by Fresh Start Tax | Aug 5, 2013 | Sales Tax, State of Florida
Affordable Sales Tax Audit Representation
For those individuals or businesses who are undergoing a Florida sales tax audit the best advice to give anyone is to hire a person who has been a former Florida sales tax auditors and understands the scope of all Florida sales tax audit.
Fresh Start Tax is recently hired former Florida Sales Tax Auditor Frank Lamantia.
Here is some bio information on Frank Lamantia, former Florida Sales Tax Auditor.
Frank is a Former Sales and Use Tax Auditor for the Florida Department of Revenue while employed with the Florida DOR achieved the following awards:
- Davis Productivity Award of Distinction,
- Florida DOR Distinguished Service Award,
- Florida DOR Certificate of Excellence,
- Florida DOR Certificate of Appreciation,
- Florida DOR Special Recognition and the Florida DOR Super Star Award.
His career with the State of Florida Sales Tax Division of Treasury in 1985 as an Accountant Supervisor, Florida State University in 1987 as an Accounting Supervisor, Florida Attorney General in 1990 as an Assistant Finance & Accounting Director.
Frank then began his sales tax career in 1994 with the Florida Department of Revenue Sales Tax ,Coral Springs Florida Service Center.
Frank also worked at the Fort Myers Florida and Orlando Florida Service Centers.
Frank continued his sales tax career with the Florida out-of-state office, the Atlanta Service Center in 2001.
From 1994 to 2001 Frank worked in the Florida Service centers of Coral Springs, Fort Myers and Orlando
Frank conducted numerous audits of large multi-state corporations as well as small and medium size corporations, partnerships and sole proprietorships while working as a Florida in-state auditor.
From 2001 until 2010 Frank worked in the Florida out-of-state office of Atlanta, Georgia. Frank conducted numerous audits of large multi-state corporations as well as small and medium size corporations, partnerships and sole proprietorships that maintained their books and records in Georgia, Tennessee, Mississippi, Alabama, North Carolina and South Carolina.
If you need state of Florida sales tax help of any type contact us today so we could completely resolve your state of Florida IRS tax problem.
Frank is a specialist in Sales Tax Audits, Owing and Settling Sales Tax Issues and Sales Tax Problem Resolutions.
Frank cannot only help resolve your Florida sales tax issue if you’re going to wind up owing tax will look at your different tax options so this Florida sales tax debt will not cripple your financial life.
Besides having Frank on staff we are comprised of tax attorneys, certified public accountants, and former IRS agents, managers and tax instructors.
Call our offices today and speak direct to Frank or others on our professional tax team. 1-866-700-1040.
by Fresh Start Tax | Jul 25, 2013 | Sales Tax, Tax Help
If you have been notified by Florida sales tax that you are going to be undergoing a tax audit you want to make sure that you are defended by a reputable Florida tax firm better tax experts and have a specialty for sales and use tax defense.
You can call us today to review your tax audit papers so we can let you know the scope of the investigation and possible solutions or resolutions that can take place.
There are number of ways that the Florida sales tax audit can take place and it varies from audit to audit, region or region and auditor auditor.
There are also several methods that can be used to audit floor sales tax so it is important to understand the different auditing methods that may take place.
Listed below are a few audit options that can be used Florida sales tax.
How a Florida Sales and Use may audit and conduct your tax audit: The use of Selecting the Sample:
The first step in selecting the sample is to identify the sampling frame.
The sampling frame is a group of items from which the sample is drawn or a listing of sampling units.
In a homogeneous sampling frame, any item in the frame is representative of any other item; therefore, a random selection of all items in the frame will be representative.
The auditor determines how the accounting records are physically stored and available in order to identify the sampling frame.
Typically, accounting records have numbered sampling frames or non-numbered sampling frames, or they may have a combination of both.
Both numbered and non-numbered sampling frames can be randomly sampled using WinSample.
WinSample is a software program developed by the General Tax Administration’s Statistics Team and Applied Technology.
WinSample randomly selects sample points from many possible sampling frames using a seed number.
WinSample may be used when taxpayer records are not available in an electronic format suitable for stratified statistical sampling or e-Auditing.
Numbered sampling frames include source documents that are consecutively numbered.
Some examples are:
• Invoice numbers
• Voucher numbers
• Check numbers Non-numbered sampling frames include source documents that have no natural numbering system.
Although not consecutively numbered, a random sample of the transactions may still be identified.
Some examples of non-numbered sampling frames supported in WinSample are:
• Time periods (days, weeks, months, quarters)
• Journals (with page numbers and multiple lines on each page)
• Imaged documents
• Microfiche
After the sampling frame is identified, data integrity tests for each sampling frame should be performed.
