What to Expect from a Florida Tax Audit: A Business Owner’s Guide

If you’re a Florida business owner, the thought of a tax audit from the Florida Department of Revenue (DOR) might make you uneasy. But the reality is, an audit isn’t always a bad thing if you are prepared which will make the process much smoother. Here’s what you need to know if you receive that official audit notice.

Why Does the Florida Department of Revenue Audit Businesses?

First, let’s clear up a common misconception: not all audits are triggered by suspicion of wrongdoing. In fact, most are routine. 

How Are Businesses Selected for Audit?

Selection for a Florida tax audit can happen in several ways:

·         Information sharing with the IRS or other states

·         Random computer selection

·         Analysis of your Florida tax returns

·         Industry publications and directories

So, if you’re selected, it doesn’t necessarily mean you’ve done anything wrong.

How to Prepare for a Florida Tax Audit

·         Keep your records organized and up to date.

·         Respond promptly to DOR requests.

·        Communicate openly with the auditor and ask questions.

·        Consult a tax professional, preferably an experienced tax attorney, if you’re unsure about anything.

The Audit Process: Step by Step

1. Notification

You’ll receive a “Notice of Intent to Audit Books and Records” (Form DR-840). This document tells you which taxes and periods are under review. You’ll also get a list of records you’ll need to provide.

2. Desk vs. Field Audit

·         Desk Audit: Conducted at the DOR office; you mail or upload your records.

·         Field Audit: Conducted at your business location; the auditor comes to you.

3. What Records Will You Need?

Be prepared to provide:

·         Federal and Florida tax returns

·         General ledgers and journals

·         Depreciation schedules

·         Cash receipt and disbursement journals

·         Purchase and sales journals

·         Sales tax exemption or resale certificates

Tip: Florida law requires you to keep records for at least three years. If you can’t provide records, the DOR will estimate your tax liability based on whatever information is available.

4. The Audit Itself

The auditor may interview you or your representative (if you want someone else to handle it, file a Power of Attorney form). They’ll ask about your business structure, accounting systems, and day-to-day operations.

Pro Tip: Assign a knowledgeable employee to assist the auditor and help gather records. Well-organized documentation can make the process much easier and faster.

5. Your Rights During the Audit

You have the right to:

·         Be informed about the audit’s findings and any proposed changes

·         Ask questions and get clear explanations

·         Have your representative, preferably an experienced tax attorney, present .

After the Audit: What Happens Next?

Once the audit is complete, you’ll receive a summary of the findings. If you owe additional taxes, you’ll get a Notice of Proposed Assessment. You’ll have 30 days to review and respond before any payment is due.

But remember: not all audits result in extra taxes. Sometimes, the auditor will find that everything is in order or even that you’re due a refund.

What to Do If You Disagree with the Audit Findings

If you disagree with the results of a tax audit, you have the right to challenge the findings. Here’s how:

1. Request a Reconsideration: Provide additional evidence or clarification to the FDOR to address the discrepancies.

2. File an Appeal: If the reconsideration doesn’t resolve the issue, you can file an appeal with the Florida Division of Administrative Hearings.

3. Seek Legal Counsel: Engage a tax attorney to represent you in disputes and ensure your rights are protected.

Conclusion

A Florida tax audit can feel overwhelming, but with proper preparation and a proactive approach, you can navigate the process with confidence. Understanding why audits occur, knowing what to expect, and taking the necessary steps to prepare, including hiring an experienced Tax Attorney, is critical to ensuring a favorable outcome.

By cooperating with auditors and seeking professional guidance when needed, you can emerge from the audit process with minimal disruption to your personal or business finances.

Are You Being Audited by the
Florida Department of Revenue (FDOR)?

Contact the Tax Lawyers at 

Marini & Associates, P.A.

 

for a FREE Tax Consultation

at www.TaxAid.us or www.TaxLaw.ms

or Toll Free at 888-8TaxAid (888 882-9243)

 

Tax Court To Hear 'Seriously Delinquent' Debt Case

According to Law360, the U.S. Tax Court decided on May 19, 2025, in Garcia v. Commissioner, docket number 27496-22P, for the first time that its review of a challenge to an IRS certification of tax debt as "seriously delinquent" is not limited to the agency's administrative record, saying a trial is needed in a man's case to determine the facts.

