Expert: Richard Stolp - 6/15/2009

Question
I own a cleaning company in Florida. I recently received a notice stating I was being audited by the Florida dept. of revenue, for Sales and Use Tax. The problem is I never collected sales tax, as I did nit know I had to. I am licensed, and am a registered S-Corporation. I paid a CPA to set my business up, but I was never once informed that commercial cleaning was taxable. I never knew I had to apply for a sales and use tax certificate. I'm scared to death,and don't know what to do. I did not willfully neglect to collect or pay these taxes, I simply did not know I had to. I'm not sure what I should do, I know I don't have the money to pay these taxes, much less penalties and interest

Answer
I would call the Florida State Dept of Revenue and talk to them about how to solve your balance due.  You didn't say how much you owe, but the state will offer to put you into a payment arrangement for your balance.  You may have a bit more leverage if you initiate the call instead of waiting for them to proceed with the collections process.  Your CPA let you down when they didn't ask for your state tax records as part of setting up your tax returns.  Unfortunately, not knowing will not help your balance due, but your early action will at least keep you informed about your options.