is the first step to finding a permanent resolution to your IRS tax problem.
The first option always is to see if you can settle your tax debt through pennies on the dollar through the offer in compromise program.
Our firm has a distinct advantage over other forms as I am a former IRS teaching agent of the offer in compromise program when employed at Internal Revenue Service.
We will review with you the very specifics of your tax issue or back tax problem and after a careful review of your exit strategy and your financial statement, we can come up with the best strategy to reduce your tax debt, manage the IRS and handle all the representation for affordable fees and prices.
When IRS takes a current financial statement to make a determination on how they will treat you as a taxpayer there are basically three options available for you to take care of your back tax matter:
1. Internal Revenue Service puts 40% of all open cases into currently not collectible status which stay there for approximately a year, or,
2.6.5 million people enter into installment payments based on their current financial statements as IRS carefully looks at your income and necessary living expenses.
3. The last option and the best option is to settle your debt to pennies on the dollar through the offer in compromise program.
Last year 38,000 offers in compromise were accepted for an average settlement of $4000 per case.
Please keep in mind this is completely dependent on the current financial statement that IRS reviewed and accepted.
Payment Plan, Installment Agreements & Settlement Options for Back Taxes
There are many factors that determine payment plan and settlement options.
The Internal Revenue Service when exploring a payment plan option with the taxpayer will look at the amount due, making sure all tax returns are current and up-to-date and will look on the amount of money the taxpayer wants to pay back depending on statutory periods of time.
When you call our office we will review with you the three different options you have available to make a payment plan and get the one you want not, the one forced on you by Internal Revenue Service.
As a former IRS agent, I can tell you that Internal Revenue Service tries to enforce their will and extracting money from taxpayers trying to collect money they do not have.
Knowing all the procedures and the options you have available and the rights you have, we can make sure you are treated fairly and that you have the best possible payment agreement you can get based on your current financial statement and living expenses.
When you use our firm, you do not have to fear being bullied by the Internal Revenue Service, we know their systems inside and out.
It is necessary for you to know that all your tax returns will need to be filed for IRS to close out your case. IRS expects each taxpayer who owes back tax debt to be in full compliance before they will resolve their tax issue.
If you have returns are not filed we can prepare those with little or no records.
Call us today for a free initial tax consultation assessment and let’s find out how we can get your case closed for affordable pricing.
Please feel free to come by her offices and visit us today.
Business Tax Problem CPA’s + Affordable Experts IRS & Sales Tax Problems + Ft.Lauderdale, Miami, West Palm Beach
by Fresh Start Tax | Nov 21, 2017 | Tax Help
We are affordable tax firm that can resolve any IRS tax debt or tax filing problem. Experts in IRS & State Tax Problems.
We are a full service tax firm that specializes in corporate and business tax problems. On staff are CPAs and former IRS agents. We are the affordable tax experts who deal in IRS and state tax problems.
We know the system because we have over 95 years of direct working knowledge being former IRS agents. We are one of Florida’s premier and affordable tax and business services firm.
We know the system inside and out and know the fastest, quickest and most affordable way to completely and permanently relieve you of taxes owed to the Internal Revenue Service on back taxes. We know all the settlement options.
You can call us today for a free initial tax consultation and we can give you a free assessment on your case. Hear the truth from true tax experts.
As former IRS agents supervisors and teaching instructors we had great value to any taxpayer trying to sort out the different options they have with IRS if you owe back taxes have back tax debt, or have to file back tax returns.
We deal with all type of issues from IRS business and corporate tax resolution to dealing with sales tax issues.
IRS Tax Debt Consolidation + Settlement Options + Back IRS Taxes Owed
When the Internal Revenue Service works case they keep a couple of factors in mind. First of all your tax returns must be filed and you must be in full compliance with all individual and business taxes. IRS will work all your cases at one time if their outstanding all the debt in all the nonfiling issues will be brought together in one case. IRS immediately pulls transcription & summary of your cases before they develop an exit in closing strategy.
Important : IRS Tax Debt Consolidation will depend on your current financial statement. The internal revenue system is dependent on the review, the credibility and in-depth analysis of your current assets and income.
Owe Back Taxes = Settlement Options
Having the knowledge and experience of the system is the first step to finding a permanent resolution to your IRS tax problem.
The first option always is to see if you can settle your tax debt through pennies on the dollar through the offer in compromise program.
Our firm has a distinct advantage over other forms as I am a former IRS teaching agent of the offer in compromise program when employed at Internal Revenue Service.
We will review with you the very specifics of your tax issue or back tax problem and after a careful review of your exit strategy and your financial statement, we can come up with the best strategy to reduce your tax debt, manage the IRS and handle all the representation for affordable fees and prices.
When IRS takes a current financial statement to make a determination on how they will treat you as a taxpayer there are basically three options available for you to take care of your back tax matter:
1. Internal Revenue Service puts 40% of all open cases into currently not collectible status which stay there for approximately a year, or,
2.6.5 million people enter into installment payments based on their current financial statements as IRS carefully looks at your income and necessary living expenses.
3. The last option and the best option is to settle your debt to pennies on the dollar through the offer in compromise program.
Last year 38,000 offers in compromise were accepted for an average settlement of $4000 per case.
Please keep in mind this is completely dependent on the current financial statement that IRS reviewed and accepted.
Payment Plan, Installment Agreements & Settlement Options for Back Taxes
There are many factors that determine payment plan and settlement options.
The Internal Revenue Service when exploring a payment plan option with the taxpayer will look at the amount due, making sure all tax returns are current and up-to-date and will look on the amount of money the taxpayer wants to pay back depending on statutory periods of time.
When you call our office we will review with you the three different options you have available to make a payment plan and get the one you want not, the one forced on you by Internal Revenue Service.
As a former IRS agent, I can tell you that Internal Revenue Service tries to enforce their will and extracting money from taxpayers trying to collect money they do not have.
Knowing all the procedures and the options you have available and the rights you have, we can make sure you are treated fairly and that you have the best possible payment agreement you can get based on your current financial statement and living expenses.
When you use our firm, you do not have to fear being bullied by the Internal Revenue Service, we know their systems inside and out.
It is necessary for you to know that all your tax returns will need to be filed for IRS to close out your case. IRS expects each taxpayer who owes back tax debt to be in full compliance before they will resolve their tax issue.
If you have returns are not filed we can prepare those with little or no records.
Call us today for a free initial tax consultation assessment and let’s find out how we can get your case closed for affordable pricing.
Business Tax Problem CPA’s + Affordable Experts IRS & State Problems
by Fresh Start Tax | Nov 20, 2017 | Tax Help
If you are having a problem with any Florida sales or use tax issue call us today for a free initial tax consultation. We are the affordable tax firm that deals with sales tax audits and owing back Florida sales tax.
We can provide the best possible tax defense if you’re undergoing an audit and work out the best possible solution if you have a pending tax warrant or they are about to take enforced collection action.
Call us today for a free initial tax consultation and we will break the process down and you can find out how speaking to us to make this problem worry free.
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 , DOR, sales tax audit.
Things that you need to know during a Florida sales and use 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 sales and use 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.
Call us for details.
