Florida Tax Procedure: A Primer

If you get audited by the Florida Department of Revenue, you may need to hire a tax attorney to help you navigate the process. The department has different offices that handle different aspects of the audit, such as auditing, technical assistance, and dispute resolution, as well as general counsel for formal protest or litigation. It’s important to understand how these offices work and how a tax attorney can help you during an audit. Florida law requires the tax department to conduct audits of taxpayer’s books and records. The department will send a Notice of Intent to Audit Books and Records, which lets the taxpayer know that they will be audited for a certain time period. The department usually has three years to start actions to collect taxes. If the auditor hasn’t started the audit within 120 days, the time period for collecting taxes may be limited. During a sales tax audit, the auditor will inspect the taxpayer’s books and records at a reasonable time and place. The taxpayer has about 60 days to get their records ready. The actual audit can take a few days to over a year, but the time limit for the audit is one year. If the audit takes longer, the parties can agree to extend the time limit. During the audit, the taxpayer and auditor may have disagreements, and they can ask for help right away. The state government can give advice on tax laws during the audit, but they don’t have to if they don’t want to. If you disagree with the tax assessment from the Department of Revenue, you have a few options to dispute it. You can request an informal review within 60 days of receiving the assessment. This review is done by someone separate from the auditor who made the assessment. If the informal review doesn’t resolve the issue, you can file a formal protest under the Administrative Procedures Act or take your case to court. If you don’t take any action within the time limits, the assessment becomes final. It’s important to know that interest will be added to any unpaid amounts during the protest process. So, it’s important to act quickly if you disagree with the assessment. If the person reviewing your taxes agrees with the auditor, your taxes will stay the same. If they think the auditor made a mistake, they can reduce or get rid of the taxes you owe. There’s no limit to how much they can reduce or get rid of. If you disagree with the tax decision made by the Florida Department of Revenue, you have some options to challenge it. You can either ask for an informal review or file a formal protest. During an informal review, the department can compromise on taxes up to $250,000, but once the decision is final, you can appeal it in court or through the Administrative Procedures Act. The deadline to file a protest is 60 days after the decision is final, and you can send it by mail or fax. It’s important to meet this deadline because it can’t be extended. If a taxpayer disagrees with a tax assessment, they can either file a court action or request a formal hearing with the Division of Administrative Hearings. In both cases, they must pay the uncontested amount of the tax, penalty, and interest. If they don’t, their case will be dismissed and they’ll face an additional penalty. In an administrative hearing, the department only needs to prove they assessed the tax, and then the burden of proof shifts to the taxpayer to show it’s wrong. The taxpayer can also request an informal hearing, but they can’t dispute the facts in this type of hearing. If the department doesn’t follow the rules for scheduling a hearing or giving notice, they could lose the case. This article provides guidance on the legal procedures for tax disputes in Florida. It explains the different phases of the process and emphasizes the importance of meeting deadlines. It also discusses the role of attorneys in representing taxpayers and ensuring that all necessary documentation and legal arguments are provided to the department. The article also mentions the necessity of obtaining a written final order from the department within 90 days after the conclusion of a hearing. It concludes by highlighting the importance of timing and vigilance in navigating the tax dispute process. Robert Babin and Yvonne Gsteiger work for the Department of Revenue in Florida. They are experts in tax law and have received advanced degrees in taxation and law from universities in Florida. The opinions expressed in this article are not official positions of the Department of Revenue. This article is submitted by the Tax Section of the Florida Bar.

Source: https://www.floridabar.org/the-florida-bar-journal/florida-tax-procedure-a-primer/