Sales, Use and International Tax Activity Update - August 2009

Florida Says “Time to Confess Tax Liability”

Voluntary disclosure is the process of reporting previously unpaid or underpaid tax liabilities for any tax administered by the Florida Department of Revenue. It is the taxpayer's opportunity to voluntarily pay these taxes without being penalized. This program can assist with registration and payment, provide technical assistance in determining tax liabilities, and answer other tax questions you may have. In most cases, taxpayers are contacted within two weeks of receiving the necessary information. The Department of Revenue has a voluntary disclosure program for all the taxes that the agency administers.

Eligibility

Anyone who has any tax liability for a tax administered by the Florida Department of Revenue and who has not been previously contacted by the Department concerning the liability. Disclosures relating to delinquencies or deficiencies that are obvious and would routinely generate a billing if not otherwise self-disclosed are not eligible for the program.

Benefits

When the tax and interest liabilities have been paid, all penalties will be waived unless tax has been collected and not remitted. In those instances, a five percent penalty will be imposed per Rule 12-13.0075(3), Florida Administrative Code (F.A.C.), unless reasonable cause is presented. If the taxpayer is a mail-order company without nexus in Florida, a higher collection allowance may be negotiated.

Application

You must apply by written request and include the following information:

1. A statement that you have not been previously contacted by the Florida Department of Revenue about the disclosed tax liability.
2. The tax type and period being disclosed.
3. A statement as to what amount, if any, of tax was collected and not remitted.
4. The city, county, and state of the taxpayer (for sales and use tax).
5. Type of taxable activities or transactions (for sales and use tax).
6. Your sales and use tax certificate number, if applicable.
7. A completed Form DR-1, Application to Collect and/or Report Tax in Florida, if you need to register for sales and use tax.
8. Any other facts regarding the disclosure.

You can find additional information on the Florida Department of Revenue Website.

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