We are a tax defense firm that specializes in IRS and state tax representation.
We have over 206 years of professional tax experience, 60 years of working directly for the Internal Revenue Service, 16 years to working directly for the state of Florida Department of revenue.
We are a full service tax and accounting firm. Contact us today for free initial tax consultation.
Florida Sales Tax Audit Representation
Business who Repair Tangible Personal Property
We are a Florida Tax Firm that Focuses on Florida Sales Tax Audit Help.
You need to know and understand what to do and what not to do for Florida Sales Tax laws relating to your business.
Insider Tips
If you are being audited by the state of Florida, Department of revenue it is critical you understand the nature of the tax audit and what it will curtail.
You need to understand what issues the Florida sales tax auditor will be looking at and what to be prepared for.
The agents will be focusing there attention on:
- Unreported Sales (source info – Bank Statements, Federal Tax Returns, State Tax Returns)
- Exempt Sales without proper documentation
- Unreported Exempt Sales
- Repairs made to Non-Florida residents that were not shipped into Florida by common carrier and returned immediately when repairs were completed
- Taxable Fees that were not taxed such as service charges, technical fees, minimum fee charges, service calls, truck charges, and standard repair charges
- Sales Invoices with labor only and no tax (without evidence of materials not used in the repair)
- Rent paid without sales tax for buildings and other real property
- Rental consideration without sales tax(real estate taxes and other considerations paid on behalf of the landlord)
- Purchase of Fixed Assets as listed on the Schedule of Depreciation
- Purchase of consumable supplies
Florida Department of Revenue – Repair of Tangible Personal Property Standard Industry
General Overview
Retail repair businesses provide labor and materials to repair tangible personal property and return it to proper operating condition the size of the repair business may vary from a one-man operation to a large factory service; they all share one central function.
The definition of sales price in Section 212.02 (16), F.S “… Includes the consideration for a transaction which requires both labor and materials to alter, remodel, maintain, adjust and repair tangible personal property.” Rule 12A-1.006(1), F.A.C., states in part that, where parts are furnished by the repair, the entire charge he makes to his customers for repairing tangible personal property is taxable.
Insider Tip from Former Sales Tax Agent – Beware of the Drop of Oil
Further analysis of the tax ability of most repair transactions emphasizes; where so much as a drop of oil for lubrication is added to the property repair or a minute amount of wire and solder is used to repair a circuit, the entire charge made to the owner of the property for such repair or service is taxable.
Repairs to Industrial Machinery and Equipment
Industrial equipment is classified as tangible personal property, see TIP 02A01-04. The operation of industrial equipment repair is basically the same as small appliance repair. The major differences occur in billing methods and type of equipment repair.
The legislative intent to tax every sale of tangible personal property, including the fabrication or processing of such property, also applies to large industrial repairs. Rule 12A-1.006(3), F.A.C., notes that “provisions of this rule do not apply to contracts covering a combination of work on both real and personal property.
Such contracts are governed by the provisions of Rule 12A-1.051, F.A.C.” . The most important determination in deciding the taxability of repairs is to determine whether the item being repaired Realty or tangible personal property.
In addition, sometimes repair shops generate separate invoices for labor and materials when they are actually part of the same repair.
Billings may also contain travel expenses incurred for repair crew. All expenses, including travel, motel, restaurant charges, are taxable as a part of the repair weather stated separately or as a lump sum.
Florida Sales Tax Audit Defense
Business who Repair Tangible Personal Property
We are a full-service tax firm that specializes in federal and State 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 Representation – Former Agents – Affordable Experts
