Over the past three years, the Florida Department of Revenue has targeted a growing number of businesses for sales-tax audits.  While the state has always taken a hard line in identifying tax fraud, it has recently stepped up its enforcement efforts and narrowed its focus on specific businesses and industries, including, but not limited to, convenience stores, used car dealers and VoIP service providers. Not only do targeted businesses face stiff penalties for under-reporting sales tax, but owners and managers also face criminal prosecution and the possibility of imprisonment for five to 30 years.

On the surface, sales tax appears to be a fairly simple and straightforward concept.  However, laws governing state and local taxes are often changing, and the interpretation of them can be rife with hidden dangers. Some of the most problematic gray areas of sales tax compliance involve commercial real estate rentals, manufacturing, and Internet and cloud computing.

Commercial Real Estate Rentals

Florida is the only state that levies a sales tax on commercial real estate rentals.  In fact, this tax is the number one Read More