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Verizon Disputes $3 Million Florida Sales Tax Assessment

  • 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:

  1. 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."
  2. 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.

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Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Avalara Author
Will Frei
Avalara Author Will Frei
Will Frei covers sales tax news including best practices, legislation and sales tax technology. He is the Social Media Manager at Avalara.