Form Gt-800042 - What To Expect From A Florida Tax Audit printable pdf download

GT-800042

R. 12/17

What to Expect from a

Florida Tax Audit

A tax audit should be an educational experience to provide an understanding of your responsibilities

and rights under Florida tax laws. It should not be a frustrating, time-consuming experience. An audit

helps businesses identify and correct bookkeeping problems that could cause additional tax liabilities.

We want to help you avoid penalties and interest that can result when you do not file and pay your

taxes correctly or on time.

Why Are Taxpayers Audited?

We audit taxpayers to:

•

Enforce Florida tax laws uniformly.

•

Deter tax evasion.

•

Promote voluntary compliance.

•

Educate taxpayers.

While we accept most tax returns as filed, we audit some returns to verify accuracy and evaluate

compliance. Audits do not always result in the taxpayer owing additional tax, penalty, or interest. The

auditor may adjust a credit carryover or correct distribution without assessing additional tax. The

auditor may even determine that a refund is due.

How Was I Selected?

The strategies for selecting a business or individual to audit vary from tax to tax. Some examples of

sources used to identify a potential audit lead are:

•

Internal Revenue Service information.

•

Information sharing programs with other states or other state agencies.

•

Computer-based random selection.

•

Analysis of Florida tax return information.

•

Business publications, periodicals, journals, and directories.

What Happens During the Audit?

We conduct two types of audits: those done in our offices (desk audits), and those done at your place of

business (field audits). Audits can be completed using paper or electronic records. Generally, we will

audit a major tax, such as sales and use tax or corporate income tax, along with related taxes, such as

local option taxes.

The auditor begins by mailing you a Notification of Intent to Audit Books and Records. This notice

identifies the audit period and taxes to be examined. The auditor will also inform you of the records you

will need to provide. You may receive a questionnaire to assess the potential for an electronic audit.

The types of records needed may include, but are not limited to:

•

federal income tax returns

cash receipt and disbursement journals

•

Florida tax returns

purchase and sales journals

•

depreciation schedules

sales tax exemption or resale certificates

•

general ledgers and

documentation to verify amounts entered on

journals

tax returns

•

property records

Florida Department of Revenue, What to Expect from a Florida Tax Audit, Page 1

Form Gt-800042 - What To Expect From A Florida Tax Audit

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