Updated: Sep 4, 2024 Business owners going to jail over sales and use tax compliance issues is very rare, but it can happen. There was a recent instance where a business owner was arrested and charged with a felony for collecting almost $500,000 in sales tax and failing to remit it to the Florida Department of Revenue. Here are some tips on how to avoid a prison jumpsuit.
Key Takeaways:
Be responsive when the taxing authority contacts you. The taxing authority did not just show up at her door with handcuffs. They (allegedly) informed her of the tax collected, not remitted issue, it was not addressed appropriately.
Make sure that when sales tax is collected, all of it is remitted to the appropriate taxing authority. Taxing authorities take a hard line on tax collected, not remitted.
Address sales and use tax compliance issues proactively. The amount she is said to have collected and not remitted relates to sales over a period of time. Addressing compliance issues timely will short circuit such extreme penalties.
Our mission to provide a resource so business owners, accountants and bookkeepers can understand sales & use tax compliance. We know that sales and use tax laws are not the easiest to understand. Our focus is on empowering you with a framework and general understanding, so you know what questions to ask and where to go to get the information you need to stay on the right side of sales and use tax compliance.
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