Florida Sales and Use Tax Audits

 
 
We are local and affordable Sales Tax Experts.
Received a Form DR-840, Notice of Intent to Audit Books and Records or currently under a Sales and Use Tax Audit ?
Stop the worry and let true Sales Tax Experts resolve your problem.
We are comprised of tax attorneys, certified public accountants, and former government agents who are true tax experts in sales and use tax audits and tax settlements.
We have over 206 years of professional tax experience in over 60 years of working directly for the South Florida government agencies that deal with tax audits.
We are A+ rated by the Better Business Bureau and have been in private practice right here in South Florida since 1982.
We are fast and affordable and accessible
 
The Department of Revenue routinely audits businesses to find out whether state taxes were collected, reported, and paid correctly.  Although an audit is an enforcement tool to ensure tax compliance, it can also be educational.
During an audit, we can help businesses identify and correct bookkeeping problems that could cause additional tax liabilities.
 

Why Are Taxpayers Audited?

 
 
The State of Florida Department of revenue audits taxpayers to:

• Enforce Florida tax laws uniformly.
• Deter tax evasion.
• Promote voluntary compliance.
• Educate taxpayers.

While we accept most tax returns as filed, we audit 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 Taxpayers Selected for State Tax Audit?

 
 
The methods for selecting a business or individual to audit vary from tax to tax. Here are some examples of sources we use to identify a potential audit candidate:

• Internal Revenue Service information.
• 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.

What Types of Records Will I Need to Provide the State of Florida, Department of Revenue?

 
When the State of Florida notifies you of an intent to audit 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
• Other documentation to verify amounts entered on tax returns

Recording Keeping for 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.
 
 

What Are My Rights During an Audit?

The Florida Taxpayer’s Bill of Rights provides protection for taxpayers’ privacy and assets during their interactions with Revenue employees. Your rights include:

• The right to fair treatment.
• The right to get available information and prompt, accurate responses to your questions.
• The right to have the Department begin and complete its audit in a timely manner after we notify you of our intent to audit.
• The right to get simple, nontechnical statements which explain the reason for audit selection and the procedures, remedies, and rights available during audit, appeals, and collection proceedings.

Critical – Communicating and Meeting Deadlines

 
 
Throughout the audit process, communication is vital. After we send you a Notice of Intent to Audit Books and Records, the auditor will work with you to set a date to begin the audit.
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.
 

Self-Audit/Self-Analysis

 
 
The Department uses self-audit or self-analysis projects to educate taxpayers on issues related to a particular compliance problem or industry.
The State sends selected taxpayers information about a specific tax or issue, user-friendly instructions, and simple worksheets.  They ask them to review the materials, complete the worksheets, calculate any additional tax due, and return the paperwork to us with payment.
The auditor has limited contact with the taxpayer and does not visit the taxpayer’s location. The Department usually accepts the taxpayer’s responses.
However, participation in a self-audit/self-analysis does not exempt the taxpayer from further audit review of the same time period.
 
 

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