Data integrity tests should be performed on both numbered and non-numbered populations.
Audit-Related Information
Electronic auditing, or e-Auditing,
Electronic auditing, or e-Auditing, is computer-assisted auditing 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 a candidate for an electronic audit.
We prefer to examine electronic records because it is the most accurate and efficient method of conducting an audit.
The Certified Audit Program
The Certified Audit Program is a cooperative effort between the Florida Department of Revenue and the Florida Institute of Certified Public Accountants (FICPA). Taxpayers who have not received a Notice of Intent to Audit from the Department are eligible. The program gives taxpayers the opportunity to hire qualified CPA firms to review their sales and use and local option tax compliance. As an incentive, Revenue waives penalties and reduces interest if tax is owed as a result of the audit.
The Voluntary Disclosure Program
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, Revenue will waive the penalties. If you think you might owe back taxes and Revenue has not contacted you about the liability, you may be eligible for the Voluntary Disclosure Program.
Standard Industry Guides provide tax information for specific types of businesses. Taxpayers may use them to help understand sales tax issues likely to surface relating to the industry; and relevant laws, court cases, and other technical documents.
Tax clearance letters and transferee liability certificates: When buying a Florida business, the purchaser should ask the seller for documentation of any tax, penalty, or interest due to the Department of Revenue.
A business owner can use a clearance letter as proof of good standing with the Department.
Florida Sales Tax
Each sale, admission charge, storage, or rental is taxable unless the transaction is exempt. Sales tax is added to the price of the taxable goods or service and collected from the purchaser at the time of sale. Florida’s general sales tax rate is 6 percent.
Use Tax
Use tax is due on the use or consumption of taxable goods or services when sales tax was not paid at the time of purchase.
For example:
If you buy a taxable item in Florida and didn’t pay sales tax, you owe use tax.
If you buy an item tax-exempt intending to resell it and then use the item in your business or for personal use, you owe use tax.
If you buy a taxable item outside Florida and bring or have it delivered into this state and you didn’t pay sales tax on the item, you owe use tax.
Discretionary Sales Surtax
Most Florida counties have a discretionary sales surtax (county tax) that applies to most transactions subject to the sales or use tax. The county surtax rate applies to a taxable item or service delivered into a county imposing a surtax. The surtax rate that applies to motor vehicles and mobile homes is determined by the home address of the purchaser. Check the rates for each county (Form DR-15DSS) in which you sell or deliver taxable goods or services.
For certain transactions, only the first $5,000 of a taxable sale or purchase is subject to the discretionary sales surtax.
How Tax Is Calculated
Sales tax and discretionary sales surtax are calculated on each taxable transaction. Florida uses a bracket system for calculating sales tax when the transaction falls between two whole dollar amounts.
Multiply the whole dollar amount by the tax rate (6 percent plus the county surtax rate) and use the bracket system to figure the tax on the amount less than a dollar. The Department of Revenue has rate tables (Form DR-2X) to help you.
Who Must Pay Tax?
Before you begin business in Florida, you must first find out if your business activity or products used will be subject to sales or use tax.
If it is, you must register to collect sales tax or pay use tax. Revenue provides a partial list of business activities that are taxable.
Governments and nonprofit organizations may not have to pay sales tax.
If you don’t know if your business must register to collect sales tax, contact your local service center or Taxpayer Services.
Florida Sales Tax Registration
You can register to collect and pay sales and use tax using our secure Internet site.
Once you are registered, we will send you a Certificate of Registration (Form DR-11), an Annual Resale Certificate for Sales Tax (Form DR-13) and tax return forms. Place the Certificate of Registration in a visible area of the business. You can use a signed copy of your current Annual Resale Certificate to buy products tax-exempt that you will resell or re-rent.
Filing and Paying Taxes
You can file and pay sales and use tax using Revenue’s secure web application or you may buy software from an approved vendor. You can access the web application using your certificate number and business partner number or a Revenue-issued user ID and password.
You must enroll in our e-Services program to receive a user ID and password. Enrollment has advantages: you can save your bank account and contact information, view your filing history, and reprint returns.
Please take time to read our detailed electronic filing and payment information. Taxpayers who report and pay tax electronically can download a payment due date calendar.
Helpful hints are available to prevent common mistakes, provide answers to common questions, and help ensure a successful filing.
Businesses whose sales and use tax collections are less than $20,000 per year may pay and report tax using a paper Sales and Use Tax Return (Form DR-15).
Revenue has detailed instructions (Form DR-15N) to help you accurately complete your return. However, we encourage all taxpayers to file and pay electronically.
