There is nothing worse than to be pulled for an audit of any type no less a sales and use tax audit by the state of Florida.
Being former government agents we understand the anxiety and stress that these situation cause however due to our years of experience we understand the techniques that can be used as well as the tax strategies to avoid all the pain and anxiety that both individuals and businesses walk-through during a sales and use tax audit or an audit by the Internal Revenue Service.
It is also important to ask the auditor why your tax return was pulled for sales and use tax audit.
You want to stop the cycle and stop the trend so the state of Florida Department of revenue is not breathing down your back every couple of years.
HOW BUSINESSES ARE SELECTED FOR AUDIT BY THE STATE OF FLORIDA FOR SALES,USE TAX AUDITS
Several factors by the state of Florida, Department of Revenue have to be considered:
- The Department’s present Targeted Industries
- Prior audit history
- Industry involved
- Amount of total sales being reported
- Amount of exempt sales being claimed
- Ratio of exempt sales to total sales
- Location of the business and programs being administered by the Sales, Use Tax Division
- Information from customers or employees or possible informant
You must remember that Florida sales tax wants to go after the low hanging fruit and find the easiest ways to collect backs tax revenue.They are no fools they know exactly where to go and were look and they know the industries that tend to bury their money from the Florida Department of revenue.
If you review the above list you will find out there are very specific reasons why Florida sales tax division goes after those areas. Basically they are easy targets.
They may also the receive information or tips from third parties, sometimes by ex-spouses, sometimes from referrals from other persons who simply wish to get you in trouble and many times. You may find your competition turning you in.
Florida sales tax division and the Department of revenue likes to keep you guessing.
Most of the factors above are obvious.
The Easy targets for Sales Tax Audits
- Companies with a history of prior audits where there was recovery will more than likely get audited again.
- Larger companies with high amounts of sales and those reporting high amounts of exempt sales are targeted.
- The industry type can be a factor in why they were chosen for an audit.
- Bars, restaurants, and liquor stores can be cash based businesses and cash has a way of getting lost or not reported.
Other elements that may contribute to your company being assessed in an audit on the lack of internal controls and or not understanding the sales tax laws.
One thing for sure Florida sales tax audits are increasing because of the huge amounts of revenue they produce for the state of Florida.
Criminal Activity
If you feel that there may be some criminal issues involved with some area of sales tax you best not represent yourself but find a competent criminal tax attorney who specializes in Florida sales tax audits and representation.
Here at Fresh Start Tax we have tax professionals who can help you either in-house or with placement for your particular situation.
The department of revenue for the state of Florida uses the criminal division to collect their back sales tax. It is a great collection technique either prison are paying back sales tax.
If you have received a letter stating that you are under criminal investigation by Florida sales tax audit by all means do not talk to the state of Florida, Department of revenue investigator. Immediately contact a tax attorney at Fresh Start Tax.
We are comprised of tax attorneys, tax lawyers, certified public accountants, former sales tax auditors, and former IRS agents, managers and tax instructors.
We have well over 300 years of professional tax experience and are A+ rated by the Better Business Bureau.
You can contact us today for a free initial tax consultation and hear the truth about your case. We can take the stress and the worry away from your life.
We have been in private practice in the state of Florida since 1982. We are one of Florida’s most experienced professional tax firms.
Sales, Use Tax Audits – Hire Former Agents- We know the Strategies – FLORIDA
