Florida Tax Administration, Collections, and Appeals
Florida Tax Administration, Collections, and Appeals tests how the Florida Department of Revenue assesses, collects, and resolves tax disputes. The exam covers audits, protests, warrants and liens, refunds, penalties, and administrative appeals.
Core rules
- DOR audits begin with notice and a review of returns and records. After an audit, DOR issues a Notice of Proposed Assessment. A taxpayer generally has 60 days to file a written protest. If no protest is filed, the assessment becomes final.
- A protest should identify the disputed items and state the facts and law. If DOR denies the protest, the taxpayer may request an administrative hearing before the Division of Administrative Hearings or pay the assessment and sue for a refund in circuit court, depending on the tax and procedure.
- Collection tools include tax warrants, liens, levies, garnishment, and jeopardy assessments. DOR may enter into payment agreements and compromise certain liabilities. The taxpayer rights advocate can assist with unresolved collection or procedural problems.
- Refund claims generally must be filed within three years after the tax is paid or the return is due, whichever is later. Interest and penalties continue to accrue until the liability is paid.
- Penalties for late filing can reach 10% per month up to 50%; late payment is generally 10%; fraud can be 100%. Interest accrues at the statutory rate. Technical Assistance Advisories and written rulings provide prospective guidance but do not bind DOR for other taxpayers.
Worked example
A retailer receives a $20,000 Notice of Proposed Assessment for sales tax. The 60-day protest period begins with the notice date. If the retailer misses it, the assessment becomes final and DOR can issue a tax warrant and pursue collection. If the retailer protests within 60 days and supports the position with exemption certificates and ledgers, DOR may reduce or withdraw the assessment. If DOR upholds it, the retailer can seek an administrative hearing or pay and claim a refund. Filing a protest does not stop interest from accruing unless the tax is paid or a bond is posted.
Traps
Do not treat the 60-day protest as optional or open-ended. Do not ignore a tax warrant; it becomes a lien and can support levy. Do not assume a refund claim can be filed years after payment. Do not confuse an informal call to DOR with a written protest. Do not overlook penalties and interest when advising on the cost of an appeal.