This month, we're focused on a risk most business owners underestimate: how quickly a routine sales tax shortfall can escalate into a criminal investigation in Florida. If FDOR contacts you, what you do first matters more than what you “meant” to do with the money. Below, we break down the real exposure and one move that prevents the most damage.
The Florida Department of Revenue (FDOR) arrests more than 1,000 people each year for sales tax-related crimes, and investigations are increasing.
What most business owners don’t know is in Florida, as little as $301 of collected but unremitted sales tax can carry penalties of up to five years in prison. Read that again. That’s less than 20 cents per day over five years, and it can still trigger real criminal exposure if the tax isn’t remitted on time.
What begins as a routine compliance issue can escalate quickly and quietly into a criminal investigation. And when it does, the consequences can be severe, not just for business owners, but also for the tax professionals advising them.
Most business owners don’t fall behind because they’re living large. They fall behind trying to keep the business afloat: making payroll, paying vendors, covering rent, and keeping the doors open. They tell themselves they’ll catch up “next month.” But FDOR doesn’t evaluate intent the way business owners do. Their focus is whether sales tax was collected and not remitted . . . period. And it’s critical to understand this: a sales tax investigator is not a collector and not a problem-solver. Their job is to determine whether a crime occurred, gather evidence and statements, and then refer the case for prosecution. They’re not there to help you “work it out” or guide you into a payment plan.
In fact, one of the most common ways these cases get worse is when a business owner talks, especially under the “helpful” or “good cop” approach. Casual statements like, knew I had to pay it,” can unintentionally check key boxes for the state’s case.
Our advice is simple: if FDOR contacts you, do not speak to the investigator before getting legal counsel. Get guidance from an attorney who understands sales tax and knows how these investigations unfold so you can protect yourself and reduce damage early.
At Moffa, Sutton, & Donnini, P.A., we’ve handled over 1,000 criminal sales tax investigations and know how to navigate these matters strategically from the first contact forward. If you’ve been contacted or you’re behind and worried about what’s next, contact us now for a free initial consultation.
