FORT MYERS SALES TAX THEFT - RESTAURANT OWNERS ARRESTED
On July 17, 2014, the Florida Department of Revenue ("FDOR") announced [names omitted], were arrested by the Lee County Sheriff's Office. The charges were that they allegedly collected over $65,000 in sales tax from customers at Biddle's Piano Bar & Restaurant and failed to remit the tax to the state. The owners, Fort Myers residents, were charged with a felony count relating to theft of state funds and each face up to 15 years in prison, up to $10,000 in fines, as well as possible repayment of stolen tax, interest, penalty and investigative payment liabilities.
According the FL DOR's press release, [names omitted], owners of the now closed Biddle's Piano Bar & Restaurant collected tax from their customers at their Fort Myers restaurant. However, from June 2010 through May 2011, they failed to remit the tax collected to the state. It is worth pointing out that collecting and not remitting over $20,000 is a second degree felony, and an amount over $100,000 is a first degree felony offense.
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. Restaurant owners are a significant source of sales tax revenue for the state of Florida and, as such, face close scrutiny from the Florida Department of Revenue. Restaurant owners throughout Southwest Florida are at risk because the FL DOR has recently been issuing more audit notices for restaurants in Lee County. Therefore, restaurant owners should be prepared for an audit notice and be able to produce records supporting their sales tax returns.
Further, Florida law mandates that the taxes collected are the property of the state from the moment it is collected from the customer. Therefore, restaurant owners who collect tax and fail to remit any portion of the collected tax are at risk of criminal penalties.
The Executive Director was quoted saying:
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 worse intentionally collect and steal taxpayer dollars
Collecting but not remitted Florida sales tax is a crime under Florida law and must be taken extremely seriously. It is shocking to many 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 FL DOR will put tax liens on the business property (called a "Tax Warrant" in Florida), the Florida Department of Revenue will also charge and put the business owner in jail if the taxes and all associated penalties, interest, fines, and costs are not remitted.
If you or someone you know has collected but not remitted Florida sales tax, then please contact an attorney experienced in Florida sales and use tax criminal defense for a confidential conversation to discuss his or her options. There are mechanisms in place that allow individuals or their attorney to 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 taxes, 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.
About the author: Mr. Parker is a sales and use tax attorney and an associate in the law firm the Law Offices of Moffa, Sutton, & Donnini, P.A., based in the firm's Tampa office. Mr. Parker's practice includes state tax audits and controversies involving sales and use tax and all other state taxes including communication service tax, documentary stamp tax, cigarette & tobacco tax, motor fuel tax, and Native American taxation. Mr. Parker received his law degree and L.L.M. in Taxation from the University of Florida. If you have any questions please do not hesitate to contact him via phone or email listed on this page.
ADDITIONAL RESOURCES
12 USED CAR DEALERS ARRESTED FOR SALES TAX FRAUD, July 12, 2014, by Jerry Donnini, Esq.
ORLANDO SIGN COMPANY OWNER ARRESTED, July 6, 2014, by Matthew Parker, Esq.
MIAMI RESTAURANT OWNER – 5 YEARS IN PRISON FOR SALES TAX THEFT, May 28, 2014, by James Sutton, CPA, Esq.
DAVIE AUTO DEALER ARRESTED IN SALES TAX THEFT CASE, March 20, 2014, by Matthew Parker, Esq.
BROWARD COUNTY USED CAR DEALER ARRESTED, January 23, 2014, by James Sutton, CPA, Esq.
FL TAX ALERT – CONVENIENCE STORE OWNERS TARGETED!, August 16, 2012, by James Sutton, CPA, Esq., and Jerry Donnini, Esq.
TAMPA JEWELRY STORE MANAGER ARRESTED FOR SALES TAX THEFT, August 30, 2012, by James Sutton, CPA, Esq.
MIAMI AUTO REPAIR SHOP OWNER ARRESTED FOR SALES TAX, August 25, 2012, by Jerry Donnini, Esq.
FT. MYERS BUINESS OWNER ARRESTED FOR FAILING TO REMIT ONLY $8,000 IN SALES TAX COLLECTED, August 11, 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.
CRIPPLING PENALTIES UNDER FLORIDA SALES AND USE TAX LAW, July 19, 2012, by James Sutton, CPA, Esq.
WHAT SERVICES ARE SUBJECT TO SALES TAX IN FLORIDA, May 1, 2012, by James Sutton, CPA, Esq.
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