If your business collects sales taxes from your customers and does not remit it to the Florida Department of Revenue, the State will bring criminal charges against you personally under Florida Statute 206.56 for Theft of State Funds. Theft of State Funds is a third degree felony carrying a maximum prison sentence of up to [...]

The Notice of Deficiency If you are audited and cannot come to an agreement with the examining agent, the IRS will issue what is known as a Notice of Deficiency (sometimes also called the 90 Day Letter). The Notice of Deficiency contains a calculation of the additional tax, interest and penalties the IRS believes you [...]

If you can’t pay your tax debt in full, you will have to completely disclose your financial circumstances to the IRS. There is no way to avoid this disclosure requirement other than making full payment. A taxpayer’s financial information is provided on one or more of the following prescribed IRS forms: IRS Form Number Description [...]

One of the worse things cash-strapped business owners can do is collect sales tax from their customers and then use that money to pay other business expenses. The state of Florida calls this Theft of State Funds and it’s a felony. The reason for this is obvious: Business owners who apply for a Florida sales [...]

After your Florida comprehensive tax audit has begun there are several things you should do and several you should not do in order to make the audit go as smoothly as possible and minimize your chances that the Florida tax examiner will make an assessment against you: Let’s start with the don’ts: Don’t make abstract [...]

With good reason Floridians dread getting a notice from the Department of Revenue (DOR) saying that their business has been selected for tax audit. Usually this means the State will attempt to determine whether or not you under-reported your taxable sales, over-reported your exempt sales or underpaid your sales tax. In addition, while they are poking through your records, they [...]

Once an assessment is made against you, your case gets sent to the IRS Collection Division. There are two types of collection agents taxpayers encounter in the IRS collection process: Automated Collection Distributors; and Local Revenue Agents. The Automated Collection System The Automated Collection System was developed in the early 1980′s to allow the IRS [...]

The Best Way of Doing Business The Best Way to Prepare Schedule “C” of Form 1040 The Best Way to Organizing Your Tax Records The Best Way to Keep Track of Your Business Mileage The Best Way to Survive a Tax Audit The Best Way to Avoid a Tax Lien

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Self-employed taxpayers and small business owners who have a history of disorganization and poor bookkeeping often feel like it would be impossible to get caught up. This is a defeatist attitude that is not grounded in reality. Getting Caught Up Only Appears Overwhelming When you don’t keep your books and records on a regular basis [...]