One restaurant owner in Juno Beach is not having a good week. Massimo Giovannangelo, owner of County Line Italian Restaurant and Pizzeria, was arrested on Tuesday January 14, 2025 for sales tax fraud. The probable cause affidavit shows that his restaurant was behind more than $122,000 in sales taxes over the last year and a half. This is an extremely hard lesson to learn for a 36 year old about how serious sales tax can get for a business owner. Most people would be surprised to learn that even as little as $301 of collected but not remitted sales tax is a felony with up to 5 years in jail. Cross the $100,000 mark, like Massimo did, and you are looking at up to 30 years of jail time. The law really does not care that your business was just losing money and that you had no intent to “steal” the sales tax you collected. Sales tax is a trust fund and the business is holding the money on behalf of the state. If the business spends the money, even on payroll for employees, and the money is not available when the sales tax return is due – then that is still theft of state funds in the eyes of the law. Sales tax (and payroll taxes) are the only things that both are not dischargeable in bankruptcy and can land you in jail. But, for whatever reason, far too many business owners chose sales tax to delay paying when they are in financial trouble.
If your business (or your client’s business) is facing finical difficulties, then sales tax is the last thing you want to get behind in paying. I get restaurants are one of the hardest industries to consistently make a profit. I can’t begin to count the number of restaurants we have represented in sales tax fraud cases. It is almost always the same story. They were just not making a profit. They wanted to make sure rent was paid, employees were paid, and vendors had to be paid – all to keep the restaurant operating. So, they skipped paying the sales tax one time with every intention of making it up next month. They just knew they could turn it around next month. And next month and the next month. Before you know it, the restaurant owner has maxed out their credit cards, wiped out their home’s equity borrowing against it, and they are thousands of dollars of debt to vendors and their landlord. Worst of all…. the business owner is now tens of thousands of dollars behind in sales tax to the state of Florida.
Our law firm has been representing business owners before the Department of Revenue for more than 30 years and has handled hundreds of criminal investigations for sales tax fraud as well as post arrest representation with the state attorney’s office and in court. We are on a first name basis with most of the investigators and they know we resolve cases. Sales tax fraud is not your typical criminal case because you need a criminal attorney that not only knows the court system, but also sales tax and the agency that handles sales tax – The Florida Department of Revenue. No law firm in Florida has done more work representing businesses for sales tax fraud than Moffa, Sutton, & Donnini, PA. If you have a criminal sales tax investigator show up at your business, shouldn’t you at least want to talk to someone that really knows the ins and outs of this area of the law?
About the Author: James Sutton is a Florida licensed CPA and attorney as well as a partner in Moffa, Sutton, & Donnini, PA. Mr. Sutton is charge of the Tampa office of the firm and practices almost exclusively in the area of Florida Sales & Use Tax Controversy. Mr. Sutton handles audits, protest, litigation, criminal cases, revocations, collections, and consulting engagements all in the area of sales tax. Mr. Sutton is the State and Local Tax Chairman for the AAA-CPA and past president of the Florida AAA-CPA. For 2022 to 2024, Mr Sutton was the Chairman for the State Tax Committee for the FICPA. You can learn more about Mr. Sutton in his firm bio HERE and you call him directly at 813-775-2131.
About the Firm: 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 Florida businesses against the Florida Department of Revenue since 1991 and have over 100 years of cumulative sales tax experience within our firm. Our partners are both CPAs/Accountants and Attorneys, so we understand both the accounting side of the situation as well as the legal side. We even have former sales tax auditors on staff. We represent taxpayers and business owners from the entire state of Florida. Contact us for a FREE INITIAL CONSULTATION to confidentially discuss how we can help put this nightmare behind you.
ADDITIONAL RESOURCES
Florida – Restaurant Sales and Use Tax Audits, published November 6, 2020, by James Sutton, CPA, Esq.
RESTAURANT FLORIDA SALES TAX HANDBOOK, published January 4, 2018, by James Sutton, CPA, Esq.
FLORIDA SALES TAX AUDITS PROCESS AND TRAPS, published March 4, 2023, by David Brennan, Esq.
FLORIDA SALES TAX INFORMAL WRITTEN PROTEST, published November 17, 2018, by James Sutton, CPA, Esq.
FL Sales tax audit – From Audit Notice (DR-840) to NOPA, published September 17, 2023, by Matthew Parker, Esq.
DON’T HIRE AN IRS ATTORNEY FOR SALES TAX PROBLEMS!, published July 17, 2024, by James Sutton, CPA, Esq.
FL SALES TAX AUDITS – AUDITING YOURSELF BEFORE A STATE DOES, published October 23, 2023, by Matthew Parker, Esq.
FL TAX ALERT – 200% PENALTY STINGS BUSINESS OWNER, published March 24, 2013, by James Sutton, CPA, Esq, and Gerald Donnini, Esq.
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