Here are some of the most common tax problems faced by taxpayers, typically businesses, in the state of Florida. Our extensive experience dealing with the FL DOR can help you navigate all these issues.
FL DOR Audits
The FL DOR audits businesses to determine whether they've been collecting, reporting, and paying their state taxes correctly. The FL DOR can audit you for all 36 types of taxes it administers, including sales and use tax, reemployment insurance tax, corporate income tax, and tangible personal property tax.
The auditing begins with a taxpayer receiving a Notice of Intent to Audit Books and Records. Then, you submit information and documents so the auditor can review your return and make changes if they find any mistakes. If you agree with the facts of the audit but disagree on how tax law should be applied, you can dispute the case. If you agree with the audit findings, you're expected to pay the amount due, if any.
FL DOR Collections
If you've received a Notice of Delinquency or Notice of Amount Due from the FL DOR, it means you haven't been filing returns, paying taxes, or you've underpaid the tax you owe.
You have time to respond, but the faster you act, the less damage you'll have to deal with. For starters, if you don't pay the taxes, the penalties and interest start accruing. If the debt is still unpaid in 90 days, a 10% administrative collection processing fee is added to your tax debt.
If you still don't respond and the case escalates, the Department may file liens against your property, freeze your bank account, and even revoke your sales tax registration and your business and professional licenses. If you're getting DOR notices, you might also be getting IRS notices – we can help with that, too.
Unfiled Tax Returns & Penalties
Failing to file taxes in Florida can lead to significant penalties and legal repercussions. The DOR imposes a 10% penalty of tax due assessed every month a return is late or unpaid. Even if you owe no tax, you could still get a minimum penalty fee of $50 for late filing.
For corporations, late filing attracts a 10% penalty on all the unpaid tax per month, and it can go up to 50%. If no tax is due, the penalty is $50, but it can go as high as $300 for not filing. We can help you get on top of unfiled tax returns.
Disputed Assessments
The FL DOR allows taxpayers to dispute any tax assessments they might not agree with. This could be audit results, assessments on tax returns, and refund denials.
If you're planning to protest any matters, you must submit a written request within the set period to the Informal Dispute Resolution (IDR). The IDR is in charge of evaluating the taxability of transactions based on state tax law. If you want to dispute an assessment, be sure to meet the deadlines; otherwise, the department won't consider the request.