![]() Make sure to slowly and closely read the sentence so you can see the gravity of the statement. That statement says:įailure to produce all requested work records will result in the loss of your “earned tax rate” and the assignment of the “standard tax rate” (5.4%) until the quarter following your production of the requested records. Probably the most important statement in the entire form is a little below the list of “needed” records for the RT audit. What I routinely see is that FDOR RT auditors like to push for information that seems more related to “sales” rather than employment or wages and related expenses. It is rather encompassing, and many RT auditors find ways to ask for even more information. Where the FDOR’s form “strays” from the reality of Florida RT audits is in the next section addressing “what happens during the audit.” After referencing the issuance of the audit notice, the Department lists the “types” of records needed for the RT audit that includes:Īs you can see, it is not a short list. This information is shared with the IRS so it can have larger federal implications and consequences if the IRS acts on the information relayed by the FDOR and its auditors. Recently, the Department has looked into reclassifying contactors to employees as well as reclassifying distributions as wages. That is not much consolation and generally is related to whatever “hot button” the Department is looking into per federal guidance/request. The FDOR’s form on RT audits starts with pertinent taxpayer questions related to “why are taxpayers audited” and “how was I selected.” While there is interesting information provided on each subject, the Department likely is not going to give you the specific answer if/when your client is contacted about being selected for an audit. ![]() While it hits most of the topics to at least be a reasonable resource ahead of a RT audit, business owners and tax professionals should be prepared for what “really” will happen apart from the “theoretical” explanation in FDOR Form RT-800063 (last revised in October 2018). The Florida Department of Revenue (FDOR) provides a form on its website that generally prepares a business for an audit. I had to prepare them for what to expect with current RT audits (by whatever name you might want to call them). I have talked recently with some business owners who remember it as that since that was the last time they went through that “pleasant” experience. ![]() And, depending on the age of business owners or managers, they still might refer to it as unemployment compensation audits. Many businesses might not realize that just behind that is the chance (risk) of a Florida Reemployment Tax (RT) audit. If you believe someone fraudulently collected unemployment payments using your information, take these steps to report it and protect yourself.įind more information about identity theft and unemployment benefits.For businesses in the state of Florida, the most likely audit would be a Florida Sales and Use Tax audit. If you receive Form 1099-G showing the wrong amount of unemployment compensation, contact your state unemployment agency to correct it.
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