How the audit unfolds
1. Notice of intent to audit (Form DR-840)
FDOR tells you which taxes and periods it will examine. Audits normally cover the last three years, the limit set by §95.091(3), F.S. You usually have about 60 days before fieldwork begins. Use that time to get your records in order before an auditor sees them.
2. Records request and fieldwork
The auditor asks for sales journals, resale and exemption certificates, purchase invoices, and bank statements. If your records are incomplete, FDOR can estimate the tax it says you owe under §212.12(5), F.S. That estimate is usually far higher than what a clean reconstruction would show.
3. Sampling and preliminary findings
Most audits test a sample of your transactions and project the results across the whole audit period. If the sample is wrong, the projection is wrong too, so this is where most of the reduction is won.
4. Notice of Proposed Assessment
The proposed tax, penalty, and interest. An informal written protest is due within 60 days under §213.21, F.S. and Rule 12-6.003, F.A.C. Missing that deadline narrows your options a lot.
5. Collection if unresolved
Once the assessment is final, FDOR can freeze your bank accounts under §213.67, F.S. Business officers can be held personally liable for tax they collected and didn't remit under §213.29, F.S.
Mistakes that raise the assessment
- Handing over records without reviewing them first.
- Agreeing to a sampling method without testing whether it represents your business.
- Missing exemption or resale certificates that could still be collected during the audit.
- Letting the 60-day protest window close while waiting on the auditor.
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Talk to a CPA before fieldwork starts
The $3,000 initial assessment covers a review of your notice and records, an exposure analysis, and a fixed scope. No outcome is guaranteed.