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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 start the 60-day notice period, identify the tax and timeframe, and put the burden on you to prove your sales tax was handled correctly. The key difference for a restaurant is breadth: a DR-840 examines your whole operation, while a DR-846 is narrower, though it can expand into a full audit if the auditor finds problems.
When the envelope arrives, the form number tells you a great deal about what is coming. A full audit and a limited scope audit are very different experiences, and confusing one for the other leads restaurants to over-prepare for the narrow case or under-prepare for the broad one.
Here is how the two FDOR audit notices compare, what each one means for your restaurant, and why a narrow notice is not always the smaller problem it appears to be.
DR-840: The Full Audit
Form DR-840 is the Notice of Intent to Audit Books and Records. It opens the traditional, comprehensive audit in which the Department reviews your entire operation for the period. Our full guide to the DR-840 notice and what happens next covers the process in detail.
A full audit is the most labor-intensive. The auditor requests document after document and examines sales, purchases, exemptions, and use tax. Florida law generally requires the Department to complete the audit and issue an assessment no later than 305 days after sending the DR-840, so a full audit is also the longest to resolve.
DR-846: The Limited Scope Audit
Form DR-846 is the Notice of Intent to Conduct a Limited Scope Audit. It signals a much narrower approach, where the Department wants to examine a specific issue or transaction rather than your whole business.
A limited scope audit feels less threatening, and often is. But the narrow focus also means the Department already has a particular concern in mind, and a limited audit can widen into a full one if the auditor finds something that warrants a closer look.
In practice, a DR-846 often follows a specific trigger: a mismatch the Department spotted, an industry initiative, or a single category it wants to test. Treating it as a quick formality is how a manageable review turns into a broader problem.
DR-840 vs DR-846 at a Glance
| Attribute | DR-840 (Full Audit) | DR-846 (Limited Scope Audit) |
| Official name | Notice of Intent to Audit Books and Records | Notice of Intent to Conduct a Limited Scope Audit |
| Scope | Your entire operation for the period | A specific issue or transaction |
| Records requested | Broad and ongoing, document after document | Targeted to the issue under review |
| Intensity | High, the most labor-intensive audit | Lower, but can expand if problems surface |
| Timeline | 60-day notice; assessment generally within 305 days | 60-day notice; narrower review |
| Measurement (how exposure is set) | Derived across all taxable categories, often via markup or sampling projected over the period | Limited to the specific issue, unless the audit is expanded into a full review |
What Both Notices Have in Common
Despite the difference in scope, the two notices share the features that matter most:
- Both start the 60-day notice period and identify the tax type and timeframe.
- Both put the burden on you to prove your sales tax was collected and remitted correctly.
- Both can lead to a Notice of Proposed Assessment if the Department finds a shortfall.
- For either, you must file a Power of Attorney (Form DR-835) for the auditor to deal with your representative.
Why a Limited Scope Notice Is Not Always the Smaller Problem
It is tempting to relax when the notice is a DR-846. Resist that instinct. A limited scope audit means the Department arrived with a specific suspicion, and the issue it chose is often one that produces a clean, defensible adjustment.
Targeted issues frequently include the markup method applied to your sales mix, or a single category such as tips and gratuities. If the auditor finds a problem there, the scope can broaden quickly, which is why even a narrow notice deserves a careful response.
Which Notice Did You Get, and What Now
Whether you received a DR-840 or a DR-846, the first move is the same: read the notice carefully, understand exactly what is being examined, and control what you provide. The difference is in how broadly you prepare, not in whether you take it seriously.
A Business CPA Tax Resolution Case Analysis reviews your specific notice, identifies what the Department is really after, and maps a response scaled to the audit you actually received. If the audit produces a number you disagree with, the next steps are covered in our guides to how a CPA reviews FDOR’s calculation and settling a Florida sales tax assessment
Frequently Asked Questions
Next step
Whether you received a DR-840 or a DR-846, scale your response to the audit you actually got. A Business CPA Tax Resolution Case Analysis reviews your notice, identifies what the Department is really after, and maps the response.