Florida Sales Tax – Audit Defense Help – Tax Representation – Florida Sales Tax Experts
by Fresh Start Tax | Jul 24, 2013 | Sales Tax, Tax Audit
Since the state of Florida does not want to raise taxes or start taxpayers paying personal income tax there is only one way to collect more money from taxpayers and that simply is by auditing their tax return.
As a general rule, a tax auditor is worth six times their salary in additional money to the State, so only makes sense for the Florida Department of revenue to conduct more and more tax audits.
For businesses that are going through sales or use tax audits you should know that the state of Florida provides tax audit information for specific types of businesses.
Taxpayers may use audit guides to help to understand sales tax issues likely to surface relating to the industry, and relevant laws, court cases, and other technical documents.
These are a very valuable tool.
You can call us today to learn more about a Florida Department of revenue sales tax audit.
We are a local South Florida tax firm that are tax experts and sales tax audits.
Available tax audit guides for given industries
1. Aircraft Dealer,
2. Boat Dealer,
3. Commercial Rental Guide
4. Construction / Real Property Contractor,
5. Convenience Store
6. Grocery Store
7. Hotel / Transient Rental Manufacturers
8. Motor Vehicle Dealer
9. Repair of Tangible Personal Property
10. Restaurants and Bars
11. Retailer / Wholesaler
12. Transportation
Why were you Audited by the Florida Department of Revenue
There are a variety of reasons why the Florida Department of revenue is pulling your tax return for a tax audit.
As a general rule the reasons are the following:
- Enforce Florida tax laws uniformly,
- Promote voluntary compliance,
Other Reason for Tax Audits
You should also know that many times they have received tips from disgruntled employees or customers. Many times these can lead to criminal enforcement. Be careful who knows your business.
Only one percent of all tax returns are audited by the Florida Department of revenue and much of that is due to a limited manpower.
The Florida Department of revenue tries to take the biggest and the largest offenders and make examples of those businesses or companies by making sure much presses written to ensure compliance from other taxpayers in the state of Florida.
The state of Florida audits some returns to verify accuracy and evaluate compliance. Audits do not always result in the taxpayer owing additional tax, penalty or interest.
The auditor may adjust a credit carryover or correct distribution without assessing additional tax. The auditor may even determine that a refund is due.
How Are Florida Taxpayers Selected for a Sales or Use Tax Audit?
The methods for selecting a business or individual to audit vary from tax to tax.
Here are some examples of sources the state of Florida use to identify a potential audit candidate:
1. Internal Revenue Service has provided various information that it feels a state of Florida should look at. Many times when the Internal Revenue Service picks up an audit for federal reasons and they find flagrant violations of tax laws they will notify the state of Florida. These are common practices among government agencies
2. Information sharing programs with other states and state agencies.
3. Computer-based random selection.
4. Analysis of Florida tax return information. there are certain standards used by the state of Florida in which taxpayers fall within the normal median ranges. Once taxpayers fallout of these ranges it notifies the computer will be reviewed by an agent were decision is made to conduct a tax audit.
5. Business publications, periodicals, journals, and directories. From time to time the state wants to make sure certain industries are within tax compliance of the Florida Department of revenue tax guides and will take a certain industries and widespread sales tax audits to find out trends. Many these audits come up no change.
What types of records will need to be provided?
When the state of Florida lets you know of their tax audit intent, they will also tell you what records you will need to provide.
The types of records 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
Record keeping for the State of Florida
You must keep your records for three years since an audit can extend back that far.
The Department may audit for periods longer than three years if you did not file, or filed a substantially incorrect return or payment. These are usually omissions of tax of over 25%. There are no statutes for criminal violations.
Make sure you Communicate and Meet Deadlines with the auditor.
Throughout the audit process, communication is vital.
After the State of Florida Department of revenue sends you a Notice of Intent to Audit Books and Records, the auditor will work with you to set a date to begin the audit. It is in your best interest not to miss any of the dates as many times the auditors gets evaluated on meeting deadlines.
The auditor will give you deadlines for providing information or documentation.
If you need additional time to prepare, or need to request a delay for other reasons, contact the auditor.
The auditor will make every effort to accommodate your requests. If you fail to respond or provide the requested information, we may issue an assessment and file a warrant based on the best available information.
After your State Sales Tax Audit
After your audit is complete, you can review the audit findings and proposed changes to your tax liability. The auditor will give you a copy of the work papers and explain your rights, including deadlines for filing protests.
What if I do not agree with the audit results?
If you do not agree with the audit assessment, you can:
- File a written informal protest with the Department of Revenue; or
- File a written formal protest by petitioning for review by the Division of Administrative Hearings or file an action in circuit.
