Florida Sales Tax Audit Defense –Restaurants-Bars

Florida Sales Tax Auditors are Fishing for Revenue in Your Business
Florida Sales Tax Audit News – Bars and Restaurants
Insider Tips:
Beware: The Florida Department of Revenue knows the amount of Alcoholic Beverage and Tobacco Products you are purchasing from your distributor.
Frank Lamantia  of FST should know, he was a Former Sales Tax Agent. He will tell you, Big Brother is watching.
Make sure you are truthful and accurate with Florida Sales Tax Auditors  when revealing information to them because they already know about your purchases. You are not going to fool them.
The key insider tip is to understand that the Florida state sales tax auditor already knows your information before  she/he even goes into your business.
It is critical that you give to them the exact records that are on file because they will know if you are trying  disguise, hid, alter, or fail to give all the necessary documents and records.
Remember most of the Florida State tax auditors have audited hundreds of businesses in our experts in fishing for your business.
They know all the tricks of the trades for restaurants and bars. It is much better to pay the tax than to be involved in a criminal tax violation.
 
Reporting Requirements
Florida Department of Revenue – Reporting Requirement for Sellers of Alcoholic Beverage and Beverage and Tobacco Products to Florida Retailers
 
Every seller (manufacturer, wholesaler, or distributor of alcoholic beverage or tobacco products who sells to retail or in Florida) must submit a report electronically each year to the Department of revenue. This annual report is to on July 1 for the preceding reporting. It is late after September 30.
 
The report for state fiscal year 2012 – 13 must include sales to Florida retailers from July 1, 2012 to June 30, 2013. The report was due on July 1, 2013 and is late after September 30, 2013.
 
Sellers must submit the reports of electronically using the departments website. Each seller received a notice with their assigned user ID and password to access the system.
 
What are the reporting requirements?
 
Each report must contain:
·      the seller’s name
·      the sellers beverage license or tobacco permit number
·      the retailer’s name
·      the retailers beverage license or tobacco permit number
·      the retailers address, including street address city, State, and ZIP Code
·      the general item type, such as cigarettes, cigars, tobacco, beer, wine, spirits, or any combination of these items
·      the net monthly sales total, in dollars sold to reach retail
 
Why Do Sellers Have to Report This Information
The Florida Department of revenue wants to find out if you are under reporting sales and use tax on alcoholic beverage and tobacco products sales.
Section 212.133, Florida statutes, imposes this annual reporting requirement on sellers of alcoholic beverage or tobacco products to Florida retailers. This information report will be used by the Department of revenue to identify Florida retailers who may be under reporting sales and use tax on alcoholic beverage and tobacco products sales.
For example the department will compare net wholesale sales of alcohol and tobacco products with the amount of sales and use tax reported and paid by the retailers.
 
Also as Stated in Florida Department of Revenue Tax Information Publication (TIP) No. 11A-01-04, dated June 17, 2011
 
Florida Department of Revenue Audit Representation for the Restaurant and Bar Industry
If you are going through a sales tax audit contact us today and speak to a former Florida sales tax agent, attorney, and Certified Public Accountants who could limit your exposure.
We are A+ rated by the Better Business Bureau and have been in practice in the State of Florida since 1982
With spending increases and cutting taxes there is only one way to balance the budget – Fishing for money through an Audit of Your Business.
The restaurant and bar industry, a major source of audit assessments will see an increase in audit activity to generate funds to cover the increased spending budget and the reduced taxes and fees.
Voluntary Disclosure:
If you have been under reporting or not reporting and you have not received a notice of audit, it is highly recommended that you contact our firm and we will assist your restaurant/bar in the process of going through a voluntary disclosure program to come clean now with the Florida Department of revenue, have most of the penalties waived and prevent it from becoming criminal.
Florida Tax Audit Help Provided to the Restaurant Industry
As An Insider – a former Florida State Sales Tax Agent – the following will explain to you some of the sales tax audit techniques used by the State of Florida Department of Revenue and the audit issues that will be targeted:
 
Methods of Operations for Restaurants and Bars
 
Restaurants
Restaurants range in size from small mom-and-pop operations to the national chains. All operate generally the same way, selling repaired food for consumption on or off the premises.
A large number of restaurants also operated lounges, in connection with the restaurant. These restaurants may operate in a number of different ways. Some serve alcoholic beverages with the food, as a part of the restaurant and some operated lounges that are completely separate operations from the restaurant. Some also offer entertainment and dancing, and a cover charge is sometimes imposed.
The primary statute related to restaurants is Section 212.08(1)(c), F.S., and the primary rule is Rule 12A-1.011 F.A.C.
 
