BRANDON RESTAURANT OWNER – FACING 15 YEARS IN PRISON FOR SALES TAX THEFT
On July 23, 2015, [name omitted], former owner of BCGB Unit 1, Inc. (doing business as Big City Grill Co.), located at 2490 West Brandon Boulevard, Brandon, Florida was arrested by the Hillsborough County Sheriff's Department on felony charges concerning theft of more than $31,000 in sales tax allegedly collected but not remitted to the state as well as a failure to file six consecutive sales tax returns. The Lutz, Florida resident faces up to 15 years in prison and up to $10,000 in fines in addition to repayment of stolen taxes, interest, and investigation expenses. According to investigators, [name omitted] collected sales tax from customers at the restaurant but during periods of March 2013 through December 2014, he failed to file sales tax returns as mandated by Florida law and he failed to remit the sales taxes to the state.
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. Restaurants 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. 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. 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.
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. While not required by law, we suggest that business owners open a separate bank account for sales tax collections. This will help prevent the inadvertent use of sales tax during hard times, which is unfortunately just as likely to land you in jail as the intentional theft of state funds.
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 attorney's office to enter into a payment plan, such as a deferment or pre-trial intervention programs. While the monetary sanctions can be harsh, it is better than losing one's freedom. Like any other crime, anything said by you can be an admission of guilt that 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 an almost exclusive focus 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. Because we also hand the audit and collections side of Florida sales tax, we understand the big picture of not only the investigation and state attorney's side of the situation, but also the collections and potential audit consequences after the criminal side of your situation is over. We represent taxpayers and business owners from the entire state of Florida. Call our offices today for a FREE INITIAL CONSULTATIONto 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 AREA 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, AND AT BOSTON UNIVERSITY COLLEGE OF LAW TEACHING SALES AND USE TAX SINCE 2014. YOU CAN READ MORE ABOUT MR. SUTTON IN HIS FIRM BIO.
ADDITIONAL RESOURCES
ORLANDO USED CAR DEALER ARRESTED FOR SALES TAX, published June 3, 2015, by James Sutton, CPA, Esq.
JACKSONVILLE RESTAURANT OWNER – FACING 15 YEARS IN PRISON FOR SALES TAX THEFT, published November 10, 2014, by James Sutton, CPA, Esq.
JAILED FOR MERE $1,500 FL SALES TAX – ORLANDO SIGN COMPANY OWNER, published July 6, 2014, by Matthew Parker, Esq.
FL TAX ALERT – CONVENIENCE STORE OWNERS TARGETED!, August 16, 2012, by James Sutton, CPA, Esq., and Jerry Donnini, Esq.
FL TAX – VOLUNTARY DISCLOSURE CAN BE THE PERFECT SOLUTION, published October 5, 2012, by Jerry Donnini, 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.