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The Florida Department of Revenue opens a sales tax audit with one of two notices. Form DR-840, the Notice of Intent to Audit Books and Records, starts a traditional full audit of everything for the period. Form DR-846, the Notice of Intent to Conduct a Limited Scope Audit, targets a single issue or transaction. Both […]
Florida Restaurant Sales Tax Audit: DR-840 vs DR-846 Process Comparison Read More »
Once the Florida Department of Revenue issues a sales tax assessment, a restaurant generally has a few ways to resolve it: pay in full, set up a stipulated time payment agreement, or seek a compromise of the tax, interest, or penalties under section 213.21, Florida Statutes. A payment plan spreads the full balance over time
Settling a Florida Restaurant Sales Tax Assessment: Payment Plans and Compromise Options Read More »
When the Florida Department of Revenue uses the markup method, it estimates your restaurant’s sales from your purchases and treats any shortfall as unreported and taxable. That estimate rests on assumptions that are frequently wrong: the markup percentage, the sample period, and the reductions left out. A CPA reviews the audit by reconciling the auditor’s
Florida Sales Tax Audit Defense: How a CPA Reviews FDOR’s Markup Calculation Read More »
Florida’s Voluntary Disclosure Program lets a restaurant that owes back sales tax come forward before the Department makes contact, in exchange for waived penalties and a look-back generally limited to three years. Under section 213.21, Florida Statutes, once you pay the tax and interest, penalties are waived, except where tax was collected but not remitted,
Florida Voluntary Disclosure Program: A Restaurant Owner’s Pre-Audit Option Read More »
In Florida, grocery food products are generally exempt from sales tax, but food prepared, served, or sold by a restaurant is taxable. The line is set by how the item is sold, not just what it is. Under Florida Administrative Code Rule 12A-1.0115, a restaurant that also runs a separate grocery department can sell exempt
Florida Sales Tax on Prepared Food vs Groceries: What Restaurants Must Track Read More »
In a Florida restaurant sales tax audit, the Department rarely reviews every transaction. Instead it examines a sample, calculates an error rate, and projects that rate across your entire audit period, usually three years. Florida law under section 212.12 allows this when records are adequate but too voluminous to review in full. The danger for
How Florida’s Sales Tax Audit Sampling Works for Restaurants? Read More »
Florida use tax is the companion to sales tax. When a restaurant buys equipment, supplies, or decor from an out-of-state or online vendor that does not charge Florida tax, the business owes 6 percent use tax, plus any county surtax, directly to the state. Under section 212.06, Florida Statutes, the duty to pay shifts to
Florida Use Tax on Restaurant Equipment: The Hidden Audit Trigger Read More »
In Florida, a voluntary tip a customer chooses to leave is not subject to sales tax, but a mandatory or automatic gratuity the restaurant adds to the bill generally is, because it becomes part of the taxable sales price. Under Florida Administrative Code Rule 12A-1.0115(7)(a), an added gratuity is excluded from tax only when it
Restaurant Tip and Gratuity Reporting: Florida Sales Tax Pitfalls Read More »
In a Florida restaurant sales tax audit, the markup method estimates your sales from your purchases. The auditor takes your food and beverage cost, multiplies it by a standard industry markup, and treats the result as your expected taxable sales. If your reported sales are lower, the gap is presumed unreported and taxed, with penalties
Florida Sales Tax Audit for Restaurants: The Markup Method Could Triple Your Tax Bill Read More »
A Florida DR-840 (Notice of Intent to Audit Books and Records) tells you the Florida Department of Revenue has selected your restaurant for a sales and use tax audit. You generally have 60 days before the auditor begins. During that window the auditor requests your DR-15 returns, federal returns, POS data, bank statements, and vendor
Got a Florida DR-840 Audit Notice for Your Restaurant? Here’s What Happens Next Read More »