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,

• Deter tax evasion,

• Promote voluntary compliance,

• Educate taxpayers.

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

• Florida tax returns

• Federal tax returns

• Depreciation schedules

• Property records

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