Dealing With A Florida Sales Tax Audit: How To Protect Your Business

For Florida business owners, few things are more stressful than getting a letter from the Florida Department of Revenue (DOR) announcing a sales tax audit. Even if you’ve tried to stay compliant, mistakes can happen, and the DOR is aggressive in collecting unpaid taxes, interest, and penalties.

At Ronald Cutler, P.A., our Florida tax-IRS attorney has over five decades of experience representing Florida taxpayers in audits, disputes, and complex tax matters. As a CPA and former FBI Special Agent, Mr. Cutler helps businesses across Florida prepare for, respond to, and resolve state tax audits, including sales and use tax issues.

What Triggers a Florida Sales Tax Audit?

Sales tax audits in Florida are increasingly common and can impact businesses of all sizes, from retailers and restaurants to contractors and service providers. The Florida Department of Revenue conducts these audits to identify uncollected or underreported taxes. You may be audited if:

• You consistently file late or show reporting discrepancies.
• There’s a significant drop in reported sales without explanation.
• A whistleblower or customer reported you.
• Your business operates in an industry known for cash transactions, such as food service or hospitality.
• You were selected through a random audit or industry comparison.

As part of a Florida sales tax audit, the DOR may examine three years’ worth of records, or more if fraud is suspected, and request bank statements, invoices, exemption certificates, and sales records.

How to Protect Your Business During a Florida Sales Tax Audit

Sales tax audits are complex. Not responding to DOR notices, failure to provide the appropriate information, or other mistakes can result in steep penalties.

If you are a Florida business owner and receive notice of a sales tax audit, take these steps immediately to protect yourself and your rights:

• Stay on top of communications with the DOR, as delays can raise red flags.
• Organize all business records, including receipts, cash logs, and tax filings.
• Verify that resale and exemption certificates are current and valid.
• Do not provide original documents. Keep those for yourself, submit copies instead, and closely track all communication.
• Avoid speaking with auditors alone and let an experienced Florida tax attorney handle all communications.
• Review prior returns for errors that may need correction before the audit begins.

Florida sales tax law is highly technical, and many audits result in assessments due to misunderstanding exemptions or recordkeeping rules, rather than fraud. Our experienced tax attorney can help you respond appropriately, defend legitimate business practices, and reduce or eliminate assessed penalties.

Facing A Sales Tax Audit? Get Trusted Legal Help From Our Experienced Florida Tax-IRS Attorney

A Florida sales tax audit can disrupt your business and result in costly consequences. Getting trusted legal guidance early in the process helps you prepare your records, assert your rights, and resolve the matter efficiently.

At Ronald Cutler, P.A., we understand the pressure business owners face and offer knowledgeable, experienced support through every stage of the audit process. To get our Florida tax-IRS attorney on your side, contact our office today to schedule a consultation.

Sources:

floridarevenue.com/taxes/compliance/Pages/audit.aspx#:~:text=The%20Department%20asks%20the%20taxpayer,generally%20accepts%20the%20taxpayer’s%20responses.

leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0200-0299/0212/0212.html