What To Expect in a

Florida Sales Tax Audit?

The prior Tax Tip planted the seed that we are going to talk Florida Sales Tax audits for a while! Not a pleasant topic, so thank you for sticking with me!

Have you received a Notice of Intent to Audit or ever been audited by the Florida Department of Revenue (the “FDOR”)? If so, you know audits can be daunting. Audits are time-consuming, detailed, and designed to uncover issues—which could end up costing your business significantly.



Here’s a quick look at the four (4) main areas the FDOR typically reviews during a sales and use tax audit:

1️⃣ Sales

Have all sales been reported correctly, and were the exempt sales properly documented?



2️⃣ Fixed Assets

Was sales tax paid on all taxable fixed asset purchases?



3️⃣ Consumables

Are you paying sales tax on everyday operational purchases (like office supplies, taxable services, automobile expense, repairs to tangible personal property, etc.)?



4️⃣ Commercial Rents

Tax on commercial rents will become extinct effective October 1, 2025. However, audits do go back in time, so it is still an issue that will come up in an audit, and it manages to catch many by surprise, as Florida is the only U.S. state that imposes sales tax on commercial rent—and, to make things trickier, in recent years commercial rents have been taxed at different rates than other taxable transactions.



🧾 A Few Key Rules to Remember:

📄 Documentation Requests:

The Department often asks for more information than what I think is reasonably necessary for a compliance audit.

⚖️ Presumption of Taxability:

If there’s any uncertainty about a transaction, the FDOR typically assumes it’s taxable—unless you can prove otherwise.

⏳ Deadlines and Procedures Matter:

There are strict deadlines and procedures that must be followed during an audit. Missing one could mean losing important rights or incurring extra costs.

📬 Have you received an audit notice?

If so, don’t wait! Reach out to us right away. We can help you prepare, respond, and reduce the risk of overpaying.

A quick review now could help avoid a long and expensive audit or appeal later



Stay tuned for the next Tax Tip in which I will talk about what to expect in an audit.

I love to talk tax—so you don’t have to. 😉

Warmly,
Nydia – The Florida Tax Girl
🌴 Saving Floridians from sales tax confusion, one emoji-filled tip at a time.