Sales Tax Audit Help – Florida Department of Revenue – Audit Representation – Miami, Ft.Lauderdale, Palm Beaches
by Fresh Start Tax | Jun 11, 2013 | Sales Tax
Ft.Lauderdale – Affordable Sales Tax Attorneys, CPA’s
We are a local South Florida tax firm that specializes in IRS and state tax audits.
We are affordable tax firm that flat fee bills.
We are comprised of tax attorneys, certified public accountants, enrolled agents, and former IRS managers and instructors.
We do not bill on an hourly basis and we let you know all costs before we get involved in any sales tax case or investigation.
You can come in for free initial consultation and we will completely review your sales tax records and give you an free assessment of what lies ahead.
We have been in private practice in South Florida since 1982 and we are A+ rated by the Better Business Bureau and are without complaint.
We have 206 years of professional tax experience and over 60 years working as former government agents with the Internal Revenue Service and crossed reference investigations with the state of Florida, Department of revenue.
There are many excellent tax firms in the South Florida area, please make sure you check us out before making a determination on who you will hire to defend your sales tax audit.
Why was my Sales Tax selected for audit?
When returns are filed, they are compared against “norms” for similar returns. The “norms” are developed from audits of a statistically valid random sample of returns.
The Sales Tax return is next reviewed by an experienced auditor.
At this point, the return may be accepted as filed, or if based on the auditor’s experience questionable items are noted, the agent will identify the items noted and the return is forwarded for assignment to an examining group.
Upon assignment to a group, the return is reviewed by the manager.
Industry Specific – Items considered in assigning a case are: factors particular to the area such as issues pertaining to construction, farming, timber industry, etc. that have specific factors and rules that apply.
Based on the review, the manager can accept the return or assign the return to an auditor. The assigned auditor again reviews the return for questionable items and either accepts it as filed or contacts the taxpayer to schedule an appointment.
Sales tax returns can also be selected for a tax audit due to non-filing issues.
The Florida Department of revenue systemically monitors corporations and taxpayers as well as certain industries and places in their computers audit triggers.
Contact us today for free initial tax consultation.
Areas of Professional Tax Representation
On staff, Board Certified Tax Attorney’s, IRS Tax Lawyers, Certified Public Accountants, Enrolled Agents,
Full Service Accounting Tax Firm,
We taught Tax Law in the IRS Regional Training Center
Former IRS Agents, Managers and Instructors with over 60 years experience in the local, district and regional IRS offices.
Highest Rating by the Better Business Bureau “A” Plus
Fast, affordable, and economical
Licensed and certified to practice in all 50 States
Nationally Recognized Veteran /Published Former IRS Agent
Nationally Recognized Published EZINE Tax Expert
As heard on GRACE Net Radio.com – Monthly Radio Show-Business Weekly
Areas of Professional Tax Practice:
Same Day IRS Tax Representation
Offers in Compromise or IRS Tax Debt Settlements
Immediate Release of IRS Bank Levies or IRS Wage Garnishments
Tax Relief from a IRS Bill, Letter or Notice of “Intent to Levy”
IRS Tax Audits
IRS Hardships Cases or Unable to Pay
Payment Plans, Installment Agreements, Structured agreements
Abatement of Penalties and Interest
State Sales Tax Cases
Payroll / Trust Fund Penalty Cases / 6672
Filing Late, Back, Unfiled Tax Returns
Tax Return Reconstruction
by Fresh Start Tax | Jun 10, 2013 | Sales Tax, State of Florida
Owe Florida Sales Tax – Ft.Lauderdale, Miami
If you owe back sales tax for the state of Florida contact us today for a free initial tax consultation and review of your case.
We’re a local professional tax firm that specializes in Florida sales tax.
We are comprised of tax attorneys, tax lawyers, certified public accountants, enrolled agents, and former IRS agents who have over 60 years of direct tax experience in the local South Florida tax offices.
We have been in practice right here in South Florida since 1982 and we are A+ rated by the Better Business Bureau.
The Florida Sales Tax 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, NOD) 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.
The Use of Private Collection Agencies
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.
If you cannot afford to pay your Florida sales tax
If you can not a afford to pay your Florida sales tax contact us today and we can go over the different tax options and strategies to help relieve you of your current Florida sales tax debt.
It is in your best interest to make sure all tax returns are current if possible and that you are making your necessary deposits to show the state of Florida good faith.
If any government agency finds out that a taxpayer is current in filings and payments they will make every effort to work with the individual or the business.
If you can pay, 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.
A taxpayer who believes they received a delinquency notice in error, disagrees with the billing amount due, or has already filed or paid the return or billing in question, should contact the Department immediately to resolve the issue.
