When Florida taxpayers disagree with a tax assessment or refund denial issued by the Florida Department of Revenue (DOR), they have options to challenge the decision. One of the most efficient and cost-effective ways to do this is through Informal Dispute Resolution (IDR)—a process designed to resolve tax disputes without the need for formal litigation.

What is Informal Dispute Resolution (IDR)?

Informal Dispute Resolution (IDR) is an internal review process within the Florida Department of Revenue’s General Tax Administration Program. This process allows taxpayers (or their representatives) to dispute certain agency actions before resorting to the more complex formal protest or litigation routes.

IDR focuses on resolving disputes based on current state tax laws and the taxpayer’s specific circumstances. Skilled tax specialists, known as tax conferees, conduct these reviews. Tax conferees often include Certified Public Accountants (CPAs) and members of the Florida Bar, ensuring that disputes are analyzed by experts in Florida tax law.

What Types of Disputes Can Be Reviewed Through IDR?

IDR can be used to challenge a variety of agency actions, including:

• Proposed audit assessments – These occur when the DOR audits a taxpayer and determines that additional tax is due.
• Assessments based on tax returns or other required filings – This includes situations where the DOR issues an assessment based on a taxpayer’s failure to file, underreporting, or incorrect filing.
• Refund denials – If a taxpayer submits a refund claim and the DOR denies it, they can challenge the denial through IDR.

How to Request IDR Review

To request an IDR review, a taxpayer must submit a written protest within the deadline stated on the assessment or refund denial notice. The protest must comply with Rule 12-6.003, Florida Administrative Code, which outlines specific requirements for filing an informal protest.

A taxpayer’s failure to timely file an informal or formal protest will result in the assessment or refund denial becoming final. These deadlines are strict and missing them can bar any future legal challenge.

Limited Options for Late Requests

In some cases, a taxpayer may still have a chance to resolve a dispute even after missing the IDR protest deadline. Under section 213.21(11)(a), Florida Statutes, the DOR may, at its discretion, consider a settlement or compromise request if filed within 180 days after the protest deadline expires. However, the taxpayer must meet at least one of the specific conditions outlined in the statute.

It’s important to note that this type of discretionary review is not subject to appeal under Chapter 120, Florida Statutes, meaning the DOR’s decision to accept or deny a late request cannot be formally challenged.

Where to Send an IDR Protest

Taxpayers can submit their IDR protest through U.S. mail, fax, or email (preferred). The contact details for IDR submissions are:

Mail:
Informal Dispute Resolution
P.O. Box 7443
Tallahassee, Florida 32314-7443

Phone: 850-617-8346
Fax: 850-921-2983
Email: [email protected]

For protests related to other tax matters, taxpayers should refer to the specific instructions on their notice.

Seeking Additional Guidance

Taxpayers looking for technical tax guidance related to their case may also request a Technical Assistance Advisement (TAA) from the Office of Technical Assistance. More details on TAAs can be found on the DOR’s website.

Why You Need a State Tax Lawyer for Protest

IDR provides Florida taxpayers with an opportunity to resolve tax disputes quickly and efficiently without the burden of formal litigation. Because of this, CPAs and other tax professional often will file an Informal Protest contesting erroneous assessments. Clients may wonder why a lawyer is needed at this point. The answer, unfortunately, is a simple one. Lawyers can litigate tax cases. Even when the intention is to avoid litigation at all costs, having an attorney who can litigate a state case presents differently to a Department of Revenue conferee. The Department of Revenue knows that CPAs and other tax professionals cannot litigate tax cases, and so there is no leverage on the side of the CPA because the CPA can’t escalate the case further if the Department of Revenue is not reasonable on a final assessment. Without that leverage, the Department of Revenue is empowered to sustain assessments, offer less reasonable settlements, and, in some cases, even increase assessments with the knowledge that a CPA cannot take the case further. Even in cases where litigation is not wanted, the ability to litigate can significantly impact settlements and revisions early on in the Protest process. Further, while CPAs and other tax professionals are excellent handling audit work, they may not know some of the unique legal, procedural, and administrative nuances that lawyers do. What is the solution? TEAM WORK! Generally, the best approach is having a Florida tax attorney work with your CPA or other tax professional to craft the best Protest possible for your case. 

For further assistance, consider consulting a Florida tax professional to ensure your protest meets all legal requirements and deadlines.