Florida Department of Revenue, Florida Private Letter Ruling, Florida Technical Assistance Advisement, Economic Nexus

Why Florida Tax Planning Matters More Than Ever

Florida’s economy is thriving—and so is its tax enforcement. As the Florida Department of Revenue increases its audit activity, many businesses are finding themselves caught off guard by assessments for back taxes, penalties, and interest. Proper tax planning helps your business:

• Avoid audit triggers by addressing reporting errors, filing inconsistencies, or missing documentation before the state finds them.
• Reduce tax exposure by legally optimizing deductions, exclusions, and apportionment methods.
• Ensure multistate compliance, especially for companies operating online, across borders, or through remote workforces.
• Safeguard major transactions, such as mergers, acquisitions, or restructurings, from unforeseen Florida tax liabilities.

Florida tax planning is not a one-time task—it’s an ongoing, dynamic process. As laws evolve, businesses must continually adapt their tax strategies to remain compliant and minimize risk.

Florida Tax Planning to Prevent Costly Audits

One of the most valuable outcomes of tax planning is avoiding state audits in the first place. Florida tax audits can be extremely costly—not just financially, but in terms of time, business disruption, and long-term liability. Many companies come to us after receiving a Notice of Intent to Audit, but the best outcomes happen when we’re involved earlier.

Our Florida tax planning services are built with Florida tax audit defense in mind. We assess the same risk areas that FDOR auditors do and implement safeguards to proactively address them. This includes:

• Reviewing sales tax exemption certificate procedures.
• Verifying nexus thresholds across state lines.
• Ensuring apportionment factors and filing methodologies are supportable.
• Reconciling reported revenue with internal records and third-party data.

By aligning your internal processes with Florida’s tax enforcement posture, we reduce the likelihood that your business will ever appear on the FDOR’s audit radar.

Advanced Multistate Tax Planning Strategies

Modern business is rarely confined to a single state—and the Florida Department of Revenue is quick to assert tax jurisdiction over out-of-state businesses with economic presence in the state. Our multistate tax planning services help businesses evaluate their exposure and reduce risk across borders.

We advise on key issues such as:

• Economic Nexus – Determining when a business’s revenue or activity in Florida creates a sales tax or corporate income tax obligation.
• Apportionment Planning – Developing methods to fairly allocate income between Florida and other states, minimizing double taxation.
• Remote Workforce & Contractor Analysis – Understanding how employees or contractors working in Florida affect your tax obligations.
• Marketplace Facilitator Rules – Ensuring compliance with sales tax collection responsibilities when selling through third-party platforms.

For businesses based outside Florida, we help evaluate whether the FDOR has proper jurisdiction and what filings may be required to stay compliant. For Florida-based companies with out-of-state activity, we help manage outbound risk to other states while ensuring Florida obligations are correctly handled.

Navigating Florida Sales Tax Complexities

Florida sales tax is a major source of revenue for the state—and a common pitfall for businesses. As Florida has no personal income tax, the Florida Department of Revenue puts an especially strong emphasis on sales tax enforcement. Misunderstanding what is taxable, relying on incorrect exemption certificates, or failing to properly track taxable versus non-taxable transactions can all trigger large assessments during an audit.

We help businesses plan for sales tax compliance in the following ways:

• Taxability Reviews – Determining which products and services are subject to Florida sales tax, especially for mixed or bundled transactions.
• Exemption Certificate Management – Creating policies and procedures to collect, verify, and store resale or exemption certificates in an audit-ready format.
• Use Tax Strategies – Identifying when Florida use tax applies to out-of-state purchases or inventory withdrawals, and avoiding duplicate tax liabilities.
• Nexus Evaluation – Working with businesses to identify where and when they become liable for charging, collecting, and remitting tax to various state and local taxing authorities.

Proper sales tax planning doesn’t just reduce liability—it also helps improve cash flow, pricing decisions, and customer experience. We ensure your business is prepared before the FDOR shows up.

Understanding FDOR Guidance: Letters of Technical Advice & Technical Assistance Advisements

Florida tax law is not always clear-cut. In ambiguous or complex situations, the Florida Department of Revenue provides written guidance through Letters of Technical Advice (LTAs) and Technical Assistance Advisements (TAAs). These documents can play a critical role in Florida tax planning by clarifying the Department’s position on specific tax matters.

• Letters of Technical Advice (LTAs) are written responses issued by the FDOR based on anonymous fact patterns submitted by taxpayers. These letters allow taxpayers to understand the Department’s position on a specific issue without revealing their identity or exposing themselves to scrutiny. While LTAs are not binding, they provide valuable insight into how the FDOR interprets Florida tax law and applies it in similar situations.
• Technical Assistance Advisements (TAAs) are formal rulings issued in response to a taxpayer’s request and apply specifically to the facts submitted. Though binding only on the requesting taxpayer, TAAs offer critical guidance in planning transactions and structuring compliance strategies.

At Moffa Tax Law, we routinely review and interpret these documents to guide clients through uncertain tax positions. When appropriate, we assist in drafting formal requests to the FDOR to secure advance guidance on complex transactions, providing an added layer of protection and predictability for your business.

Florida Tax Planning for High-Risk Industries

Certain industries face more intense scrutiny from the Florida Department of Revenue due to their transaction structures, cash handling, or history of compliance challenges. Our firm provides tailored Florida tax planning services for these high-risk sectors, helping clients reduce audit exposure and stay ahead of enforcement trends.

Industries we serve include:

• Automobile Dealerships – Structuring vehicle sales, managing trade-in credits, and properly documenting exempt out-of-state sales. FDOR audits often focus on Florida sales tax collection, dealer fees, and service department transactions.
• Construction & Contractors – Planning for the taxability of materials versus labor, managing subcontractor documentation, and ensuring compliance with consumer use tax and exemption certificates.
• E-Commerce & Online Retailers – Navigating remote seller rules, marketplace facilitator responsibilities, and multistate sales tax obligations. Many online sellers are unaware of their exposure under Florida’s economic nexus thresholds.
• Healthcare & Medical Providers – Addressing the taxability of medical devices and equipment, managing exempt sales, and understanding the rules for professional and ancillary services under Florida law.
• Hospitality, Hotels & Vacation Rentals – Managing compliance with transient rental taxes, short-term lease rules, resort fees, and mixed-use property arrangements. These businesses often face overlapping local and state obligations.
• Restaurants & Bars – Planning for accurate taxability of food and beverages, tip income reporting, delivery service integration, and point-of-sale systems that meet FDOR recordkeeping standards.
• Retail & Convenience Stores – Ensuring proper classification of taxable and non-taxable items, handling tobacco and alcohol excise taxes, and maintaining documentation for exempt sales. Even minor mistakes in sales tax reporting can result in large penalties.

Every business we work with receives industry-specific guidance grounded in years of audit defense and real-world experience.