FORT LAUDERDALE CLUB OWNER ARRESTED FOR SALES TAX THEFT
On November 8, 2016, the Florida Department of Revenue (“FDOR”) announced [name omitted], was arrested by the Broward County Sheriff’s Office. The charges were that he allegedly collected over $22,000 in sales tax collected at two night clubs and failed to remit it to the state. The night club owner, who lives in Michigan, was charged with a felony count of theft of state funds and faces and faces up to 15 years in prison, up to $10,000 in fines, and potential penalty and investigative payment liabilities.
According the FL DOR’s press release, [name omitted], owner of MLG Brickell (DBA The Brick) 15 W LLC (DBA IKandy), and MLG Village (DBA Hagen-Dazs) collected tax from his customers. The Brick and IKandy are both nightclubs on Las Olas Boulevard in Fort Lauderdale and Hagen-Dazs was an ice cream shop in the Gulfstream Village Shops in Hallandale. However, from January through July 2012, the owner failed to remit the tax collected to the state. It is worth pointing out that collecting and not remitting over $20,000 is a second degree felony, but if the amount collected and not remitted goes over $100,000 then it is a first degree felony offense with up to 30 years in jail.
The Executive Director was quoted saying:
It is an honor to serve the vast majority of Florida businesses who comply with State tax requirements. For those that don't, it is our job to enforce the law and ensure honest businesses are not placed at a competitive disadvantage by those who ignore the law or worse intentionally collect and steal taxpayer dollars
Collecting but not remitted Florida sales tax is a crime under Florida law and must be taken extremely seriously. It only takes $301 of collected but not remitted sales tax to become a 3rd degree felony with the potential for up to 5 years in jail. It is shocking to many business owners to know that the Florida Department of Revenue is dramatically more likely to arrest a business owner for tax fraud than the Internal Revenue Service ("IRS"). While both the IRS and the FL DOR will put tax liens on the business property (called a "Tax Warrant" in Florida), the Florida Department of Revenue will also charge and put the business owner in jail if the taxes and all associated penalties, interest, fines, and costs are not remitted.
If you or someone you know has collected but not remitted Florida sales tax, then please contact an attorney experienced in Florida sales and use tax criminal defense for a confidential conversation to discuss his or her options. There are mechanisms in place that allow individuals or their attorney to negotiate with the state to enter into a payment plan. While the monetary sanctions can be harsh, it is better than losing one’s freedom. Like any other crime, anything said by you is an admission and can be used against you at a criminal trial. Therefore, it is wise to have an attorney speak on your behalf.
At the Law Office of Moffa, Sutton, & Donnini, PA, our primary practice area is Florida taxes, with a very heavy emphasis in Florida sales and use tax. We have defended clients against criminal charges related to Florida sales and use taxes for more than 20 years. In fact, the only criminal cases we handle are related to Florida sales and use taxes. Our partners are both CPAs and Attorneys, so we understand both the accounting side of the situation as well as the legal side. We represent taxpayers and business owners from the entire state of Florida. Call our offices today for a FREE INITIAL CONSULTATION to confidentially discuss how we can help put this nightmare behind you.
About the Author: Mr. Sutton is a Florida licensed CPA and Attorney and a shareholder in the law firm Moffa, Sutton, & Donnini, PA. Mr. Sutton’s primary practice is Florida tax controversy, with an almost exclusive focus on Florida sales and use tax. Mr. Sutton worked for in the State and Local Tax department of one of the Big Five accounting firms 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 and at Boston University College of Law in 2014 teaching Sales and Use Tax. Mr. Sutton is a frequent speaker on Florida sales and use taxes for the FICPA, Lorman Education, NBI, AAA-CPA, and the Florida Society of Accountants. Mr. Sutton is also co-author of CCH's Sales and Use Tax Treatise. Mr. Sutton is the President of the Florida Association of Attorney – CPAs and the State and Local Tax Chairman for the American Academy of Attorney – CPAs. You can learn more about Mr. Sutton in his Bio HERE.
ADDITIONAL RESOURCES
CUTTHROAT KITCHEN WINNER, FL RESTAURANTTEUR ARRESTED FOR SALES TAX, published July 26, 2016, by Amanda Levine, Esq.
WEST PALM BEACH BAKERY OWNER ARRESTED – SALES TAX FRAUD, published February 26, 2016, by James Sutton, CPA, Esq.
BRANDON FL RESTAURANT OWNER ARRESTED FOR SALES TAX, published September 19, 2015, by James Sutton, CPA, Esq.
FL TAX – VOLUNTARY DISCLOSURE CAN BE THE PERFECT SOLUTION, published October 5, 2012, by Jerry Donnini, Esq.
FL TAX ALERT – CONVENIENCE STORE OWNERS TARGETED!, August 16, 2012, by James Sutton, CPA, Esq., and Jerry Donnini, Esq.
TAMPA JEWELRY STORE MANAGER ARRESTED FOR SALES TAX THEFT, August 30, 2012, by James Sutton, CPA, Esq.
MIAMI AUTO REPAIR SHOP OWNER ARRESTED FOR SALES TAX, August 25, 2012, by Jerry Donnini, Esq.
FT. MYERS BUINESS OWNER ARRESTED FOR FAILING TO REMIT ONLY $8,000 IN SALES TAX COLLECTED, August 11, 2012, by James Sutton, CPA, Esq.
FL DOR’S GREATEST WEAPON – REVOCATION OF DEALER’S SALES TAX CERTIFICATE, August 6, 2012, by Jerry Donnini, Esq.
CRIPPLING PENALTIES UNDER FLORIDA SALES AND USE TAX LAW, July 19, 2012, by James Sutton, CPA, Esq.
WHAT SERVICES ARE SUBJECT TO SALES TAX IN FLORIDA, May 1, 2012, by James Sutton, CPA, Esq.
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