Taxes

What is the Certified Audit Program?

The Certified Audit Program is a cooperative effort between the Florida Department of Revenue and the Florida Institute of Certified Public Accountants (FICPA). This program gives taxpayers the opportunity to hire qualified CPA firms to review their sales and use and local option tax compliance. As an incentive to incur the cost of a certified audit, penalties are waived and interest abated if tax is owed as a result of the audit. Additionally, except in cases of fraud or misrepresentation, the Department will not audit taxpayers for the same year(s) or tax covered by the certified audit. The program was enabled by section 213.285, Florida Statutes.

What are the Benefits to the Taxpayer?

Taxpayers receive a waiver of all penalties, abatement of the first $25,000 of interest and an additional 25 percent of any interest liability in excess of the first $25,000. (These incentives do not apply where tax was collected but not remitted.)
Once the Certified Audit Report is approved by the Department, the taxpayer will not be audited for sales and use tax for the year(s) covered by the audit, unless it is later determined there was misrepresentation or fraud.
The cost of hiring the CPA firm is deductible as an ordinary and necessary business expense.

Why was the Certified Audit Program Created?

The Certified Audit Program was created to increase voluntary compliance by taxpayers. It also serves to decrease state involvement in business. The program also extends Florida’s tax collection capabilities and permits more effective use of audit resources.

Who Pays for the Audit?

All fee arrangements are strictly between the CPA and the taxpayer.

What are the Eligibility Criteria?

Taxpayers who have not been mailed a Notice of Intent to Audit (DR-840) from the Department are eligible for the program. Other eligibility requirements apply. Please contact the Certified Audit Program Manager at 850-921-2224 if you are interested in participating.

How Do I Apply?

You may hire a Florida CPA who has successfully completed the certification course and who is employed by a qualified firm to submit for you a Request to Participate in the Certified Audit Program. The Florida Institute of Certified Public Accountants (FICPA) can supply you with a list of CPAs qualified to perform certified audits. Please contact the Continuing Professional Education Program Development Manager at 850-224-2727, ext. 419, or visit their website at www.ficpa.org.

For More Information on the Certified Audit Program

Contact

Certified Audit Program
Compliance Support Process
Florida Department of Revenue
P.O. Box 5139
Tallahassee, FL 32314-5139

Telephone: 850-921-2224. You may fax questions to 850-922-7747.

Reference Material

Visit the Tax Law Library or call Taxpayer Services at 800-352-3671 to request a copy of section 213.285, F.S. or Rule 12-25 Pt II, Florida Administrative Code.