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Last Modified on May 05, 2026
Taxpayers in Florida have to adhere to federal tax requirements and the state tax requirements that are put in place by the Florida Department of Revenue (DOR). Like with federal taxes, there are Florida state tax disputes that can occur with the DOR, and it’s important to know what you can do to resolve and prevent these disputes.
Potential State Tax Disputes in Florida
From 2024 to 2025, the Florida DOR collected $65.7 billion in state and local taxes, up from $65.49 billion in 2023 to 2024; $41.1 billion of the 2024 to 2025 collected taxes were from the sales and use tax. The agency will take action if you make errors on your taxes or fail to pay them. There are several potential issues and disputes that can arise in these cases, including:
- Penalties: The DOR can assess penalties for late payments, underpayments, bounced checks, information errors, and other issues. Some of these penalties are assessed multiple times until you address the mistake, and can also incur interest.
- Audits: Audits can be conducted for several reasons, and they don’t mean the DOR thinks you did something wrong. However, if there are issues in your tax information, it can lead to penalties, increased tax payments, and other potential disputes.
- Liens, levies, and garnishment: Owing a significant tax debt can lead to collection actions. The DOR may put a lien on your property, seize your bank account funds in a bank levy, or take a portion of your wages in a garnishment.
- Criminal charges: You could face tax evasion or tax fraud charges in severe cases where the Florida DOR believes you are avoiding paying your taxes on purpose or believes you are lying on your tax forms to avoid paying.
What Are Your Options for Resolving These Disputes?
There are several methods to resolve these disputes with the Florida DOR, including:
- Tax preparation: By working with a professional on preparing your taxes, you can avoid mistakes and errors before they happen.
- File past returns: Many debt resolutions begin with filing your past-due tax returns.
- Penalty abatement: When your penalties are incurred by issues outside of your control, you might be able to have them waived.
- Appeals: If an assessed penalty or the outcome of an audit is incorrect, you could appeal the decision.
- Audit defense: A professional can help you prepare for an audit, preemptively address any discrepancies, and protect your rights during the process.
- Payment plan: If you can’t pay your entire tax debt at once, you may be able to negotiate a payment plan that gives you longer to pay the full debt.
- Debt settlement: There are options to resolve a debt that you can’t repay, including an offer in compromise or other negotiations of the debt.
- Exemptions: You could avoid collection actions like wage garnishment through the state’s head of household exemption.
- Legal defense: If you are under investigation by the Florida DOR or are facing criminal charges, it is crucial that you get an attorney who understands tax laws and can defend your rights.
It is essential that you have a state tax attorney to help you resolve your disputes with the Florida DOR. An attorney can assess what options for debt resolution you qualify for and which are most useful for you. They can represent your interests directly with the DOR and make the entire process less stressful for you.
FAQs About Florida State Tax Disputes
What Is the Ideal Way to Resolve Tax Issues?
The ideal way to resolve tax issues will depend on your unique circumstances. If you owe significant tax debt, there may be options to reduce your debt or pause collection and give you time to repay it. If you went through an audit and the audit uncovered discrepancies, you could resolve the issue by paying the new amount or appealing the decision if you believe it is wrong. Working with an attorney helps you find the ideal resolution.
At What Age Do Floridians Stop Paying Property Taxes?
Generally, most Floridians do not stop paying property taxes at a certain age, although there are benefits available to those 65 and older that can reduce property tax amounts. These benefits allow you a homestead exemption of a certain value. The value of these benefits relies on factors like whether your jurisdiction has adopted the benefit, whether you own property, if you have income under a certain amount, if you are a disabled veteran, and other factors.
Do You Need to Hire a State Taxes Lawyer in Florida?
It’s helpful to hire a state taxes lawyer in Florida for many reasons. A lawyer can help you prepare taxes if you have complex financial circumstances, and can help you address disputes. This can include issues like penalties, audits, and investigations by the Florida DOR. The support of an attorney helps you understand your options for resolving the issue and can potentially save you a lot of time, stress, and money.
What Is Florida’s Head of Household Exemption?
Florida’s head of household exemption is a form of relief you can apply for that could limit what can be garnished from your income for state tax debt. You may qualify if you provide over half of the economic support for a child or dependent who lives in your home. All your income after required deductions that equals $750 or less cannot be garnished. The income higher than $750 can only be garnished if you agree to garnishment in writing.
State Taxes Attorney in Florida
At TaxSmith, LLC, we have years of tax code experience on the state and federal levels. We can help you prevent disputes by filing your taxes properly and help you address existing disputes, like tax debts or audits. When the Florida DOR contacts you with a penalty you think isn’t fair or begins an investigation, our firm can protect your rights.
There are Florida DOR Taxpayer Service Centers throughout the state, including locations in Sarasota, Jacksonville, and Pensacola. Our team can represent you in negotiations or disputes at these locations when needed.
We know that taxes can be stressful. If you are facing issues after this tax year, reach out to TaxSmith, LLC, today and let us give you the support and guidance you need.
