As a state and local tax attorney, to say that celebrity news relating to my field is infrequent would be a gross overstatement. Today is one of those rare occasions where the venn diagram of headline news, and sales tax, has an overlap. According to the Tallahassee Democrat, Cutthroat Kitchen star, and Tucker Duke’s restauranteur, Brian Cartenuto, has been arrested on charges of theft of state funds. This is an unfortunate speedbump in a rather prestigious culinary career. Mr. Cartenuto has cooked for such prestigious names as the James Beard House in New York, and Les Halles in Miami.
Section 212.15, Florida Statutes provides that any person who intentionally deprives or defrauds the state of its moneys, or fails to remit tax, is guilty of theft of state funds. These charges can get very serious as the dollar values increase. Failure to remit in excess of $100,000 is a first degree felony, punishable by jail time, probation, and the potential loss of certain civil liberties associated with having a felony conviction. Mr. Cartenudo was charged with a second degree felony, at $22,000 of alleged tax collected not remitted. Tucker Duke’s was open in Tallahassee for six months, but apparently DR-15, Sales and Use tax returns, were only filed for two of those months. Each unfiled return constitutes an additional misdemeanor charge. The article also mentions that the Department of Revenue reached out several times to speak to Mr. Cartenudo, to no avail. All too often, small business owners do not recognize the ramifications of ignoring the Florida Department of Revenue, most people do not realize that the Department has the authority to initiate criminal investigation and file charges relating to sales tax. While it is unlikely this restauranteur will face jail time, the filing of charges could have been avoided if handled by a professional from the early stages of investigation.
If you are a business owner being contacted by the Department of Revenue, educate yourself. Know there are systems that allow individuals, or their state and local tax attorney, to enter into a payment plan and potentially avoid letting the issue go as far as charges being filed. 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 Moffa, Sutton, & Donnini, PA, 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: Ms. Levine is an associate attorney with the Law Offices of Moffa, Sutton, & Donnini, P.A. Her primary practice area is Florida tax controversy, including criminal proceedings for state tax issues. Ms. Levine received a B.S. in Accounting from University of Central Florida. She spent several years working in public accounting before attending Nova Southeastern University Law School. She received her Juris Doctorate in 2014. During her time at Nova Law, Ms. Levine was the Executive Justice of Academics for the Moot Court Honor Society, as well as the Finance Chair. She was awarded by the National Order of the Barrister, a national honor society which encourages oral advocacy and brief writing skills. You may contact Amanda via email at AmandaLevine@FloridaSalesTax.com or 954-642-1088.
Additional Resources
WHEN A CLOSED BUSINESS ISN’T CLOSED TO FL DOR, September 26, 2014, by Matthew Parker, Esq.
FL TAX – VOLUNTARY DISCLOSURE CAN BE THE PERFECT SOLUTION, published October 5, 2012, by Jerry Donnini, 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.
MORE ARTICLES ABOUT FLORIDA SALES TAX ARRESTS