If sending written correspondence, be sure to include name, business name, tax type, business partner number, and telephone number.
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.
What to do if it’s not possible to pay in full?
The taxpayer will be required to provide financial documents that support their inability to pay the debt in full.
They should also be prepared to pay a minimum of 25 percent down and the full balance within a year.
Taxpayer Rights Advocate
The Taxpayer Rights Advocate helps resolve taxpayer problems and complaints not solved through normal channels.
If a taxpayer believes that they have not been treated fairly by Department employees, they should try to resolve the issues/problems through normal channels.
If this has already been done but the taxpayer still believes the Department has not addressed the concerns, contact the Taxpayer Rights Advocate at 850-617-8168 or write to:
Taxpayer Rights Advocate
Department of Revenue
P.O. Box 5906
Tallahassee FL 32314-5906
Contact us today for a free initial tax consultation if you owe Florida sales tax or need to file back tax returns.
We are a local tax firm located in South Florida and have been practicing since 1982 to serve all your tax needs.
Owe Florida Sales Tax – Ft.Lauderdale, Miami – Back Tax Filings, Back Tax Settlements, Tax Warrants
by Fresh Start Tax | Jun 10, 2013 | Sales Tax
Florida Sale Tax Audit – Tax Audit Defense Help
We are comprised of Affordable Florida State audit tax experts.
Our staff is comprised of tax attorneys, tax lawyers, certified public accountants, and former IRS agents managers and tax instructors.
We are a local professional tax firm that has been practicing right here in South Florida since 1982.
We’re A+ rated by the Better Business Bureau and all our work is done in-house by true tax experts.
If you have received a notice that you are about to be audited by the Florida Department of revenue sales tax, contact us today for a free initial tax consultation and let us be able to offer you affordable tax audit defense.
Before engaging in any tax firm for a Florida state sales tax audits, make sure you contact at least three different firms and check out their pricing, their experience, and what possible results may be given your particular situation.
Commonly asked Questions
Why Are Taxpayers in the State of Florida Audited?
- Enforce Florida tax laws uniformly.
- Promote voluntary compliance.
Generally the State of Florida accepts most tax returns as filed, however the State audits some returns to verify accuracy and evaluate compliance.
Sales Tax Audits do not always result in the taxpayer owing additional tax, penalty or interest. The auditor may adjust a credit carryover or correct distribution without assessing additional tax. The auditor may even determine that a refund is due.
Why were you Selected fora Sales Tax Audit?
The methods for selecting a business or individual to audit vary from tax to tax.
Here are some examples of sources we use to identify a potential audit candidate:
1. Internal Revenue Service information.
2. Information sharing programs with other states and state agencies.
3. Computer-based random selection.
4. Analysis of Florida tax return information.
5. Business publications, periodicals, journals, and directories.
What Types of Tax Records Will I Need to Provide for a Florida Sales Tax Audit?
When we notify you of our intent to audit, we will also tell you what records you will need to provide.
The types of records 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
- Other documentation to verify amounts entered on tax returns
Keep your Tax Florida Sales Tax Record for 3 years
You must keep your records for three years since an audit can extend back that far. The Department may audit for periods longer than three years if you did not file, or filed a substantially incorrect return or payment.
You have Rights During a Sales Tax Audit?
The Florida Taxpayer’s Bill of Rights provides protection for taxpayers’ privacy and assets during their interactions with Revenue employees.
Your rights include:
- The right to fair treatment.
- 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 after we notify you of our intent to audit.
- The right to get simple, nontechnical statements which explain the reason for audit selection and the procedures, remedies, and rights available during audit, appeals, and collection proceedings.
What Happens When the Florida Sales Tax Audit is Complete?
After your audit is complete, you can review the audit findings and proposed changes to your tax liability. 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, we expect you to pay the amount due in full. You have the right to protest the proposed changes if you disagree with them. “How to Pay Your Audit Assessment” has more details.
Florida Sales Tax Audits Self-Audit/Self-Analysis ( from Florida Sales Tax )
The Department uses self-audit or self-analysis projects to educate taxpayers on issues related to a particular compliance problem or industry.
The State will send selected taxpayers information about a specific tax or issue, user-friendly instructions, and simple worksheets.
They ask them to review the materials, complete the worksheets, calculate any additional tax due, and return the paperwork to us with payment. The auditor has limited contact with the taxpayer and does not visit the taxpayer’s location.
The Department usually 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.
Florida Sale Tax Audit – Affordable Tax Audit Defense Help – Miami, Ft.Lauderdale – Attorneys, Former Agents
