Going through a Florida sales tax audit is about as much fun as getting an abscessed tooth drilled into, but there is now a silver lining to going through a Florida sales tax audit. During the 2020 Florida legislative session, the Florida Legislature changed Section 213.21 clarifying/expanding the ability for business owners to file sales tax refund claims but only IF you have been through a sales tax audit. Specifically, the change provides the statute of limitations (how far back one can go to file a refund) is paused (called “tolled”) during the audit and while an appeal (protest) for an audit is ongoing. The Department of Revenue issues an emergency rule about this revised statute and the rule went into effect July 1, 2020.
The Florida Department of Revenue has implemented Emergency Rule 12ER20-8. This Emergency Rule states the statute of limitations for filing a refund is generally three years from when the tax was paid. However, the Florida Department of Revenue’s Emergency Rule provides the exception mandated by the Florida Legislature, that is, the refund period can be paused while appealing the audit.
What can be really important for business owners here is the opportunity to review for potential sales tax refunds even after the sales tax auditor has closed the field portion of the audit as long as the business is timely challenging the audit results. In other words, there may be an opportunity to turn a bad audit into a refund. Contact our sales tax attorneys today if you are unhappy with your Florida sales tax audit results and would like a review as a free initial consultation. Our law firm fights the Florida Department of Revenue all day, every day on behalf of business owners. We might be able to spot potential refunds that you haven't thought of. What do you have to lose?
About the author: David Brennan is an associate attorney with Moffa, Sutton, & Donnini, P.A. His primary practice area is multistate tax controversy. David received a B.S. in Accounting and Finance, with a minor in Computer Science, from Florida State University. He worked as an accountant for a CPA firm before attending law school at Regent University. He received his Juris Doctorate in 2013 and was licensed to practice law in Florida in the same year. In 2015, David earned his Masters of Laws in Taxation from Boston University. As a former senior attorney for the Florida Department of Revenue, he handled informal protest appeals, among other things. You can read his BIO HERE.
AUTHORITY
Department of Revenue Emergency Rule 12ER20-8
ADDITIONAL RESOURCES
FL SALES TAX: BRACKET SYSTEM - ALCOHOL, published June 29, 2020, by David J. Brennan, Jr., Esq.
FLORIDA DISASTER PREPAREDNESS SALES TAX HOLIDAY, published May 24, 2020, by David J. Brennan, Jr., Esq.
FLORIDA SALES TAX BRACKET SYSTEM, published April 30, 2020, by David J. Brennan, Jr., Esq.
2019 FL BACK TO SCHOOL SALES TAX HOLIDAY, published June 29, 2019, by David J. Brennan, Jr., Esq.
FLORIDA SALES TAX FOR REMOTE SELLERS, published November 12, 2018, by David J. Brennan, Jr., Esq.
FLORIDA SALES TAX - VOLUNTARY DISCLOSURE PROGRAM, published April 9, 2018, by Jeanette Moffa, Esq.