Bar/Lounges/Package Stores
The operations of the bar will very they could sell prepared food and offer entertainment and dancing. They may also charge patrons a cover charge.  The bar/lounge may also sell other items in addition to alcoholic beverages, such as picnic supplies, food, ice, T-shirts and a variety of party items.The bar/lounge and package store may be located in the same building but in different rooms. Separate cash registers may be used for the bar/lounge and package store, or sometimes the same register will be used for both operations.
 
Bars/Lounges
The dealer may record each sale and add the tax to the selling price.  This results in the dealer reporting all taxes collected. The dealer may inform customers that the selling price includes the tax (putting them on notice). To do this, signs must be posted throughout the establishment that can be seen by all customers when ordering drinks. If the dealer selects this mess method, the tax to be reported will be calculated in the following manner:
Bars and/or cocktail lounge should divide their gross receipts by 1.0659, the result being the gross sales amount; the difference between the gross receipts amount in the gross sales tax amount should be reported as tax collected.
A combined bar and package store (operated as a single unit), which used the same method as bars and cocktail lounges.
An    Example:
a bar has gross receipts of 32,585.50 including tax, and signs are posted.  Therefore tax due would be computed as follows: 32,545.50÷1.0659 equals 30,533.35 gross sales… 32,545.50 less 30,533.35 = $2012.15 tax due.
The dealer may choose to set different prices that do not include tax and do not post signs to inform customers that tax is being collected, thus excluding tax from the price if this method is selected, the dealer would calculate and report the tax as follows:
·      bars and or cocktail lounges should multiply their gross receipts by 0.0659 and report the results as tax due
·      a combination bar and package store where the operations are not separated, which used the same method as the bar and cocktail lounge
·      Example:  no signs are posted in gross receipts are 32,545.50. Computation would be 32,505.50 x .0659 = 2144.75 tax due.
In this example, gross receipts are equivalent to gross sales because tax was not charged on the sale.
A bar or cocktail lounge may operate a packaged the bar/lounge offer drinks for consumption on the premises and the package store will offer package goods to take out.
 
Bars, Package Stores

Bars, package stores, and combinations that do not separately record the sales price and in tax are required to remit the tax on the percentage gross receipts. The applicable percentages are:
·      6.35% for package stores
·      6.59% for bars and bar/package store combinations
When the taxpayer can demonstrate that the customers had been informed that the price charged includes the tax, the gross receipts may be reduced by the amount of the tax (See Rule 12A-1.057, F.A.C.).
Package Stores
Facilities/Operations that do not sell by the drink for consumption on the premises will be considered a package store.  These type operations offer only items to be taken out. In addition to alcoholic beverages, they will offer items such as picnic supplies, food, ice, T-shirts, hats and party items for sale.
The dealer may record each sale and add the tax to the selling price. This results and the dealer reporting all taxes collected
The dealer may inform his customers that the selling price includes the tax thereby putting them on notice. To do this, signed must be posted throughout the establishment that can be seen by all customers making purchases.
If the dealer selects this method, the tax to be reported will be calculated by dividing their gross receipts by 1.0635, the results being the gross sales amounted; the difference between the gross receipts amount in the gross sales about should be reported as tax collected.
The dealer may choose to set prices that do not include tax and not post signs informing customers that tax is being collected thus excluding tax from the price. If this method is selected, the dealer would multiply their gross receipts by 0.0635 and report result as tax due.
Florida Restaurants and Bars – Tax Audit Defense
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.
 
Florida Sales Tax Auditors are Fishing For Your Business – Restaurants ,Bars – Sales Tax Audits