Jacksonville Sales Tax Audit Defense
Protect your business with trusted Jacksonville sales tax audit defense. Moffa Tax Law provides skilled guidance through audits and dispute resolution.
Florida Department of Revenue Lawyer for Duval County Businesses
If you’ve received an audit notice from the Florida Department of Revenue (FDOR) and operate a business in Jacksonville or Duval County, now is the time to act. FDOR auditors are increasingly aggressive in Northeast Florida, and a routine audit can lead to massive assessments, suspended resale certificates, or even criminal investigations. Whether you run a car dealership on Philips Highway, a convenience store in Arlington, or a seafood restaurant near the St. Johns River, an experienced Jacksonville sales tax audit defense attorney can help protect your business and your rights.
Why Are Jacksonville Businesses Being Audited?
Most FDOR audits are triggered by patterns in data, industry risk, or reporting inconsistencies. Jacksonville-area businesses are flagged for audit due to:
- High 1099-K (credit card) sales compared to reported taxable sales
- Discrepancies between IRS filings and Florida sales tax returns
- Improper use of resale or exemption certificates
- Alcohol and tobacco inventory compared to reported taxable sales
- Use of online platforms (e.g., Airbnb, Square, FareHarbor)
- Industry sweep programs targeting common noncompliance areas
If you’ve received a DR-840 Notice of Intent to Audit Books and Records, the Florida Department of Revenue has already opened your file—and will expect complete, defensible documentation.
What Happens During a Florida Sales Tax Audit?
Once a Jacksonville business is audited, the process typically follows five stages:
- DR-840 Audit Notice – Formal start of the audit by FDOR.
- Records Request – You must submit POS reports, tax returns, bank statements, Z-tapes, and more.
- DR-1215 Preliminary Audit Findings – Auditor issues proposed findings, often with estimated tax based on missing or weak records.
- Notice of Proposed Assessment (NOPA) – Final assessment if you don’t respond.
- Protest or Litigation – You may file a written protest or take the matter to The Division of Administrative Hearings (DOAH) or Duval County Circuit Court.
Without legal help, even innocent mistakes can lead to estimated assessments, penalties, and liens.
What Happens If You Ignore the Audit?
Ignoring a Florida sales tax audit is one of the biggest mistakes a Jacksonville business owner can make. Consequences include:
- Estimated tax assessments based on industry averages
- Tax warrants filed with Duval County courts
- Bank levies and seizures
- Suspension of your Florida resale certificate
- Possible referral to the FDOR’s criminal enforcement division
Acting early with an experienced sales tax audit lawyer can make the difference between resolution and crisis.
Why Hire a Jacksonville Sales Tax Audit Defense Attorney?
We’re not general tax lawyers. Our firm focuses entirely on Florida state and local tax law. We help businesses across Jacksonville and Northeast Florida respond to audits, challenge assessments, and avoid criminal penalties. We regularly defend clients dealing with:
Estimated audits based on partial or missing records
Accusations of unremitted or stolen tax
Misuse of resale certificates or exemption forms
FDOR subpoenas or interviews
Sales tax protests and litigation in Duval County or DOAH
Our strategies are built on decades of experience with FDOR enforcement patterns, audit methods, and settlement negotiation.
FDOR Audit Targets in Jacksonville – Industries at Risk
FDOR audits focus on businesses most likely to misapply sales tax rules. In Jacksonville and Duval County, the following industries face high audit risk:
- Auto Dealerships and Used Car Lots – Especially along Philips Highway, Atlantic Boulevard, and Edgewood Avenue. FDOR often audits for misuse of resale certificates, tax on repair charges, and title-related underreporting.
- Convenience Stores and Gas Stations – The Department compares alcohol and tobacco purchase records to reported taxable sales. Stores in Northside, Westside, and Springfield are often targeted.
- Restaurants and Food Vendors – From seafood spots near the St. Johns River to fast food and independent restaurants in Riverside or San Marco. FDOR looks for unreported cash sales, improper POS tracking, and missing Z-tapes.
- Hair Salons, Nail Salons, and Barbershops – Often misreport tax on product sales or operate under unclear booth rental structures.
