Florida Sales Tax License Revocation / Business Shutdown Checklist

authorize businesses to collect sales and use tax. Revocation occurs when the Department cancels this authorization due to noncompliance with filing, payment, or reporting obligations, preventing you from legally collecting sales tax or filing returns.

Repeated missed filing deadlines, nonpayment of assessed tax, failure to respond to

Department correspondence, or identified compliance violations typically trigger revocation.

Extended periods of business inactivity or operating differently than registered may also cause the Department to revoke a certificate of registration.

Understanding why revocation occurs helps you address the underlying compliance issue and prevents additional enforcement actions. Your revocation appears on official Department records and affects your business registration status with the state.

Consequences of Ignoring Revocation

Operating after revocation without reactivating your certificate of registration violates Florida law and exposes you to additional enforcement actions. The Department may pursue assessments for unpaid taxes, penalties, and interest, plus a 10 percent administrative collection processing fee if the debt remains unpaid for 90 days.

Continuing to collect sales tax without proper authorization triggers serious legal consequences under Florida Statutes. Failing to remit collected sales tax with intent to defraud constitutes theft of state funds, punishable as a second-degree misdemeanor for amounts under $1,000, a third-degree felony for $1,000 to $20,000, a second-degree felony for $20,000 to $100,000, and a first-degree felony for amounts exceeding $100,000.

Criminal prosecution may proceed independently of civil tax liability and collection actions.

Ignoring revocation does not make the problem disappear, but typically makes consequences more severe through accumulating penalties and ongoing enforcement.

Personal Liability for Sales Tax Debt

A certificate of registration revocation does not eliminate your sales tax debt or protect you from personal liability. You remain responsible for all unpaid sales tax, penalties, and interest owed before the revocation occurred.

Florida Statutes impose personal liability on any person required to collect sales tax who willfully fails to collect, account for, or pay over the tax. Officers or directors with administrative control who willfully direct employees to fail to collect or pay also face personal liability. The penalty equals twice the total tax evaded and is reduced proportionally as the business entity pays the underlying tax at a rate of two dollars for every one dollar paid.

Steps to Close Florida Sales Tax Account

1. Contact the Florida Department of Revenue at 850-488-6800 to confirm your account status and obtain documentation of total liability. Request an account summary showing unpaid sales tax, penalties, interest, and any administrative collection processing fees, then clarify what steps the Department requires to formally close your account.

2. File all missing returns for periods you operated and collected sales tax, using your sales records to calculate tax owed for each unfiled period. Your returns must cover all months or quarters from activation through the date you stopped collecting tax.

Filing late returns documents your actual obligation, although penalties and interest continue to accrue until full payment occurs. Prepare accurate calculations to avoid future disputes over amounts owed.

3. Pay all outstanding sales tax, use tax, penalties, interest, and administrative fees to satisfy your total liability. If you cannot pay the full amount immediately, contact the

Department to discuss installment payment arrangements requiring a minimum 25 percent down payment and full balance payment within one year.

4. Submit a formal closure request to the Department of Revenue by notifying them in writing that you are closing your business. Include your certificate number, business name, and the date you stopped operating to create an official record that stops future filing obligations. Mark your final sales tax return as “Final” when filing, ensuring it covers the period from your most recent return filing to your closing date.

Record Retention Requirements

Florida dealers must keep complete records for five years following business closure, not just three years as commonly assumed. Maintain all sales tax returns, payment records, correspondence with the Department of Revenue, and closure confirmation.

Your records must include all transactions, invoices, bills of lading, gross receipts, resale certificates, and other pertinent documents as required by law. The Department may conduct audits or reopen accounts if additional sales tax liability is discovered during subsequent reviews.

Proper record retention protects you from future disputes and verifies proper completion of all requirements. Destroying records prematurely may result in assessments based on Department estimates rather than actual sales data.

Common Compliance Errors

Failing to file returns for all operating periods creates ongoing debt and prevents account closure. The Department requires returns for every period you collected sales tax, regardless of revocation status.

Operating without a valid certificate of registration violates Florida Statutes and may result in criminal prosecution beyond civil tax liability. Paying only the sales tax amount without penalties, interest, and administrative fees leaves an outstanding balance that continues to accrue additional charges.

Calculate your total liability, including all components, before submitting payment. Missing deadlines in correspondence or payment plans results in additional penalties or escalated enforcement actions that complicate resolution.

Closing your business without formally closing your certificate of registration allows the

Department to continue assessing filing obligations and penalties. Formal closure through written notification stops future obligations and finalizes your account status, preventing continued accumulation of penalties for unfiled returns.

Facing State Enforcement or Payroll Tax Issues?

If you’ve received a state tax notice and aren’t sure how to respond, we can help you review your options and next steps.

We help with

• State enforcement actions and notices
• Payroll tax debt review and resolution
• Penalty and interest reduction options
• Payment plans and compliance solutions
• Representation before state tax agencies

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