Florida Sales Tax Audit Help – Construction, Real Properties Contractors – Audit Representation Experts

by Fresh Start Tax | Sep 3, 2013 | Sales Tax, State of Florida

Florida Sales Tax Audit Help   1-866-700-1040

Florida Sales Tax Audit  –  Former Florida Sales Tax Auditor
 
A Florida sales tax audit can be a very expensive educational lesson for compliance with the Florida sales tax laws.
The Florida Department continue to seek more tax dollars from the taxpayers of  Florida and targeting certain industries within the state is a sure way to collect back taxes.
Targeting specific industries like the construction industry because there is low hanging fruit for a revenue agent to pick.
The histories of the construction, real properties and general contractors are easy tax dollars for Florida sales tax department of revenue.
There are always funds to be found in specific industries like the construction industry (2nd largest industry in Florida) to add to the General Revenue of The State of Florida.
Frank Lamantia of Fresh Start Tax LLC is one of our own seasoned tax professionals that will represent your best interest if you are undergoing a Florida Sales Tax Audit.
Frank is a 16 year veteran with of the Florida Department of Revenue and with numerous exposures to audits in all industries.
 
Real property contractors
Real property contractors generally maintain a substantial amount of fixed assets such as heavy off-road equipment used to prepare construction sites or roads prior to the actual construction of building or facility.
These fixed assets are subject Florida sales taxes and if not paid to the vendor should be accrued and paid to Florida as a use tax. Many times taxpayers forget to include this tax.
 

Types of Contractors

In Florida, the sale of real property is not subject to sales tax.
Real property contractors and repairers purchase tangible personal property and convert it to real property. Real property contractors operate under lump sum, cost plus/fixed fee or upset/guaranteed price, or time and materials contracts are actually selling real property and should not charge sales tax on their contract.
Sales or use tax should be paid on all their material and supply purchases the contractor is the ultimate consumer of the tangible personal property performance of these contracts.
General contractor – the party responsible for the entire construction project.
A general contractor will typically enter into a contract (referred to as the prime contract) with the owner of the property to be improved and oversee the entire project, performing anywhere from the majority to none of the actual work.
The portion of the work the general contractor does not perform will be “subbed” out to a qualified subcontractor.
Subcontractor – a contractor with special expertise, such as electrical, mechanical, excavation, or steel erection.
Defense contractor – a contractor who performs work for the federal government
 

Information – Types of Contracts

The method the contractors or subcontractors use to arrive at the total contract price charged for repair, alteration, improvement, and construction of real property or for combination of work on both real property and personal property must be determined for the purpose of determining whether the receipt from the sales made to or by them are taxable.
Rule 12A-1.051(3), F.A.C., outlines five general methods used by these contractors in writing contracts:
• lump sum – contracts in which the contractor or subcontractor agrees to furnish the materials and supplies and necessary services for a “lump sum”
• cost-plus or fixed fee – contracts in which the contractor or subcontractor agrees to furnish the materials and supplies and necessary services on a cost plus or fixed fee basis. The contractor will be paid an amount equal to the cost, as defined in the contract and specified overhead and profit rates, in a cost-plus contract. The fee or profit element may be specified as a lump sum rather than a percentage of the cost.
• upset or Guaranteed Price – contracts in which the contractor or subcontractor agrees to furnish materials and supplies and necessary services with an upset or a guaranteed price that may not be exceeded.
• retail sale plus installation or “(3)(d)” contracts – Contracts in which the contractor or subcontractor repairs, alters, improves or constructs real property and wherein the contractor agrees as a part of the original contract to sell specifically described an itemized materials and supplies at an agreed price or at a regular retail price and to complete the work easier for an additional agreed price or on the basis of time consumed.
A “time and materials contract is not a (3)(d) contract.
The attachment of an itemized list of materials to invoice after work has been performed does not create a (3)(d) contract. Contractors to perform retail sale plus installation contracts to sell tangible personal property and they should register as dealers and provide a copy of their annual resale certificate to the selling dealer to purchase tax exempt materials that are itemized and resold.
• time and materials – contracts in which the contractor agrees to complete a job and charges an amount for material and an additional amount (usually in increments of time required to complete the job). Time and material contracts differ from “(3)(d)” contracts because the materials are not completely identified, itemized, and priced in in advance and because the property owner is contracting for a finished job rather than the purchase of materials.
Pursuant to Florida administrative code and court decisions, a class 3(d) contract must:
• itemized each and every separate item of tangible personal property used in fulfilling the contract
• itemized each and every separate items price
• be issued in writing, expressing the necessary itemization in advance of the work performed; and
• pass ownership of the materials directly to the customer upon delivery, along with all the risks and responsibilities of ownership
A detailed invoice issued upon completion of service on real property does not constitute a class 3(d) contract.
 