- Contractors and Construction Businesses – Florida considers contractors the final consumers of materials. FDOR audits for failure to pay sales or use tax on materials and equipment.
- Medical Offices and Clinics – Especially those selling taxable products like orthotics, nutritional supplements, or skincare.
- Admissions to Events, Shows, and Attractions – Jacksonville venues offering ticketed entertainment (concerts, sports, tours) are often audited for bundled charges and underreported admissions. The Department of Revenue is not only looking for Jaguar games or events of a similar size at the Everbank Stadium. Smaller venues are in fact targeted more frequently and often more aggressively.
- Boat Tours and Charters – Businesses offering fishing charters, sunset cruises, and sightseeing boat tours on the St. Johns River or Jacksonville Beach may be audited for failure to collect sales tax, incorrect classification of taxable services, and resale certificate misuse.
- Artificial Intelligence (AI), Software, and Data Processing:
Jacksonville’s fintech startups, logistics firms, and custom software developers—especially those near the St. Johns River and Baymeadows—often rely on cloud-based platforms, AI-enhanced tools, or hosted software dashboards. These services may trigger Florida CST if they involve data processing, hosted application access, or streaming-like analytics. Because the line between exempt consulting and taxable information services is often blurred, businesses offering or subscribing to these tools risk misclassification and audit if they don’t carefully analyze CST applicability.
Schedule a Consultation with a Jacksonville Sales Tax Attorney
If you’ve received a DR-840 audit notice or DR-1215 preliminary findings, don’t wait until it becomes a Notice of Proposed Assessment. We help Jacksonville-area businesses:
- Respond to Florida Department of Revenue audit letters
- Prepare and present proper records
- Challenge overestimated findings
- Negotiate settlements or payment plans
- Litigate in Duval County or DOAH
- Avoid criminal referrals and personal liability
Most audits are triggered by data red flags, such as 1099-K discrepancies, industry trends, or information-sharing agreements.
It’s the formal FDOR notice that your business is under audit. You’ll be required to submit records and respond within a short timeline.
Yes. FDOR uses industry markups and averages, which often produce inflated assessments if documentation is incomplete.
Auto dealerships, convenience stores, restaurants, salons, and contractors are the most frequently audited.
Ignoring the audit or submitting partial records may lead to estimated assessments, penalties, and aggressive collection actions.
Yes. You have 60 days to file a protest once you receive the Notice of Proposed Assessment (NOPA).
You can escalate to formal litigation in the Division of Administrative Hearings (DOAH) or Duval County Circuit Court.
Yes. If you don’t pay a final assessment, FDOR may issue a tax warrant, freeze your accounts, or garnish business revenue.
It’s the Department’s preliminary findings. It includes estimated tax due, penalties, and a summary of the auditor’s calculations.
Yes. Business owners, officers, or responsible persons can be held personally liable under Florida law.
Willful failure to remit collected tax, use of fake resale certificates, or substantial fraud may result in criminal investigation.
It depends on your case. Many audits can be resolved through protest or settlement without litigation.
Many are. Fishing charters and transportation charters are usually taxable, while sightseeing tours may be exempt. Misclassification is a common audit issue.
Yes. They use federal and third-party data to identify discrepancies and trigger audits.
Yes. We can help negotiate installment agreements, especially after a protest or final assessment.
Yes. FDOR audits are complex, and without legal guidance, you risk overpaying or facing unintended liability.
Sometimes. Many audits are handled remotely, but FDOR may conduct onsite visits or request interviews.
Tax returns, POS data, Z-tapes, bank statements, exemption certificates, and general ledgers.
Yes. FDOR can audit past years, and former owners may still be held accountable.
Reach out to our office to schedule a confidential consultation. We serve clients throughout Duval County and all of Northeast Florida.
- (954) 800-4138
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Trade Centre South, Suite 930A
100 W Cypress Creek Rd. Fort Lauderdale, FL 33309 - info@moffataxlaw.com
Schedule a confidential consultation today
Orange Park, Mandarin, the Beaches, and all across Northeast Florida.
For statewide help, visit our Florida Sales Tax Audit Defense page for detailed information on FDOR procedures and appeals.
