You know you have been skirting the sales tax laws forever. You’re at a point where this plan is riskier and dumber than ever. What can you do to get back in compliance before fate sets in? Like the IRS, the Florida DOR has a program to let back into their good graces.
Florida’s Voluntary Disclosure Program provides a proactive way for taxpayers to come forward and rectify their tax obligations with reduced penalties and potential relief from interest and criminal prosecution. The primary goal is to foster a cooperative environment where taxpayers can rectify their mistakes without fearing severe repercussions.
Who Can Benefit from the Program?
The program is available to businesses and individuals, whether registered with the DOR or not. One key eligibility requirement is that the taxpayer must not have been previously contacted by the Department of Revenue regarding the tax liability in question. This ensures that the program is genuinely voluntary and not a response to an audit or investigation.
How to Apply:
- Submit a Disclosure Request: You can submit this online through the Florida Department of Revenue’s website or by mailing a written request. The application should include comprehensive details about the tax liability, such as the type of tax, the period of delinquency, and the amount owed for the last three years from the date of the disclosure request.
- Provide Complete Information: Full disclosure is critical. The Department of Revenue requires accurate and complete information to assess your case and determine the terms of the disclosure.
- Await Response: After you submit your request, the Department will review it and provide terms that may include reduced penalties and interest. Compliance with these terms is essential to benefiting from the program.
Benefits of Participation:
- Limited Lookback: DOR only looks at taxes for the 3 prior years.
- Penalty Reduction: One of the program’s most attractive aspects is the potential reduction or waiver of penalties associated with unpaid taxes.
- Interest Reduction: In certain cases, the interest on unpaid taxes can also be reduced.
- Avoid Criminal Prosecution: Taxpayers who fully comply with the terms of the voluntary disclosure agreement are generally not subject to criminal prosecution for the disclosed tax liabilities.
Conclusion:
Want to sleep better at night? This is the first step. For More Information