Example

For example, service jobs on HVAC systems which involve a detailed billing after the work is completed, but which do not involve the preparing of the contract, setting forth the materials to be used in the price of the materials, in advance of the work are considered time and material jobs, not 3(d) contracts.
 
Due to these requirements, it is difficult for a contractor to enter into a 3(d) contract.
In cases where a transaction involves a contract falling under Rule 12A-1-051(3)(d), F.A.C., the contractor is selling tangible personal property and should charge the appropriate tax on the customers invoice.
We are a full-service tax firm that specializes in federal 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.
 

Florida Sales Tax Audit Help – Construction, Real Properties Contractors  – Audit Representation Experts

Owe Sales Tax, Warrants, State of Florida – Help from Attorneys, Former Agents

by Fresh Start Tax | Aug 23, 2013 | Sales Tax, State of Florida

Speak to a True Tax Professional  Free Tax Consultation, Hear all your options,  NOW!!   Speak directly with the Experts.

 
We have over 100 years of working for government agencies and have worked thousands of cases. We offer you a free consultation so you can find the different options you have available to get the help you need to take care of a Tax Warrant.
If  will owe Florida state sales tax you should know that the state of Florida publishes a list of names of businesses and individuals who owe back Florida sales tax.
The Florida Department of Revenue is authorized by law to publish a list of the names of taxpayers who have large unresolved tax liabilities.
These taxpayers have failed to pay or arrange to pay their debt, despite repeated attempts by the Department to collect the amount due.
Keep in mind that the state of Florida Department of revenue must make repeated attempts before these lists get published.
If you need help in these matters, contact us today for free initial tax consultation and see how we can help you if you owe sales tax and have a tax warrant that you are dealing with.
 
 

What is a Florida Tax Warrant

 
A Florida Tax Warrant is the Florida Department of Revenue’s version of a Tax Lien.
With regard to Sales and Use Taxes, it is a very serious matter, especially if it reflects taxes collected but not remitted.
This is one of the few matters that will even follow a business through bankruptcy and, under certain circumstances, make the owners and employees responsible for remitting the tax personally liable both civilly and criminally.
The Florida Department of Revenue takes these matters very seriously and publishes a list of people arrested for unpaid sales taxes monthly.
 
The names were selected according to the following criteria:
 

• Taxpayers who have unsatisfied tax warrants or liens totaling $100,000 or more, and

• In counties where no taxpayer has warrants or liens totaling $100,000, the two taxpayers with the highest amount of warrants or liens are included.

• Taxpayers who are in bankruptcy, who have entered into and are current on a stipulated payment agreement, or who have in place a payment agreement with the Department, are excluded.

Where the tax Warrant is Filed

 
The warrant or lien is a public record filed with the Clerk of Court or other government office in the county where the taxpayer is located.
The list is published according to section 213.053(19), Florida Statutes. Unauthorized use of this information is prohibited by Florida law.
The list will be updated every 30 days. The current list was posted on August 9, 2013.
If your name or business name appears on the list and you want to resolve your tax liability, contact your local Department of Revenue service center.
 
You must do one of the following:
 

• Pay the amount in full.

• Enter a stipulated payment agreement.

• Provide information to prove the amount on the warrant is not due.
• Call Fresh Start Tax to seek a viable solution.

The Department of Revenue Collection Process

 
The Department of Revenue begins the collection process when a taxpayer fails to file a return, fails to make a payment, underpays the amount due, files late, pays late, or owes additional money that was discovered in an audit.
A delinquency notice (Notice of Delinquency) is issued when a return is not filed and a bill (Notice of Amount Due) is issued when a return is filed late or additional money is due.
The delinquency notice issued to a taxpayer indicates a return has not been filed, while the initial bill contains a breakdown of the additional amount due.
It is extremely important to take prompt action for resolution when you receive a billing or delinquency notice. Penalties and interest continue to accumulate until the entire amount of the tax is paid.
If the debt remains unpaid for 90 days, the Department will charge a 10% administrative collection processing fee to cover the costs of collecting the debt.
Failure to resolve your debt may result in your account being sent to a private collection agency.
If your account is sent to a private collection agency and the debt includes reemployment tax (formerly known as unemployment tax), you will be charged a separate fee by the collection agency.
The quickest way to resolve a bill is to pay it online.
If a delinquency notice is received, it is important to file the missing return(s) and pay the tax as soon as possible.
If a taxpayer is already enrolled for e-file and pay, they need to submit the missing returns and payments as they normally would. If not currently on e-file, enrollment for e-Services is easy.
A user ID and Password will be sent within 48 hours and then the taxpayer can electronically file and electronically pay past-due returns.
 