In the ruling, the full Tax Court rejected the Internal Revenue Service's request to find through summary judgment that the agency correctly certified the $130,000 tax debt of Alberto Garcia Jr. as seriously delinquent under Internal Revenue Code Section 7345(a), a designation that can cause a taxpayer's passport to be revoked.

Garcia argued that his tax liabilities, dating to 2005 through 2008, were unenforceable because they were so old and therefore couldn't constitute a seriously delinquent debt under the law. 

The IRS countered that the agency qualified for an exception to the 10-year time limit on collections because Garcia's liabilities had been reduced to judgment by a federal court within the proper time frame. 

But Garcia Claimed That Judgment Was Void 

Because He Was Never Served With The Lawsuit.

The court said the case tasked it with deciding an issue of first impression. As Judge Emin Toro framed it in writing the opinion for the court: "What is the scope of our review or, put differently, on what evidence do we determine whether the commissioner's certification that a seriously delinquent tax debt exists is correct?"

The court concluded that the text of the law and the court's precedents require it to review the case from the beginning, or "de novo," meaning that the review must include evidence introduced at trial.

"Because Mr. Garcia raises a genuine issue of material fact as to whether he was served in the district court suit, we cannot conclude at this stage of the proceedings that the liabilities at issue are legally enforceable," Judge Toro said.

If You Have Serious Delinquent IRS Debt, You Should Consult with Experienced Tax Attorneys, As There Are Several Ways Taxpayers Can Avoid Having the IRS Request That the State Department Revoke Your Passport. 

  Want To Keep Your US Passport?
 

 

Contact the Tax Lawyers at 

Marini & Associates, P.A.

for a FREE Tax Consultation Contact us at:

www.TaxAid.com or www.OVDPLaw.com 

or Toll Free at 888-8TaxAid (888)882-9243.

 

It is What You Do Now to Cover up or Not Pay Your Taxes That Will Result in Criminal Tax Exposure

This Is an Example of How Not to
Handle an IRS Collection Matter!

According to the DoJ, a Florida man was sentenced on May 14, 2025 to 24 months in prison for evading nearly $2.4 million in taxes on income he earned from his business.

The following is according to court documents and statements made in court: Roger Whitman manufactured and sold Rife machines, devices that use energy waves to purportedly treat a wide range of medical conditions. Between 2002 and 2018, Whitman generated millions of dollars in gross receipts from the sale of such equipment. Whitman also has a long history of non-compliance with his tax obligations, having not filed an individual income tax return since 1997 and not made any tax payments since 2000.

In 2012, the IRS assessed nearly $800,0000 in taxes against Whitman for 2002 through 2009 and then began trying to collect these taxes from him. To thwart the IRS’s collection efforts, Whitman formed a trust with his girlfriend serving as the trustee. Whitman then directed his income from the business into the trust’s bank accounts and used the funds from these accounts to pay personal expenses. In approximately July 2019, to further thwart IRS efforts, Whitman formed a new entity to operate his business.

Through his actions, Whitman caused a tax loss to the IRS of more than $2.4 million. 

In addition to his prison sentence, U.S. District Judge John Antoon II for the Middle District of Florida ordered Whitman to serve one year of supervised release and pay $2,314,220.15 in restitution to the IRS.

Have an IRS Tax Problem?

 Contact the Tax Lawyers at

Marini & Associates, P.A. 

for a FREE Tax HELP Contact us at:
www.TaxAid.com or www.OVDPLaw.com
or Toll Free at 888 8TAXAID (888-882-9243)

 

Florida Financial Advisor Sentenced To 8 Years for Promoting Illegal Tax Shelter

According to the DoJ, a Florida financial advisor was sentenced on May 14, 2025 to eight years (8) in prison for orchestrating a nearly decade-long scheme to promote an illegal tax shelter and to steal client funds.

The following is according to court documents and statements made in court: Stephen T. Mellinger III, of Delray Beach, was a financial advisor, insurance salesman, and securities broker operating in Florida, Michigan, Mississippi, and elsewhere. 

Beginning In Late 2013, Mellinger Conspired With
Others To Promote An Illegal Tax Shelter Whereby
Clients Would Claim False Tax Deductions For So-Called
“Royalty Payments” To Fraudulently Reduce Their Taxes.

