On July 19, 2012, [name omitted], owner of Leira's Service Station of Miami was hauled in to jail for failing to file six consecutive sales tax returns and refusing to pay taxes due. The Miami Shores resident faces up to 5 years in prison on the felony and misdemeanor charges. According to investigators, [name omitted] collected sales tax from customers at his store but during periods of 2007 through 2011, he failed to file sales tax returns as mandated by Florida law and he failed to remit the sales taxes to the state. Appearing satisfied by the work of law enforcement and the Florida Department of Revenue, Interim Executive Director Marshall Stranburg stated:
It is an honor to serve the vast majority of Florida businesses who comply with State tax requirements. For those that don't, it is our job to enforce the law and ensure honest businesses are not placed at a competitive disadvantage by those who ignore the law or intentionally collect and steal taxpayer dollars.
Florida law requires business owners that sell, repair, rent, or provide services to act as an agent to the state and they must remit all sales tax collected to state of Florida. Further, Florida sales tax is required to be separately stated on the customers invoice. More importantly, Florida law mandates that the taxes collected is property of the state the moment it is collected from the customer. Therefore, despite putting these amounts in their own checking accounts, business owners must segregate sales tax collect and remit it to the state in a timely fashion. Business owners that sell tangible personal property must also timely file sales tax returns.
Sales tax collected but not remitted is a crime and must be taken extremely seriously. It surprises most business owners to know that the Florida Department of Revenue is dramatically more likely to arrest a business owner for tax fraud than the Internal Revenue Service ("IRS"). While both the IRS and the Florida Department of Revenue will put tax liens on the business property (called a "Tax Warrant" in Florida), the Florida Department of Revenue will also put the business owner in jail if the taxes and all associated penalties, interest, fines, and costs are not remitted.
It is imperative that if you or someone you know has collected but not remitted Florida sales tax, then please contact an attorney for a confidential conversation to discuss his or her options. There are mechanisms in place that allow individuals or their attorney negotiate with the state to enter into a payment plan. While the monetary sanctions can be harsh, it is better than losing one's freedom. Like any other crime, anything said by you is an admission and can be used against you at a criminal trial. Therefore, it is wise to have an attorney speak on your behalf. At the Law Office of the Law Offices of Moffa, Sutton, & Donnini, P.A., our primary practice area is Florida tax controversy, with a very heavy emphasis in Florida sales and use tax. We have defended clients against criminal charges related to Florida sales and use taxes for more than 20 years. In fact, the only criminal cases we handle are related to Florida sales and use taxes. Our partners are both CPAs and Attorneys, so we understand both the accounting side of the situation as well as the legal side. We represent taxpayers and business owners from the entire state of Florida. Call our offices today for a free initial consultation to confidentially discuss how we can help put this nightmare behind you.
ADDITIONAL RESOURCES
FT MYERS BUSINESS OWNER ARRESTED FOR FAILING TO REMIT ONLY $8,000 IN SALES TAX COLLECTED, August 11, 2012, by James Sutton, CPA, Esq.
FL TAX ALERT - CONVENIENCE STORE OWNERS TARGETED, August 16, 2012, by James Sutton, CPA, Esq. and Jerry Donnini, Esq.
CRIPPLING PENALTIES UNDER FLORIDA SALES AND USE TAX LAW, July 19, 2012, by James Sutton, CPA, Esq.
FL DOR'S GREATEST WEAPON - REVOCATION OF DEALER'S SALES TAX CERTIFICATE, August 6, 2012, by Jerry Donnini, Esq.
FL TAX COMPLIANCE ALERT - NEW LAW REQUIRES FLORIDA DEALERS TO FILE ELECTRONICALLY, July 1, 2012, by Jerry Donnini, Esq.