BROWARD USED CAR DEALER ARRESTED FOR SALES TAX
On January 6, 2014, [name omitted], owner of Vehicles 4 Sale, Inc. located at 900 North State Road 7, Hollywood, Florida, was arrested because he allegedly stole state tax funds. Specifically, the state attorney alleges that the business owner collected over $54,000 in Florida sales tax and did not remit it to the state and that he filled false or fraudulent tax returns.
The Broward County Sheriff's Office made the arrest on the theft of state tax funds charge. The city of Longwood, Florida resident faces up to 15 years in prison and up to $10,000 in fines in addition to repayment of any taxes, interest, and investigation expenses. According to investigators, [name omitted] who lives in Pembroke Pines, FL, collected sales tax from customers in his car dealership during the period 210 through 2012 and failed to turn the funds over to Florida partially by filing false sales tax returns which understated the actual sales and sales tax collected.
Florida law requires automotive dealers that to charge sales tax on the car sales and to act as a sales tax collection agent to the state. Whether the business wants to or not it must collect tax on the state's behalf and then remit the sales tax to the state by the 20th of the following month. Further, Florida sales tax is required to be separately stated on the customers invoice and Florida law mandates that the taxes collected be the property of the state from the moment it is collected from the customer. Unfortunately, business owners often keep tax funds in order to fund short term business losses and expenses with the intention to make up the difference the following months. If the next month is worse or the same then the situation can quickly spiral out of control.
NOTE: Below please find a link to an article specifically on how used car dealers are being targeted by the Florida Department of Revenue for sales tax fraud.
Sales tax collected but not remitted is a crime under Florida law 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.
There are often mechanisms and programs in place that allow individuals or their state and local tax attorney to negotiate with the state to enter into a payment plan. If you or your client 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. Equally important, there is no accountant client privilege in Florida for crimes so accountants should not put themselves in a precarious situation. 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. SUTTON IS A FLORIDA LICENSED CPA AND ATTORNEY AND A SHAREHOLDER IN THE LAW FIRM the Law Offices of Moffa, Sutton, & Donnini, P.A. MR. SUTTON IS IN CHARGE OF THE TAMPA OFFICE FOR THE FIRM AND HIS PRIMARY PRACTICE IS FLORIDA SALES AND USE TAX CONTROVERSY & CRIMINAL DEFENSE. MR. SUTTON WORKED FOR THE STATE AND LOCAL TAX DEPARTMENT OF A BIG FIVE ACCOUNTING FIRM FOR A NUMBER OF YEARS AND HAS BEEN AN ADJUNCT PROFESSOR OF LAW AT STETSON UNIVERSITY COLLEGE OF LAW SINCE 2002 TEACHING STATE AND LOCAL TAX, ACCOUNTING FOR LAWYERS, AND FEDERAL INCOME TAX I. YOU CAN READ MORE ABOUT MR. SUTTON IN HIS FIRM BIO.
ADDITIONAL RESOURCES
FL TAX ALERT – USED CAR DEALERS TARGETED!!!!, January 19, 2013, by James Sutton, CPA, Esq.
CLOSE BUSINESS TO AVOID LARGE FL SALES TAX ASSESSMENT?, July 7, 2013, by Jams Sutton, CPA, Esq.
WHAT SERVICES ARE SUBJECT TO SALES TAX IN FLORIDA?, May 1, 2012, by James Sutton, CPA, 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.