Did you know that it is a felony in Florida for the failure to file six consecutive sales tax returns in Florida? Apparently, neither did a Naples, Florida auto repair shop owner.
On April 25, 2013, [name omitted], owner of Tony Rosado Automotive Services, Inc. located at 1890 Elsa St., Naples, Florida was arrested by the Collier County Sheriff's Department on felony charges for allegedly FAILURE TO FILE SIX CONSEQUETIVE SALES TAX RETURNS. The Naples,
Florida resident faces up to 5 years in prison and up to $5,000 in fines in addition to repayment of any taxes, interest, and investigation expenses. According to investigators, [name omitted] collected sales tax from customers in the auto repair business but during periods of 2007
through 2010, he failed to file sales tax returns as mandated by Florida law.
Florida law requires business owners that provide auto repair services to act as a sales tax collection agent to the state and they must file returns and remit all sales tax collected to state of Florida. Unfortunately, there is a lot of confusion in the industry because a pure labor service is not subject to sales tax. However, if any tangible personal property transfers to the customer,
then the whole transaction is subject to sales tax – even a drop of oil. Thus, the industry faces close scrutiny from the Florida Department of Revenue. Further, Florida sales tax is required to be separately stated on the customers invoice and Florida law mandates that the taxes collected be the property of the state from the moment it is collected from the customer. Therefore, despite
putting these amounts in their own checking accounts, business owners must segregate sales tax collect and remit it to the state in a timely fashion/
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