If you have received a DR-840, Notice of Intent to Audit Books and Records for Sales and Use Tax from the Florida Department of Revenue, and you have questions or are in need of assistance, Finnell Legal can help.

 

You are probably wondering what you did, or didn’t do, to receive this notice. One reason could be that your company’s exempt sales ratio fell outside the average range for similar companies in your industry. Another reason could be a discrepancy between your monthly sales and use tax returns and your reported gross sales on your federal income tax returns. Or, it simply could be that your company was randomly chosen for the audit.

 

It is important to understand what information you need to prepare, and to have your records organized and ready to present in order to keep the process moving forward as quickly as possible. After your business’s initial documentation is submitted to the Florida Department of Revenue, additional information will be requested by the department, such as records for sample months, which could include up to 6 months of records. Once all records are reviewed, you will receive a DR-1215, Notice of Intent to Make Audit Changes (also referred to as the audit report). There are often issues with this report due to the fact the auditors are missing information, or they are in need of an explanation for some of the information submitted. For this reason, you have 30 days to request a conference to discuss the findings and resolve the issues.

 

If it is found that your business taxes are in arrears, you could be facing severe penalties that could lead to the freezing of your bank account, a lien on your credit report, seizure of property, penalties up to 100% of the tax due, license or business registration revocation, and even a warrant for your arrest. 

 

Don’t go through the Sales and Use Tax audit process alone. Finnell Legal can help you navigate the audit process from the beginning so your focus can remain on running and managing your business. Contact us today for more information.

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