Add Another 10% to Florida Sales Tax Liabilities

By: Tyler B. Korn, Esq.

Effective as of May 30, 2009, a 10% “administrative collection processing fee” will be imposed on any outstanding Florida Sales and Use Tax liability older than ninety (90) days. The fee is equal to 10% of the total amount of tax, penalty and interest owed, or $10 for each collection event, whichever is greater.

A “collection event” is defined as any time a taxpayer fails to (a) timely file a complete return, (b) timely pay the full amount of tax reported on a return, or (c) timely pay the full amount due resulting from an audit (after all appeal rights have expired or the result has been determined to be final).

The collection fee only applies when the Department of Revenue administers and collects the tax or fee. The collection fee also applies to taxes and fees other than Sales and Use Tax, including Unemployment Tax and Corporate Income Taxes. The Florida Department of Revenue will begin collecting the collection fee on September 1, 2009.

If you have any questions regarding the foregoing, please feel free to call us.

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