by Fresh Start Tax | Jul 23, 2013 | State of Florida, Tax Audit
The Florida Department of revenue will audit anything that moves.
Both the federal and the state governments are in need of money and revenue so taxpayers can expect all government agencies to ramp up their tax audit forces.
As a general rule, a 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.
The state of Florida provides tax audit information for specific types of businesses.
Taxpayers may use them 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 not only if you’re undergoing a tax audit but for any taxpayer who wishes to understand the mindset of the Florida Department of revenue
You can call us today to learn more about a Florida Department of revenue sales tax audit.
These businesses in which tax audit guides are available are the following:
- Construction / Real Property Contractor
- Hotel / Transient Rental Manufacturers
- Repair of Tangible Personal Property
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. There is nothing wrong to ask the auditor why your tax return was pulled. As a general rule the reasons are the following:
- Enforce Florida tax laws uniformly,
- Deter tax evasion and criminal evasion,
- Promote voluntary compliance within the state of Florida,
You should also know that many times they have received tips from disgruntled employees or customers. I know you may find this hard to believe but spouses turn in the other spouse for the revenge factor
Many times these can lead to criminal enforcement. Be careful who knows your business.
Believe it or not most tax returns in the state of Florida are accepted as filed.
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 press and newspaper print is 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:
- Internal Revenue Service has provided various information that it feels a state of Florida should look at.
- Information sharing programs with other states and state agencies.
- Computer-based random selection.
- Analysis of Florida tax return information.
- 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 tax records will need to be provided to the Florida Department of Revenue?
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. Make sure you have all the records they ask for.
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
Requirement record keeping for the State of Florida, Department of Revenue
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%.
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 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.
Florida Department of Revenue Tax Audit – Sales Tax Audit Help
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 3, 2013 | Sales Tax, State of Florida
Florida Sales and Use Tax Audits
We are local and affordable Sales Tax Experts.
Received a Form DR-840, Notice of Intent to Audit Books and Records or currently under a Sales and Use Tax Audit ?
Stop the worry and let true Sales Tax Experts resolve your problem.
We are comprised of tax attorneys, certified public accountants, and former government agents who are true tax experts in sales and use tax audits and tax settlements.
We have over 206 years of professional tax experience in over 60 years of working directly for the South Florida government agencies that deal with tax audits.
We are A+ rated by the Better Business Bureau and have been in private practice right here in South Florida since 1982.
We are fast and affordable and accessible
The Department of Revenue routinely audits businesses to find out whether state taxes were collected, reported, and paid correctly. Although an audit is an enforcement tool to ensure tax compliance, it can also be educational.
During an audit, we can help businesses identify and correct bookkeeping problems that could cause additional tax liabilities.
Why Are Taxpayers Audited?
The State of Florida Department of revenue audits taxpayers to:
- Enforce Florida tax laws uniformly.
- Deter tax evasion.
- Promote voluntary compliance.
- Educate taxpayers.
While we accept most tax returns as filed, we audit 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 Taxpayers Selected for State 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:
- Internal Revenue Service information.
- Information sharing programs with other states and state agencies.
- Computer-based random selection.
- Analysis of Florida tax return information.
- Business publications, periodicals, journals, and directories.
What Types of Records Will I Need to Provide the State of Florida, Department of Revenue?
When the State of Florida notifies you of an intent to audit 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
- Florida tax returns
- Federal tax returns
- Depreciation schedules
- Property records
- Other documentation to verify amounts entered on tax returns
Recording Keeping for 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.
What Are My Rights During an 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.
Critical – Communicating and Meeting Deadlines
Throughout the audit process, communication is vital. After we send you a Notice of Intent to Audit Books and Records, the auditor will work with you to set a date to begin the audit.
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.
Self-Audit/Self-Analysis
The Department uses self-audit or self-analysis projects to educate taxpayers on issues related to a particular compliance problem or industry.
The State sends 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.
Under Florida Tax Audit – Affordable Attorneys, CPAs – Tax Audit Experts & Specialists – Miami, Ft.Lauderdale, Palm Beaches – South Florida
by Fresh Start Tax | Sep 13, 2012 | Sales Tax, State of Florida
Unfiled Sales Tax Returns – Avoid Criminal Problems – Ft.Lauderdale, Miami, Palm Beaches
The Department of Revenue of the State of Florida has been warning South Florida businesses that it was going to lay down the hammer on unfiled, past due, and unpaid Sales Tax Returns. On September 5 it did just that.
What is so surprising about this case, it was a very small case and to a person that was of no notoriety. Usually, the State loves to make big statements on large and famous place and people. This time, they came after the small man.
In Sunrise, Florida.
The former owner of a Sunrise restaurant is accused of pocketing more than $12,000 is sales tax receipts collected from customers..
Mr. Julio E. Ramirez, 63, of Tamarac, Florida was arrested Sept. 5 and charged with theft of State of Florida, Department of Revenue funds, failing to file tax returns and failing to pay taxes due at various times since 2010.
