The taxpayer failed to present any documentation or evidence to refute the audit results and assessments of unpaid Florida sales and use tax and, as a result, the assessment of tax, penalty, and interest were deemed accurate.
The taxpayer maintained that the margin of profit used by the Florida Department of Revenue incorrectly calculated the tax owed and that the mark-up on products was substantially less than that claimed by the department. The auditor found that the amount remitted by the taxpayer could not be reconciled with the business records maintained by the taxpayer. Throughout the audit process, the taxpayer never presented documentation to dispute the audit findings. The audit notes and the methodology of the audit support the amounts and basis for the sales and use tax not remitted by the taxpayer. The assessment by the department of tax, penalty, and interest is presumed correct. The taxpayer should have kept records that would have accurately identified the inventory and sales made at the taxpayer’s convenience store, but the taxpayer kept no records to support its claims. As a result, the conclusions reached by the department regarding the taxable sales, the presumption of percentages, and the tax rate were deemed accurate. The taxpayer failed to present any statutory or regulatory authority to support its position. Without information to show that the taxpayer paid sales tax on all its taxable transactions, the department must include such transactions within the audit results. The taxpayer had a duty to maintain records and make them available, and is precluded from arguing that the inadequacy of its records contradicts the audit results. As such, the taxpayer was required to remit the unpaid sales and use taxes, penalty, and interest as stated in the department’s audit findings.