Verizon Disputes $3 Million Florida Sales Tax Assessment
- Sales Tax News
- Feb 27, 2012 | Will Frei
Verizon is challenging a $3 million Florida sales and use tax assessment on the grounds that the date falls outside the Florida statute of limitations.
On February 8, 2011, the Florida Department of Revenue "issued a notice of Proposed Assessment [to Verizon] . . . for sales and use taxes and interest totaling $3,169,168.74." Verizon contests the Florida assessment on the following grounds:
- The Florida statute of limitations states that the Department of Revenue must "assess" a taxpayer "within 3 years after the date the tax is due, or such return is filed, whichever occurs later." According to Verizon, the Department mailed a proposed assessment--which takes 60 days to become "a final assessment"--to the company with less than sixty days "...left in the statutes of limitations Window."
- Verizon argues that a proposed assessment does not constitute an "assessment" as outlined in the statute of limitations.
According to James Sutton Jr., an attorney with Moffa, Gainor, & Sutton, PA, this is the first suit of its kind in Florida. Yet Verizon is not the only large company to receive a such a "sales tax bill." Arizona gave Amazon a $53 million bill, and Texas told amazon they owed the state $269 million.