The report said that Mr. Ramirez kept the sales taxes he collected when he owned and operated Emilio’s Italian Restaurant at 11130 W. Oakland Park Blvd.
Remember, this case has not been tried and these are claims made against Ramirez.
If convicted, Ramirez faces up to five years in prison, a $5,000 fine and the repayment of the sales taxes plus interest, penalties and investigative costs.
If you have unfiled, past due, or unpaid Sales Tax Returns call us today . 954-492-0088
by Fresh Start Tax | Sep 4, 2012 | Florida Sales Tax, State of Florida, Tax Lawyer
We are a professional tax firm located in the State of Florida. We have on staff Tax Attorneys, CPA’s and Former IRS agents who worked in Florida in the local, district and regional offices of the Government.
We have over 206 years of professional tax experience and over 60 years of working directly for the IRS. in the local, district and regional offices of the IRS. We also worked hand in hand with the Department of Revenue, State of Florida.
We taught Tax Law. Call for a no cost tax consult. 1-866-700-1040.
IRS Problem areas and issues in the State of Florida
1. Unfiled tax returns, ( always the biggest problem )
2. Unpaid Payroll Taxes, ( 941, 940 )
3. Unreported Income,
4. FBAR Reporting,
5. IRS Tax Audits, office and field tax audits,
6. Criminal Investigations on non filers and deliberate tax evasion.
7. Specialized market specialization tax audits.
You will find IRS activity in the State of Florida extremely high. It ranks fourth in overall IRS activity. Due to the transient nature of it residents, the IRS has found many taxpayers living in Florida simply do not file tax returns.
When I worked at the IRS we conducted a undercover operation called FLEA BAG. We went undercover in to Flea markets and found that only 20% of vendors even filed tax returns. IRS is currently running similar projects in different industries.
With the new upgraded CADE 2 computer system being loaded with new software we will find much more activity in the area of non-fliers.
The State of Florida, Department of Revenue has thousands and thousands of business not filing and paying their Sales Tax. This has caused a huge problem for the State of Florida.
The State of Florida and the IRS have matching programs with shared agency use and you will find the IRS much more aggressive in non payment of payroll taxes.
IRS has hired many new Revenue Agents and we are finding a sharp rise in IRS tax audits for small and mid size businesses.
If you are undergoing a Florida Sales Tax Audit call us today.
How Are Taxpayers Selected for 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:
a. Internal Revenue Service information.
b. Information sharing programs with other states and state agencies.
c. Computer-based random selection.
d. Analysis of Florida tax return information.
e. Business publications, periodicals, journals, and directories.
Records needed to a 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:
a.General ledgers and journals
b.Cash receipt and disbursement journals
c.Purchase and sales journals
d.Sales tax exemption or resale certificates
e.Florida tax returns
f.Federal tax returns
g.Depreciation schedules
h.Property records
i.Other documentation to verify amounts entered on tax returns
Call former IRS agents and hear the truth. 1-866-700-1040. We are IRS and State of Florida Sales Tax Issues.
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by Fresh Start Tax | Jul 18, 2012 | IRS Tax Problem, State of Florida, Tax Help, Tax Lawyer
Florida IRS and State Tax Problem Relief and securing a solid top-rate tax firm.
Call us for a no cost consult and speak directly to a Tax Attorney, CPA or Former IRS Agent. 1-866-700-1040.
Like all States, Florida is loaded with solid tax practitioners when it comes to IRS and State Tax Relief.
The private tax firms are usually excellent.
It is the tax mills where potential problems lie. Most of these tax mills come and go and change to other names as the Attorney General shuts them down. They simply have another person open a new business under a different name. Florida is notorious for this. Tax Mills abound everywhere.
What to look for in a Tax Firm.
Make sure you look in the firm page and check out the bio’s of the tax professionals.
You want to make sure the firm is staffed with Tax Attorneys or Tax Lawyers, CPA’s and Former IRS agents.
You want to check out their BBB rating and find out how long they have been in business.
Call the firm and ask to speak directly to the person who will handling your case. Ask for the credentials of the person in which you are speaking.
What you do not know is this.
When you call a 1-888 number, you are usually speaking to a salesperson who lands you as a lead, then receives a commission and then they passes you on. They may sell you to a tax professional who buy leads.
Do not be fooled.
In good tax firms you will speak directly to the Attorney, CPA or Former IRS agent who will work your case.
Also if anyone guarantees you a result, run for your life.
Fresh Start Tax – 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 if Tax Records are lost or destroyed
- FBAR
- Expatriates Tax Representation
Our Company Resume: ( Since 1982 )
- Our staff has collectively over 205 years of Professional IRS Tax Representation Experience
- On staff, Board Certified Tax Attorney’s, IRS Tax Lawyers, Certified Public Accountants, Enrolled Agents,
- 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”
- Fast, affordable, and economical
- Licensed and certified to practice in all 50 States
- Nationally Recognized Veteran /Published Former IRS Agent
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- As heard on GRACE 90.3 FM and Reach FM Monthly
Florida , IRS & State Tax Problem Relief , Tax Help , Former IRS, Attorneys, IRS Experts