NEWS & INSIGHTS
Florida Criminal Sales Tax Investigations of Auto Dealers
Facing a Florida criminal sales tax investigation? Auto dealers are increasingly targeted by the Department of Revenue for felony tax evasion. This guide explains how audits turn into arrests, what records the DMV shares, and what every car dealer needs to know before it’s too late.
Florida Criminal Sales Tax Investigations of Auto Dealers: What to Know
Florida’s Department of Revenue (DOR) is continuing a years-long trend of aggressively investigating—and criminally prosecuting—auto dealers for alleged sales tax violations. These investigations often begin with standard audits, but quickly escalate into full-blown criminal cases. Auto dealers who are unprepared for the Department’s methods may face felony charges, license suspension, and even jail time.
How Do Criminal Sales Tax Investigations Start?
Most criminal investigations begin as routine audits. The DOR’s Criminal Investigations Division (CID) becomes involved when auditors suspect willful noncompliance, such as underreporting, fraudulent resale certificate use, or misuse of dealer tags.
What Statutes Are Involved?
The main statute is Fla. Stat. § 212.15(2), which criminalizes failing to remit collected sales tax. Depending on the amount, violations range from third- to first-degree felonies.
How the DMV Helps the DOR Build a Case
The DOR cross-references dealer-reported sales with title and registration records from the DMV to uncover discrepancies in reported transactions and taxable sales.
Resale Certificate Abuse and Dealer-Owned Inventory
Misuse of resale certificates or use of dealer inventory for personal purposes without remitting use tax are common triggers for criminal charges.
From Audit to Arrest
Once CID becomes involved, investigations may move quickly—from subpoenas to surveillance to arrest. Some dealers have been arrested without prior notice.
Penalties
- $300–$20,000: Third-degree felony (up to 5 years)
- $20,000–$100,000: Second-degree felony (up to 15 years)
- Over $100,000: First-degree felony (up to 30 years)
What to Do If You’re Under Investigation
Contact experienced counsel immediately. Do not speak to investigators. Preserve all documents. Avoid deleting records or making false statements.
Conclusion
Florida is serious about criminal sales tax enforcement in the auto dealer industry. Proactive compliance and early legal counsel are essential.
© 2025 Jeanette Moffa. All Rights Reserved.
Yes. If an auto dealer collects sales tax from customers and fails to remit it to the Florida Department of Revenue, they may be arrested and charged under Fla. Stat. § 212.15 for theft of state funds.
Criminal violations include willful failure to remit collected tax, falsifying invoices or tax returns, misuse of resale certificates, and knowingly underreporting taxable transactions.
Investigations usually begin with a standard sales tax audit. If auditors suspect fraud or intentional underreporting, the case is referred to the Criminal Investigations Division (CID) for further inquiry and possible prosecution.
Penalties depend on the amount of tax involved:
$300–$20,000 = Third-degree felony (up to 5 years)
$20,000–$100,000 = Second-degree felony (up to 15 years)
Over $100,000 = First-degree felony (up to 30 years)
The DOR uses data from the Department of Highway Safety and Motor Vehicles (DHSMV) to verify vehicle sales, titles, registrations, and compare them against tax returns. Discrepancies often trigger criminal tax investigations.
Yes. Using a resale certificate to purchase items for personal use or non-exempt business purposes can result in civil penalties or felony charges for tax evasion.
Dealers should avoid speaking to investigators without counsel, preserve all tax and sales documents, and immediately consult a Florida criminal tax defense attorney familiar with DOR investigations.
The timeline varies. Once CID is involved, investigations can move quickly—often involving subpoenas, surveillance, and interviews within weeks. In some cases, arrests are made before formal notice is given.
Yes. A criminal sales tax conviction can result in revocation of the dealer’s resale certificate, cancellation of their sales tax account, and termination of their Florida motor vehicle dealer license.
The best prevention is full compliance: remit all collected tax, document every transaction, avoid misuse of dealer plates or resale certificates, and correct underpayments before an audit or investigation begins.
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Jeanette Moffa, Esq.
(954) 800-4138
JeanetteMoffa@MoffaTaxLaw.com
Jeanette Moffa is a Partner in the Fort Lauderdale office of Moffa, Sutton, & Donnini. She focuses her practice in Florida state and local tax. Jeanette provides SALT planning and consulting as part of her practice, addressing issues such as nexus and taxability, including exemptions, inclusions, and exclusions of transactions from the tax base. In addition, she handles tax controversy, working with state and local agencies in resolution of assessment and refund cases. She also litigates state and local tax and administrative law issues.