Defending Your Business During a Tax Audit
Is your business under a Florida tax audit?
For business owners, being notified and going through the procedure of a Florida sales tax audit can be a daunting proposition. The process begins with your receipt of Form DR-840, Notice of Intent to Audit Books and Records, from the Florida Department of Revenue (DOR). The auditor will be looking for violations of Florida tax law and whether additional taxes, along with penalties and interest, can be assessed against you.
You should understand from the start that a Department of Revenue auditor's job is NOT to help you accurately determine your tax liabilities. THE AUDITOR'S JOB IS TO FIND ADDITIONAL TAXES DUE. It is that simple. If the auditor can call into question an entry or record, then the auditor will do so - and usually project that one record across the entire 3 year audit period exponentially increasing your proposed Florida tax assessment.
What is really scary is that the Florida Department of Revenue auditor has the power to estimate what taxes you owe with the presumption of accuracy by statute. The burden is on the taxpayer to prove the auditor is wrong! Missing records have caused more sales tax assessments than you can imagine.
- Do You Own a Gas Station or Convenience Store? HIGH ALERT – READ MORE.
- Do You Own a Car Dealership? HIGH ALERT - READ MORE.
Facing an assessment due to "SALES TAX ON INTERCOMPANY RENT?" If you are, then CLICK HERE to read an article on the topic.
What to Expect in a Tax Audit
Particularly with a business, the DOR will look for instances where your business has collected sales tax from customers but failed to remit all or part of these monies to the state. Collecting but not remitted Florida taxes (think Sales Tax or Unemployment Tax) is one of the worst possible things a business owner can do with regard to Florida taxes.
If you consider penalties and interest to be painful, then you might be surprised to find out that collecting but not remitting Florida taxes can land a business owner in jail. Under Florida law, collecting but not remitting these "trust fund taxes" is considered stealing from the state and the business owner and employees can be charged with as high as a felony under certain circumstances.
If you're dealing with a Florida sales tax audit, then CLICK HERE for info.
Why You Need a Sales Tax Audit Lawyer
Even if you feel you have been compliant, we strongly recommend that you do not represent yourself during as Florida tax audit. The Florida Department of Revenue auditors have many tricks up their sleeves that can limit your rights under Florida law. It is vital to have a knowledgeable and experienced tax professional to assist you through all stages of the audit, from the initial notice through to its conclusion.
We challenge you to find a more hard-hitting Florida sales tax audit lawyer to represent you during a Florida tax audit than you can find at the Law Offices of Moffa, Sutton, & Donnini, P.A. This is simply what we do. For over 50 years as attorneys and even more as CPAs, our attorneys have focused on assisting businesses faced with tough tax situations and we are ready to bring our experience and dedication to work for you.
Call Us for Florida Tax Audit Protection
The DOR will ask to either do a "Desk Audit" in one of their offices or a "Field Audit" at your place of business. You should consider saying "NO" to either request, or better yet, let us say no for you. Do not let an auditor into your business; make the auditor come to your tax professional's office.
At the Law Offices of Moffa, Sutton, & Donnini, P.A., we know how to "control" the audit, so the auditor does not go on a "fishing expedition" (looking for ways to accuse your business of under paying tax). While sales and use tax are commonly the types of Florida taxes that are audited, corporate income tax and others can come under DOR review.
All auditors request certain records and ask questions regarding your business and accounting methods. Often the auditor will ask for things that (s)he has no right to demand or will ask the taxpayer to sign documents that the taxpayer does not have to sign. We know the games the Florida Department of Revenue auditors play and how to defend against them. With more than five decades of experience as attorneys and CPAs, our firm strives to assist you no matter the type of tax that is being audited.
The Florida Department of Revenue auditor has the authority to assess additional taxes plus penalties and interest. They can also give your case over to the DOR criminal investigation division. Florida Department of Revenue auditors may be highly trained in tax law, but they have been taught to constantly suspect you are underpaying tax and ways to prove it. Don't you want your tax professional to have greater knowledge and experience than the auditors, who are coming to your business to LOOK for ways to accuse you business of underpaying Florida taxes?
Protect your taxpayer rights. Contact a Florida sales tax attorney if your business us under a tax audit!
