IF YOU DON'T PAY ATTENTION TO THE NOTICES, THEN THE DOR WILL FIND AND LEVY YOUR FUNDS
Starting March 1, 2012, the Florida Department of Revenue began using a new "predictive behavioral model" called "COLLECTION ANALYTICS" to much more quickly track down and seize funds of taxpayers who are delinquent in filing returns or paying taxes. The new system, recommended by Accenture, will analyze data from various federal and state resources to better predict where a company has or will have funds. The Florida Department of Revenue will then move in automatically to levy/seize the funds with no additional warning.
Historically, the Florida Department of Revenue would automatically send out notices for delinquent returns, followed by more (not quite as nice) notices, followed by a couple of threating notices, then a Florida tax warrant with an estimate of the taxes due, plus penalties and interest. Eventually, the matter would be taken over by a collection agent at the local level who might initiate a lien on the bank account normally used to pay the unpaid tax. If that account proved fruitless, then the local collection agent would begin searching for other accounts or assets as time allowed. This lackadaisical way of collecting allegedly due taxes is no more. Now the system is automated and without hesitation or sympathy for the taxpayer - usually after 90 days of deliquincy.
The data used by the new Collection Analytics system can come from a variety of sources. For example, the state unemployment tax returns could signal not only that there is an additional company bank account used for payroll, but also the frequency and timing of the funds flowing through the payroll account. The DOR's new system could use this data to effectuate a lien to be placed on the payroll account on the same day funds normally come into the account to meet a weekly or bi-weekly pay schedule. Imagine how quickly a company can be brought to its knees when the employee automatic deposits fail to happen on time.
Below is an announcement made in late 2011 by the Florida Department of Revenue regarding the new Collection Analytics system:
Revenue to Use New Tax Collection System
The Department will switch to a collection analytics system in early March. It will allow us to better focus our tax collection efforts to determine positive future tax payment outcomes, based on predictive behavioral models.
We will maximize collection outcomes by routing accounts to the collection step most likely to result in payment in the least amount of time, which will mean fewer follow-up notices and shorter time frames between collection and enforcement actions.
It is extremely important for taxpayers to respond promptly to bills and delinquency notices from the Department. Collection analytics should have no impact on taxpayers who file and remit their full amount of taxes on time.
The moral of this article is DO NOT IGNORE NOTICES FROM THE FLORIDA DEPARTMENT OF REVENUE for the collection/levy efforts will be swift and accurate like never before. If your company or your client's company receives any type of delinquent return or delinquent payment notice from the Florida Department of Revenue, you should take the matter very seriously. If you are not well versed in Florida tax law, then discuss the matter with a tax professional that is seasoned in Florida tax matters. If you do not have someone that qualifies as an experienced Florida state and local tax professional on your speed dial, then contact an attorney from The Law Offices of the Law Offices of Moffa, Sutton, & Donnini, P.A., which has more than 50 years of cumulative experience defending Florida tax payers against the Florida Department of Revenue.
If you company's bank account(s) have already been frozen by the Florida Department of Revenue, then the first thing you should know is that the funds are still there. The DOR has merely filed a lien against the account and requested your bank to "freeze" the funds making them not accessable by you. This is a strong arm tactic to get your company to pay moneys that the FL DOR believes you owe. Another thing you should know is that the FL DOR does NOT know how much money is in the account, a fact that might be used to your advantage. You should also know that any bank account with the same FEIN number as you business is susceptable to a lien. What you need to do now is to have someone negotiate with the FL DOR collection agent in charge of your account to help release some or all the funds. Our law firm assists many clients every month in negotiating the release of holds on the business bank accounts. A company's bank account is the lifeblood of any business and the FL DOR knows this. We can help negotiate with the FL DOR to help get part or all of the lien released. Then we can also help to determine whether the FL DOR's claim that you owe money is just. Even if the period of time to protest an assessment has long past, we still might be able to help.
Call or email our law offices today (top of this page) for a FREE INITIAL CONSULTATION if your company's bank accounts have been frozen by the Florida Department of Revenue.
ABOUT THE AUTHOR: MR. SUTTON IS A FLORIDA LICENSED CPA AND ATTORNEY AND A SHAREHOLDER IN THE LAW FIRM the Law Offices of Moffa, Sutton, & Donnini, P.A. MR. SUTTON IS IN CHARGE OF THE TAMPA OFFICE FOR THE FIRM AND HIS PRIMARY PRACTICE IS FLORIDA TAX CONTROVERSY. MR. SUTTON WORKED FOR THE STATE AND LOCAL TAX DEPARTMENT OF A BIG FIVE ACCOUNTING FIRM FOR A NUMBER OF YEARS AND HAS BEEN AN ADJUNCT PROFESSOR OF LAW AT STETSON UNIVERSITY COLLEGE OF LAW SINCE 2002 TEACHING STATE AND LOCAL TAX, ACCOUNTING FOR LAWYERS, AND FEDERAL INCOME TAX I. YOU CAN READ MORE ABOUTMR. SUTTON IN HIS FIRM BIO.
© 2012 All rights reserved - James H Sutton Jr