Lawmakers Pushes Anti-Small Business, pro-Tax Audit bills in Florida Legislature

 As the Florida Legislature enters the final week of the 2022 legislative session, two bill that will be up for debate and possibly a vote—SB1382 and HB 1041—pose a fiduciary threat to small businesses around the state.

The bills are an Accountant’s dream, as the measures would not allow small business owners or taxpayers, the opportunity to introduce additional tax receipts or records after a tax audit is conducted against their respective businesses.

In addition, the measures would paint the taxpayer as a cheat, who purposely withheld documents, an action that would initiate a 50% fine in addition to any tax debt estimated by the state.

Rep. Mike Caruso (R), who was recently censured by the Palm Beach Republican Executive Committee for endorsing a Progressive Democrat over a fellow Republican for the state legislature, and is also an accountant by trade, is one of several Republican lawmakers pushing the bill in the Florida House of Representatives.

Progressive Democrat Rep. Anna Eskamani has also voted in favor of the bill in the House Ways and Means Committee.

The bills do the following:

• prohibits businesses from presenting additional evidence to a judge to prove they do not owe the estimated taxes,
  • creates a presumption in law that the Department of Revenue’s tax assessment is correct,
  • creates a presumption in law that failure to provide adequate records when requested by the Department of Revenue is evidence of willful neglect.
  • doubles the floor on fines from 25% to 50%

Florida Gov. Ron DeSantis has dubbed Florida “The Freest State in the U.S.” because of his less government, fewer taxes, and more freedoms approach to governing.

Are these two bills what Gov. Ron DeSantis refers to as Florida being the ‘Freest State?”