Failure to Respond

 
Failure to respond timely may result in further enforcement actions which could include:

• filing liens against property,
•  freezing bank accounts, and
• revoking sales tax registration and other professional licenses.

 
If you need tax professionals to help deal with the matter owing Florida sales tax and dealing with tax warrants call us today for a free initial tax consultation and speak directly to true expert tax professionals.
You can speak to tax attorneys, CPAs, former Florida Department of Revenue Agent or former IRS agents and managers.
We are a full service tax firm that deals with all federal and state tax matters.
 
 

Owe Sales Tax Warrants, State of Florida – Help from Attorneys, Former Agents

Florida Sales Tax Audit Guidance & Audit Defense

by Fresh Start Tax | Aug 5, 2013 | Sales Tax, State of Florida

Florida Sales Tax Audit Guidance and Defense
If you have received a Florida sales tax audit notice from the from the Florida Department of revenue you have many professional options in which to turn.
It is a best case practice to hire tax attorneys, certified public accountants and former Florida sales tax auditors who are experts in Florida sales tax audits guidance and in Florida sales tax audit defense.
If you are searching the Internet to hire a company, make sure you hire a professional tax firm with a quality reputation,  one that is well experienced and one that has a quality Better Business Bureau rating.
 

Should you handle the Sales Tax Audit yourself ?

If you have absolutely clean tax records, you are well organized, and all your tax records are in relatively good order there is nothing wrong with you handling the Florida Sales tax audit yourself. Many times we will urge clients to do so on there own.
However, if you have skeletons in your closet and have some shaky issues that  may cause you some problems, it is best to hire a professional tax firm that has extensive Florida sales tax audit experience.
As a general rule the state of Florida, Department of revenue audits high-value targets and usually has a good reason for the Florida state sales tax audit division to audit your tax records. If you fall into this category should contact us today.
 

Our Florida Sales Tax Audit Expert.

Fresh Start Tax LLC has recently hired has Mr. Frank Lamantia on the firm’s team as an associate for Florida Sales & Use Tax.
Frank is a former Sales and Use Tax Auditor for the Florida Department of Revenue and can be your greatest asset in your defense and guidance in a sales tax audit.
Mr. Lamantia will use his 16 years of experience, skills and abilities to work for your business to assist, defend and save money for your company that has business activities in the State of Florida.
The Florida Department of Revenue routinely audits business to find out if state taxes were collected, reported and paid correctly.
The Florida Department of Revenue taunts that an audit can be educational to the business but in reality a Florida Sales Tax Audit can become a very expensive and costly experience for your business.
An Florida Sales tax audit is a tool to enforce tax compliance for The Department of Revenue and could apply tax laws unjustly to your business. The Florida Tax Auditor is in your business affairs to come up with an assessment for tax revenue for the State of Florida. Remember the auditor’s job is to find revenue for the state of Florida
We can defend your business and ensure the Florida Sales Tax Laws and Administrative Codes (Rules) are applied correctly to the transactions in your business.
If you have received a Notice of Intent to Audit Books and Records, the auditor will set a date to begin the audit.
We can conduct the audit with a Power of Attorney to insure that all sales and use tax laws are properly applied to your business.
Once a Power of Attorney has been established we will respond to the auditor with a date to start the audit and other deadlines for providing information or documentation thus avoiding an assessment and a warrant based on the best available information.
When there are transactions or issues for which the tax consequences are questionable, we will ask for a written statement of the Departments position at any time during the audit. The Department’s office of Technical Assistance and Dispute Resolution will issue a Technical Assistance Advisement (TAA) which is binding on the Department.
Contact us today for free initial consultation for Florida sales tax audit guidance and Florida sales tax audit defense. You will speak directly to a true tax professionals who are experts in Florida sales tax representation.
 
Florida Sales Tax Audit Guidance & Audit Defense