Amanda Ribeiroon July 17, 2026Amanda Ribeiroon July 17, 2026Receiving a DR-840, Notice of Intent to Audit Books and Records, from the Florida Department of Revenue can be unsettling. For many business owners, it raises immediate questions: Why was my business selected? What records do I need to provide? How long will this take?
The good news is that a Florida sales tax audit follows a structured process. Understanding what to expect—and responding strategically from the outset—can make the audit more efficient and help avoid unnecessary issues.
The audit officially begins with the issuance of the DR-840. After the notice is issued, the taxpayer generally has 60 days to assemble the requested books and records, while the Department has 120 days to begin the audit.
Shortly after the notice is issued, the assigned auditor will typically provide an information request identifying the records needed for the audit period. Although every audit is different, common requests include:
For many businesses, the volume of requested information can feel overwhelming. Three years of accounting records often represent thousands of transactions and hundreds of supporting documents.
It is important to remember that the auditor's request is only a starting point. Some requested records may not apply to your business, while other documents not specifically requested may provide valuable context. Producing records without first understanding why they are being requested can unintentionally create confusion or prolong the audit.
Taking the time to organize records before production often leads to a more efficient examination.
Once the initial records have been assembled, the auditor will schedule an opening conference, sometimes referred to as the kickoff conference.
Although this meeting is often viewed as a procedural formality, it is one of the most important stages of the audit.
The conference gives both the auditor and the taxpayer an opportunity to establish a common understanding of the business before the substantive review begins. During the meeting, the auditor will typically discuss:
This discussion provides important context for the records that have been submitted. Businesses frequently have industry-specific practices, specialized revenue streams, or unique accounting procedures that are not immediately apparent from financial reports alone. Addressing those issues early can reduce misunderstandings and help the auditor focus on the transactions that truly matter.
The kickoff conference also establishes expectations for the remainder of the audit. Before concluding the meeting, the parties will generally discuss:
Although the conference is intended to be collaborative, taxpayers should remember that it is still part of an active tax examination. Questions should be answered accurately and succinctly. If additional research is needed before responding to a technical question, it is entirely appropriate to explain that additional information will be provided after confirming the relevant facts.
A well-prepared kickoff conference establishes credibility and helps ensure the audit proceeds based on an accurate understanding of the business rather than assumptions.
Following the kickoff conference, the auditor begins reviewing the records provided.
This phase is often the quietest portion of the audit. Depending on the complexity of the business, the review may take several weeks or several months. While occasional follow-up questions are common, businesses frequently receive little feedback until the auditor has completed their analysis.
Under Florida law, the Department generally has one year from the issuance of the DR-840 to complete the audit and issue a proposed assessment. Because the administrative review process itself requires several months, the auditor's examination of the books and records typically must be completed within approximately nine months.
If additional time is needed—often because of the volume of records or the complexity of the issues involved—the Department may request that the taxpayer extend the audit period. Whether to grant that extension is a strategic decision that should be evaluated based on the circumstances of the audit.
This stage also highlights why the initial document production is so important. The auditor's conclusions can only be as accurate as the information provided. Well-organized records and timely explanations often result in a more efficient review and reduce the likelihood of unnecessary adjustments.
Many Florida sales tax audits begin with relatively straightforward questions before evolving into broader issues.
An auditor may initially identify a missing resale certificate, a questionable exempt sale, or an untaxed purchase. Once a pattern is identified, however, the Department often expands its review across the entire audit period. What begins as a small issue affecting only a handful of transactions can quickly become a significant assessment when applied over three years, with interest and penalties added.
In many cases, the largest assessments are not the result of intentional noncompliance. They stem from misunderstandings of Florida's complex sales and use tax laws or incomplete supporting documentation.
Experienced audit representation helps ensure that records are presented accurately, technical issues are addressed proactively, and communication with the Department remains organized throughout the examination. Just as importantly, it allows business owners to remain focused on operating their businesses rather than managing the audit process.
Receiving a Florida sales tax audit notice does not mean your business has done anything wrong. It simply marks the beginning of a formal review by the Department of Revenue.
Understanding the audit process, organizing your records, and responding strategically from the outset can significantly improve the efficiency of the examination and help avoid unnecessary disputes.
At Ribeiro Law, we focus exclusively on state and local tax matters. We have represented businesses through every stage of the Florida sales tax audit process—from the initial DR-840 notice through administrative appeals and litigation. Whether you need guidance gathering records or full audit representation, we can help you navigate the process with confidence.
Last reviewed on July 2026
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