What To Expect in a

Florida Sales Tax Audit?

Hello again, my fellow Florida tax aficionado! 🌴📊

Thanks for sticking with me through the twists and turns of Florida sales tax. In this series of Tax Tips, we’re diving into one of the more nerve-racking parts of business life: the dreaded sales tax audit 😱 — but don’t worry, I’ve got your back!

Audits often start with a friendly enough phone call from the Department of Revenue (DOR), though let’s be honest — in today’s world of robocalls and voicemail black holes, that first call might not always land where it should. 📞🤷‍♀️

What matters most is the official start of the audit: the Notice of Intent to Audit (Form DR-840). Once you receive this, you have a 60-day Preparation Period — during which the DOR is legally prohibited from beginning the audit unless you waive that right.

⚠️ Pro Tip: We strongly (and I mean STRONGLY) recommend you do NOT waive this period. Use it wisely — use it to PREPARE! ✅



🧩 Let’s Break It Down –
4 Key Steps to Prepare

1️⃣ Step 1: Be Selective & Strategic With Documentation

Just because the auditor asks for everything doesn’t mean everything is necessary. The auditor may request the “negative universe”, but not all the documentation requested is relevant. Think before you send — scope matters! 🔍📁

2️⃣ Step 2: Review Before You Submit

Would that spreadsheet or bank statement confuse someone not in your business? For example, if you provide bank statements, an auditor might assume that all the deposits are sales revenue. But maybe it’s not — could those deposits be refunds, transfers from other company accounts, loans. Context is key! 💡💸



3️⃣ Step 3: Reconcile With Federal Returns

The DOR has access to data like your 1099-Ks and federal tax returns. The auditor will use these reports to verify sales and expense. Make sure your sales figures match across reports — mismatches can raise red flags 🚩. For example:

• Gross receipts on your federal taxreturn should match gross sales reported to the Department.
• Rent expense on the federal tax return should line up with rent ledgers and invoices (which have sales tax itemized!).

If they don’t match, guess what? The DOR will assume you owe the tax and shift the burden for you to prove (and I mean prove) otherwise. Ouch! 😬

4️⃣ Step 4: Keep Your Books Audit-Ready Year-Round

Good audits start with good bookkeeping. Don’t wait until you’re under review to clean up the books. Seemingly minor decisions (like invoice dates or purchasers’ names), may not matter for federal tax purposes, but could have major consequences in a sales tax audit. Details matter! 🧾🧠



📬 Got an Audit Notice?

Don’t panic. Just reach out! We can help you prepare, organize, and respond — so you don’t overpay or get blindsided. A little guidance now can save a lot of time (and money) later. 💸⏳

Warmly,
Nydia – The Florida Tax Girl
Saving Floridians from sales tax confusion, one Tax Tip at a time. 🌞💼