In reality, the “royalty payments” were merely a circular flow of money designed to give the appearance of genuine business expenses. Typically, a client would send money to bank accounts controlled by Mellinger and his co-conspirators, who then sent the money, minus a fee, to a different bank account that the client controlled. 

Tax Shelter Participants Retained Control Of The Money They Transferred, While Falsely Deducting The Transfers As Business Expenses On Their Tax Returns.

In total, Mellinger and his co-conspirators helped clients prepare tax returns that claimed over $106 million in false tax deductions, which caused a tax loss to the IRS of approximately $37 million. Mellinger and a co-conspirator, who was a relative, collectively earned approximately $3 million in fees from the scheme.

In January 2016, Mellinger learned that several of his clients were under investigation and that the United States had started seizing their funds. Mellinger and the relative subsequently stole more than $2.1 million from some of the clients, a portion of which Mellinger used to buy a home in Delray Beach.

In addition to the prison sentence, U.S. District Judge Keith Starrett for the Southern District of Mississippi ordered Mellinger to serve three years of supervised release and to pay approximately $37 million in restitution to the United States.

Have an IRS Tax Problem?

 Contact the Tax Lawyers at

Marini & Associates, P.A. 

for a FREE Tax HELP Contact us at:
www.TaxAid.com or www.OVDPLaw.com
or Toll Free at 888 8TAXAID (888-882-9243)

 

Jury Finds IRS Needs More Than a Finding That the Wife Was a Responsible Party to Hold Her Libel for Unpaid Payroll Taxes

According to Law360, he wife of a man found liable for construction company employment taxes is off the hook for $2 million in liabilities, a New York federal jury found, saying she was not responsible for collecting the taxes and paying them over to the federal government in Martha Gonzalez v. U.S., case number 2:22-cv-03370, in the U.S. District Court for the Eastern District of New York.

The jury unanimously found Friday that Martha Gonzalez, who had sued the government in 2022 to release her from liens related to the debt, was not responsible for collecting five quarters' worth of employment taxes in 2012 and 2013 for Camabo Industries Inc., in which she formerly owned shares.

The vote followed a five-day trial in which Gonzalez made the case that, as stated in a pretrial order, she "did not manage the company's day-to-day functions, had no control over the tax, financial, or business operations of Camabo" and "did not prepare, review, sign or file any employment tax returns on Camabo's behalf."

Gonzalez claimed the Internal Revenue Service had threatened to seize her property for years over the liabilities "in a bid to hold her personally liable in what can only be described as a strategy of trying to establish responsibility by association."

In October, a New York federal judge found that her husband, Boris Gonzalez, was liable for the taxes. The government sought to hold Martha Gonzalez liable as well, filing a counterclaim against her complaint seeking a money judgment for the trust fund recovery penalties the IRS had assessed against her. As of December, that balance was roughly $2 million, according to a pretrial order.

The government argued in a response to her complaint that: 

• she and her husband both had signature authority on at least one of Camabo's bank accounts during the tax periods at issue. 
• They both made purchases against the account using business debit cards in their names. 
• Both of them lived at the address, which was the same address of the company.
• Martha Gonzalez had loaned the company money and was a co-debtor with her husband regarding certain company liabilities, the government said. and
• Martha Gonzalez was listed as the chairman of Camabo until at least 2017, with her husband claiming to be its president, the government said.

In a pretrial order, the government said Martha Gonzalez "purportedly" sold the business to her husband in 2011.

It argued she should be considered a person responsible for collecting the taxes from Camabo's workers under Internal Revenue Code Section 6672 and that she willfully failed to comply with the requirements to turn over the money to the IRS.

But Martha Gonzalez said in the pretrial order that she had no control over the company's finances at the time that would make her responsible for the tax payments.

 Thinking of Borrowing From Your Company's
Payroll Tax Withholdings?

You Better Thank Again, if You Like Your Freedom!

 Have Payroll Tax Problems?

 

 Contact the Tax Lawyers at
Marini & Associates, P.A. 

for a FREE Tax HELP Contact Us at:
www.TaxAid.com or www.OVDPLaw.com
or Toll Free at 888-8TaxAid (888-882-9243)