In the course of your business or personal life, you may find yourself under examination by either the Internal Revenue Service or the Florida Department of Revenue. When that happens, having qualified, knowledgeable representation can make all the difference in the outcome of the exam. The following is a summary of how we assisted one of our clients during their examination.
A local, family-owned construction and manufacturing company, was at the tail end of a Florida Department of Revenue (“FDOR”) Sales and Use Tax Exam. FDOR had presented a “Notice of Proposed Assessment” for approximately $1.3 million. The taxpayer was represented by their CPA of 25 years and an attorney from a prominent national firm. They had met with the supervisor from the FDOR who was adamant that the Notice of Proposed Assessment was valid. The owner of the company was distraught. That kind of a tax would put them out of business and in bankruptcy. They found their way to Ron Friedman through an attorney who was one of Ron's clients.
We analyzed all the documentation provided to the FDOR as well as the FDOR reports and felt the true tax liability was much, much lower. We meticulously picked apart every computation and assertion by the FDOR and researched the state tax laws applicable to the taxpayer. We created a 75-page “informal written protest”, including an analysis of the facts, law, computations, and proof that ultimately determined the taxpayer owed only $89,000 in back taxes.
We then met with the same supervisor from the FDOR, presenting our protest letter and the corresponding support. After the FDOR reviewed all of the information and calculations provided by us, they reduced their Notice of Proposed Assessment from $1.3 million to $89,000 of tax and $27,000 of interest and all penalties were waived. We saved the client $1.2 million as well as their business!