On December 29, 2021, we posted an article on our website entitled, “Florida DOR’s 2022 Legislative Package BAD for Florida Business”, which included a link to the twenty proposed ideas prepared by the Florida Department of Revenue (“DOR”). These ideas are a wish list of how the DOR wants to further mistreat taxpayers. We are posting a series of articles involving a more in-depth review of these proposed ideas and how the ideas may impact you and your business. Senator Joe Gruters, from Senate District 23, is sponsoring this legislation in SB 1382, and Representative Cyndi Stevenson, from House District 17, is the sponsor of the companion bill in the House in HB 1041.
DOR’s second concept is called “Delivery of Administrative Subpoenas and Extension of Tolling Provisions” and DOR’s third concept “Notice Prior to Issuing an Assessment and Extension of Tolling Provisions”. See attached to this article a Link to these concepts. These two concepts are discussed below, and both seek to extend the tolling provisions currently in the statutes, in favor the DOR. The second concept also seeks to increase DOR’s power relative to administrative subpoenas it often issues to taxpayers and is discussed below as well. Neither concept is taxpayer friendly.
The DOR is seeking legislative authority to expand the force and effect of its administrative subpoenas issued in audits involving Communications Services Tax; Motor Fuel Tax; Severance Tax; Sales & Use Tax; and State Corporate Income Tax. The second proposed concept effectively would, in the instance where a taxpayer could not produce the requested records, result in an irrebuttable presumption that DOR is correct in its assessment and that the taxpayer is hiding something and owes what DOR decides. The proposed change would also give the Department separate authority to estimate taxes owed, however, without any parameters of what could or could not be included in such an estimate. Finally, in stepping up its administrative subpoena power against taxpayers, the DOR seeks to make it easier, and cheaper upon itself, to issue the subpoenas electronically to both in-state and out-of-state businesses. If a taxpayer formally objects in writing to any subpoena, the DOR wants to suspend, or expand the 1-year tolling period for completion of any audit provided in ss. 95.091(3) and 213.345, Fla. Stat. So, bottom line: DOR’s second legislative concept seeks to make it easier to issue administrative subpoenas; to make it harder on taxpayers that cannot produce certain records for some reason and to expand the time it has to assess a taxpayer when that taxpayer exercises its right to object to an administrative subpoena. Does this sound business friendly or DOR friendly?
Under the guise of making, it easier for taxpayers to request a field conference and possibly resolve audits more efficiently, DOR’s third legislative concept is really another attempt to impede taxpayer’s rights, while expanding the 1-year tolling period to complete an audit. Currently the Department’s auditors issue a Notice of Intent to Make Audit Changes (DR-1215), near the end of any audit. The current 1215 gives taxpayers 30 days to request an audit conference, or exit conference, to discuss the audit findings. This legislative concept would reduce the number of days for taxpayer to request an exit conference from 30 days down to 14 days and require that the conference take place within that 30-days. Should the taxpayer make a timely request for an exit conference, the DOR again wants to suspend the 1-year tolling period it has to issue an assessment. This concept would also override an appellate court case opinion that has served to limit the time the Department has to issue an assessment. Business friendly or DOR friendly?
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 Florida businesses against the Florida Department of Revenue since 1991 and have over 150 years of cumulative sales tax experience within our firm. Our partners are both CPAs/Accountants 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.
AUTHORITY
95.091 Limitations on Actions to Collect Taxes
213.345 Tolling of Periods During an Audit
ADDITIONAL RESOURCES
Florida DOR’s 2022 Legislative Package BAD for Florida Businesses, published December 29, 2021
FLORIDA SALES TAX AUDIT HELP, published August 24, 2020, by James Sutton, CPA, Esq.
GO TO JAIL FOR NOT PAYING FLORIDA SALES TAX?, published November 3, 2013, by James Sutton, CPA, Esq.