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:
 

• Aircraft Dealer

• Boat Dealer

• Commercial Rental Guide

• Construction / Real Property Contractor

• Convenience Store

• Grocery Store

• Hotel / Transient Rental Manufacturers

• Motor Vehicle Dealer

• Repair of Tangible Personal Property

• Restaurants and Bars

• Retailer / Wholesaler

• 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. 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,

• Educate taxpayers.

 
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

• Florida tax returns

• Federal tax returns

• Depreciation schedules

• Property records

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