THE FLORIDA TAX AUDIT IS OVER

REQUEST TO EXTEND THE STATUTE OF LIMITATIONS: Even after the auditor issues the Notice of Intent to Make Audit Changes, the audit still may go on. A supervisor in the Florida Department of Revenue may decide additional work needs to be done or additional transactions are subject to tax. However, the three year Florida Statute of Limitation period is still running and the auditor may request an extension of time. You may be giving up valuable rights by agreeing to extend the statute of limitations and you should consult with an expert before agreeing to waive any of your rights.

Once all reasonable challenges to the DR-1215/1216 Notice of Intent to Make Audit Changes have been made, the auditor to finalize his results and wait for a Notice of Proposed Assessment ("NOPA") to be issued out of Tallahassee. There is no real timeline of when the FL DOR will issue the NOPA other than the three year statute of limitations, but we often see the NOPA surface within three to six weeks after the auditor closes the file.

NOTICE OF PROPOSED ASSESSMENT: After the audit and the Notice of Intent to Make Audit Changes, the next official step for the FL DOR is the issuance of the Notice of Proposed Assessment ("NOPA"). With the issuance of the NOPA, a very narrow timeline begins in which your rights dwindle quickly. The NOPA becomes a Final Assessment for the audit period within 60 days, leaving you a short window of time to challenge the assessment via an administrative protest. If you have received a NOPA and have not at least consulted with an expert in Florida State and Local Tax, then now is the time to do so before your right to challenge the assessment disappears.

ADMINISTRATIVE PROTEST OF NOTICE OF PROPOSED ASSESSMENT: If there is anything about the audit that is challengeable in fact or law, then we can file a PROTEST to administratively challenge the NOPA. At the Law Offices of Moffa, Sutton, & Donnini, P.A., we have filed hundreds of Protests challenging the FL DOR on behalf of taxpayers just like you. In fact, on average, we file two administrative protests a week. You've gone at it alone this far or possibly with a very qualified accounting firm. However, YOU ONLY HAVE 60 DAYS FROM THE NOPA TO FILE AN INFORMAL PROTEST. Your window of opportunity is dwindling fast - Contact us today for a free consultation to learn more how we can draft and file your Florida Tax Protest for you.

NEED ADDITIONAL TIME? You may also find it advantageous to know that once the Protest has been filed it usually takes 9 to 12 months for an answer to become final (via a Notice of Decision). A well drafted protest by an attorney experienced in Florida State and Local Tax Law can buy you additional time. You should also be aware that interest continues to accrue during the protest period, but only if the challenge is unsuccessful. Even if the protest is unsuccessful, then the accrued interest is only at today's low interest rates. Furthermore, after the notice of decision, you can file a petition of reconsideration. It is basically a protest that alleges some new fact or law that asks the DOR to take another look at it.

NEED TO MAKE AN OFFER TO SETTLE YOUR FLORIDA TAX LIABILITY? The good news is that the Florida Department of Revenue will entertain settlement proposals after a Notice of Proposed Assessment has been issued. However, settlement negations with the Florida Department of Revenue are not intuitive and strategies you think would be advantageous to a settlement can often hurt your position. DO NOT try to handle a settlement negotiation without a well seasoned attorney to help you avoid the pitfalls. We are experienced in negotiating with the Florida Department of Revenue to either except less than the proposed assessment or except an installment agreement allowing the taxpayer to pay the proposed assessment over time. We can also help negotiate to lessen or eliminate penalties. If you are facing a liability that you believe you owe but you know you cannot pay - then please contact us today for a free consultation about how to settle your Florida tax assessment.

FILE A FORMAL PROTEST WITH THE DIVISION OF ADMINISTRATIVE HEARINGS ("DOAH"): There is a process to challenge your assessment formally by filing a petition with the Division of Administrative Hearings ("DOAH"). Smaller taxpayers often favor a DOAH hearing over challenging the assessment in Civil Court (discussed below) because you do not have to pay the tax before bringing a formal challenge before the DOAH. However, this is a very formal, court-like proceeding and should be taken very seriously. It is highly recommended that you have an attorney represent you before a DOAH proceeding. The deadline for formally challenging an assessment in a DOAH proceeding is 120 days from the issuance of the NOPA or 60 days from the Notice of Decision if the assessment was already challenged using a protest. Taxpayers should be aware that even if they win in a DOAH proceeding, then Florida Department of Revenue still has the right to decide whether to abide by the DOAH decision. For this reason, most larger businesses with savvy state and local tax counsel will choose to challenge the assessment in civil court rather than a DOAH proceeding. If the taxpayer disagrees with the final order of a DOAH hearing, then the only recourse is appealing the final order to the Florida District Court of Appeals, but only on issues of law, not fact.

CHALLENGE THE ASSESSMENT IN CIVIL COURT: After an unsuccessful informal protest of a Florida Tax Assessment, if the taxpayer believes that the assessment is unjust based on the facts or law, then we usually recommend skipping the DOAH proceeding and challenging the assessment in a Florida Civil Court. Unless a taxpayer has stellar credit, then the down side to challenging an assessment in Civil Court is that the taxpayer must pay the alleged tax due into the registry of the court. There are two big advantages of a Civil Court challenge. First, the matter gets taken out of the hands of the FL DOR auditor and the Office of the General Counsel handles the case. This opens up the door to settlement negotiations again with a group that might see your case in a completely different light, which often allows for settlements in the taxpayer's favor that had not even been previously considered. Second, unlike a DOAH decision that can be overturned by the FL DOR, the decision of the Civil Court is binding on the Florida Department of Revenue. The deadline for filing suit in Civil Court is the same as filing for a DOAH proceeding – 120 days from the NOPA or 60 days after the issues of a Notice of Decision from an informal protest. Preparation for a suit in Civil Court takes time and expertise, so you should not make your decision lightly. There are a lot of trial attorneys, and there are also a number of attorneys that specialize in Federal tax matters, but there are only a handful of attorneys in the entire state of Florida whose primary practice area is Florida State and Local Tax and have significant experience in suing the Florida Department of Revenue. At the Law Offices of Moffa, Sutton, & Donnini, P.A., the primary focus of our firm is Florida Tax Controversy, and our attorneys have the experience you need to take on the Department of Revenue.