Florida Sales Tax Audit Defense & Representation Before the Department of Revenue

What the Department of Revenue Is Looking For

The issues an auditor examines depend on the business’s operations, records, transaction types, and tax positions. The following are the most common categories of audit findings.

Unremitted Sales Tax on Taxable Transactions
The auditor will review the business’s sales records and tax returns to identify transactions on which tax should have been collected but wasn’t. This may include taxable services that the business misclassified as non-taxable and transactions in which tax was collected but not remitted in full. The business’s transaction records and explanation of its operations are directly relevant to evaluating proposed adjustments.

Exempt Sales Without Proper Documentation
Florida law places the burden on the seller to prove that an exempt sale was legitimate. If a business made sales without collecting tax, it must produce valid exemption certificates to support those transactions. Missing, expired, or invalid certificates may lead the Department to treat exempt sales as taxable in its calculations. Whether a transaction is properly supported depends on the applicable exemption, the transaction facts, and the documentation available for review.

Use Tax on Taxable Purchases
Florida’s use tax applies to taxable goods and services purchased without paying Florida sales tax. Common examples include purchases from out-of-state sellers who didn’t collect Florida sales tax and items removed from inventory for internal use. Auditors review purchase records and accounts payable to identify items that may have been subject to use tax. The tax treatment of a purchase depends on the goods or services involved, the transaction facts, applicable exemptions, and whether tax was paid at the time of purchase.

What a Sales Tax Audit Attorney Does for You

Manages All Department of Revenue Communications
The audit representation process includes managing the flow of information between the business and the Department. With proper authorization, communications can be directed to counsel rather than the business’s employees or owners. We organize responses to records requests, provide relevant factual context, and address questions within the scope of the examination. Without counsel, owners and employees may inadvertently volunteer information beyond what the auditor requested and unnecessarily expand the review.

Negotiates Scope & Methodology
The audit period, transaction types under review, and sampling methodology may be open to discussion based on the records and issues involved. We can evaluate a proposed sample against the transaction population and the facts of the business, challenge unsupported assumptions, propose an alternative sample, or request a transaction-by-transaction review of specific issues. Decisions about scope and methodology can materially affect a proposed assessment.

Challenges Proposed Assessments
After the Department issues a Notice of Intent to Make Audit Changes and later a Notice of Proposed Assessment, the business may contest the findings before the assessment becomes final, subject to the deadline on the applicable notice and current Florida law. We can review the auditor’s workpapers, identify legal and factual errors in the calculations, gather documentation supporting the business’s position, and present a written challenge. The proposed assessment should be evaluated against the notice, workpapers, transaction records, and applicable law.

Files Protests & Appeals
If the proposed assessment isn’t resolved at the field level, the business may file a written protest seeking review by the Department’s Informal Dispute Resolution group in Tallahassee. A written protest must be filed within the deadline stated on the applicable notice and must comply with Florida Administrative Code Rule 12-6.003. Failing to challenge a proposed assessment on time can cause it to become final and bar later legal proceedings, subject to limited statutory exceptions. If the dispute remains unresolved after Informal Dispute Resolution, a formal administrative hearing may involve the Division of Administrative Hearings and an Administrative Law Judge. Businesses seeking a sales tax audit appeal lawyer in Florida can work directly with Amanda Ribeiro through the initial protest and formal administrative proceedings.

At Ribeiro Law, we represent businesses before state departments of revenue from the initial notice through protest, appeal, and litigation. Consultations are available by phone, video, and in person. Contact us online to discuss your situation.