Our firm's only business is our clients' success. An owner of a Florida retail store engaged us to represent the store during a sales tax audit by the Florida Department of Revenue. A preliminary risk analysis indicated the potential assessment for five back years of delinquent sales taxes, interest and penalties could approach $100,000. The books and records of the client were in disarray and in many cases simply non-existent. We obtained a postponement of the audit to provide sufficient time to apply alternative procedures to establish that most sales tax had been properly paid. By combing through what documentation did exist, contacting the client's shipping companies to obtain their documentation of out-of-state shipments and by writing to certain large customers, we were able to document that the vast majority of the client's sales were in fact exempt from sales tax. After presenting the Department of Revenue auditors with the client's newly organized documentation, we reviewed their formal proposed audit changes. Our review identified a variety of clerical and arithmetic errors, all in favor of the government. Each of these was protested and eventually a final audit report was issued and accepted by the client. In addition, by citing precedents established by the Department of Revenue we were able to convince the auditors to waive all proposed penalties. As a result, the assessment dropped from an anticipated $100,000 down to $15,000. As a final note, based on our findings during the audit process we have assisted the client in the implementation of a computerized accounting system and record maintenance methodology. © 2007, Mallah Furman. All Rights Reserved.   The CPA licensure designation is regulated by the State of Florida.   The CVA designation is regulated by the National Association of Certified Valuation Analysts.   Privacy Policy | Legal Disclaimer | Site Map