If you’ve been notified that your business is being audited by the Florida Department of Revenue (FDOR) for sales tax, your first instinct might be to call your accountant. But very quickly, you might find yourself asking a more urgent question:
Do I need a lawyer for this?

The answer is almost always yes—especially if you’re being audited for sales tax in Florida. Florida has some of the most aggressive sales tax enforcement in the country, and the legal and financial consequences of an audit can be serious. This article breaks down why you should consider hiring a lawyer, what kind of attorney you need, and how having legal counsel can change the outcome of your audit.

What Is a Florida Sales Tax Audit?

A sales tax audit is a review of your business’s records by the Florida Department of Revenue to determine whether you properly collected and remitted sales tax. This process is triggered when the Department believes there may be errors, underpayments, or compliance issues with your filings.

The audit usually begins with a Form DR-840 (Notice of Intent to Audit Books and Records) and may be followed by:

• A DR-846 (Information Request)

• A DR-1215 (Notice of Intent to Make Audit Changes)

• A NOPA (Notice of Proposed Assessment)

• And potentially a DR-870 (Final Notice of Assessment)

Can’t My CPA Handle the Audit?

CPAs play an important role—but they’re not lawyers. Many business owners believe their accountant can represent them in an audit, and in some cases, that’s true. However, Florida sales tax audits often raise legal issues, not just accounting questions.

Here’s where the line is drawn:

What CPAs Can Do:

• Prepare records

• Explain accounting methods

• Assist with tax return filings

• Communicate with the Department on factual issues

What Attorneys Can Do:

• Identify legal arguments, such as procedural violations under the APA

• Understand evolving case law as applicable to your case

• Represent you in administrative hearings or litigation

• Negotiate settlements or offers in compromise in litigation

• Protect your rights under attorney-client privilege

So, while your CPA is a valuable ally, they’re not a substitute for an experienced Florida sales tax audit lawyer, especially once the audit escalates.

When Do You Really Need a Lawyer?

You should seriously consider hiring a lawyer as soon as you receive a sales tax audit notice—but it becomes especially critical in these situations:

You Received a DR-840 (Notice of Audit)

This is your early warning. A lawyer can help guide you through the audit strategy before you hand over records.

You’re in a High-Risk Industry

Certain industries are targeted more aggressively by FDOR, including:

• Restaurants

• Construction contractors

• Auto dealers

• Medical device and healthcare suppliers

• E-commerce businesses
  These industries often deal with complex taxability issues and cash sales—prime audit targets.

You Collected Tax but Didn’t Remit It

This is considered theft of state funds under Florida law, and in some cases, it can be prosecuted criminally. A lawyer can help minimize legal exposure.

You Don’t Have Good Records

If your records are incomplete or inconsistent, the Department may use estimates or indirect audit methods—which often lead to inflated assessments. A lawyer can challenge these methods.

You’ve Been Audited Before

If the Department believes you’re a repeat offender, they may impose harsher penalties. A lawyer can argue for reduced liability based on procedural defenses or equity.

What Can a Florida Tax Lawyer Actually Do During an Audit?

An experienced Florida tax attorney does far more than review numbers. Here’s what they bring to the table:

Strategic Record Review

Before anything is sent to the Department, your lawyer will review your records to identify red flags and prepare responses that minimize exposure.

Communicate with the Auditor

Auditors are trained to look for inconsistencies. A lawyer ensures that communications are controlled, accurate, and strategic—without accidentally volunteering damaging information.

Legal Argumentation

Many audits hinge on whether something is taxable under Florida law. A lawyer can argue:

• That certain services or items are non-taxable

• That sales qualify for exemptions

• That nexus or jurisdiction is lacking

• That penalties are unwarranted

File a Protest or Petition

If the audit results in a Notice of Proposed Assessment (NOPA), your lawyer can file a formal protest, which preserves your rights to appeal. If necessary, they can escalate the case to an administrative hearing (DOAH) or circuit court.

Negotiate Penalties or Settlements

Attorneys can negotiate reduced penalties, payment plans, or settlements—often achieving results that taxpayers cannot obtain on their own.

What Happens If I Don’t Hire a Lawyer?

If you don’t hire a lawyer, you’re at risk of:

• Paying more tax than necessary

• Missing deadlines for appeal

• Having estimates imposed based on bad audit methods

• Being assessed penalties and interest that could have been avoided

• Facing criminal investigation in extreme cases

FDOR audits can result in five- or six-figure assessments, even for small businesses. Once a Final Assessment is issued, the state can move quickly to freeze your bank accounts, file liens, or seize assets. A lawyer helps you avoid that worst-case scenario.

Is It Worth the Cost?

In most cases, yes. Think of it this way:

• If a lawyer helps you avoid $50,000 in tax and penalties, their fee more than pays for itself.

• If they prevent a criminal referral, they may have saved your business—or your freedom.

• If they help you settle or structure payments, you preserve cash flow and keep operating.

Many Florida tax lawyers offer flat-fee audits or tiered pricing depending on the stage of the audit. In serious cases, the cost of not having one is far higher than hiring one.

Final Thoughts

A Florida sales tax audit is not like a routine IRS correspondence check. The Florida Department of Revenue is aggressive, and its auditors are trained to pursue underpayments, missing filings, and tax errors with precision.

While accountants are essential, only a Florida tax attorney can provide the legal protection, strategic advocacy, and procedural representation you need to navigate an audit successfully.

© 2025 Jeanette Moffa. All Rights Reserved.