To: Jorj X Mckie who wrote (18456 ) 10/22/2013 8:05:47 PM From: TimF Respond to of 23934 I Am Not Sure the State of Florida Understands This Whole Internet Thingie October 21, 2013, 10:05 am Every three years I have to endure a sales tax audit from the State of Florida. This year they actually sent me well in advance a list of all the paperwork they needed. I sent everything to them electronically weeks ago. So why do they have their auditor fly to Phoenix, stay in a hotel, and do her analysis of this paperwork on her laptop in my office? In the hour since she has been here she has not asked me for one thing. It is just bizarre. Given that I have been audited by them twice in the past and never owed more than forty or fifty bucks in back taxes from computation errors, I am pretty sure her flight cost way more than the expected value of her trip, particularly since she had done nothing so far she could not have done (better probably) in her own office.coyoteblog.com John O. Solely for intimidation. You can't have a fair tax audit without feeling like you're being intimidated by the state.coyoteblog.com Audit Update October 21, 2013, 4:43 pm The Florida auditor sitting in my one-man office was shocked to learn I would not be in the rest of the week. I said you scheduled the audit visit for today, so I changed my plans and am in the office today, but leave tomorrow. Apparently she assumed that the audit schedule gave her the right to stay as long as she wanted. She was planning to sit in my office for another 2-5 days. I told her sorry, but if she wanted to book 5 days, she should have booked five days. And by the way, if she had tried in advance to make me sit dormant in my office all week, I would not have agreed to the visit. This is just insane in an Internet world. Everything she asked for in advance was sent to her electronically. Even though she is sitting right next to me, her requests to me for more data have come by email. I can't figure any reason why she is even here, unless Florida finds it cheaper to fly her around and use other people's offices rather than provide her with one of her own. By the way, this is fairly typical of a lot of government workers in my experience. If they block a meeting on their calendar for the whole afternoon, they want it to last the whole afternoon. There are a lot of jobs out there where people are most comfortable proving their worth by showing that their calendars are always full.coyoteblog.com Florida Audit: Total Amateur Hour October 22, 2013, 10:02 am So the Flordia sales tax auditor presented her preliminary findings. She believed that I had under-reported revenues and sales taxes by half! Hundreds of thousands of dollars over three years. I told her it was absolutely impossible. No way we were off by that much. And we were not. It turns out that the FL sales tax report we fill out has five categories of revenue one must report in. One is general sales. Another is lodging. We have revenue in both and report on both lines. She had apparently only pulled the data from her system from the general sales line. Total amateur hour. Incredible. (Several years ago there would have been a good "Bush League" pun but since the governor's office has turned over the opportunity is lost). The other finding is that we had about 8-10 expense invoices (out of hundreds I had to pull yesterday by hand, ugghh) without any sales tax broken out on the invoice. This may mean the vendor did not charge sales tax, or that the vendor just did not break it out. Of course, she takes the former position, without any evidence. This expense invoice audit is an irritating result of the "use tax" rules that states are imposing to try to make one pay tax on out of state sales. But these were not out of state vendors, they were all Florida vendors. I told her that if she thought they were not charging sales tax, to go audit them. She said I had to pay. This is absurd. If I am found to have under-collected taxes from my customers, then I have to pay. She is not going to go to all my campground customers and charge them back use tax. But when I am the customer and the vendor potentially undercharges me, I have to pay as the customer? There is no consistent rule to explain why this makes sense, except for the general rule of government that they will take money from whomever they can whenever they think they can get away with it.coyoteblog.com