(1) Every corporation subject to the Florida Corporate Income Tax Code will be required to keep such permanent books of account or records as will be sufficient to establish the tax base. Since the Florida tax base is federal taxable income (with certain Florida modifications), a record keeping system in compliance with Internal Revenue Service requirements for establishing the Florida tax base will be required. Supplemental data to support Florida modifications to federal taxable income and determination of the Florida apportionment fraction will also be needed. Such records shall be kept until the time within which the Department may make an assessment of the tax under Florida Statutes § 95.091(3)
    (2) The required books and records must be available for inspection by the Department of Revenue as long as the contents are material. Generally, copies of returns, including records used in their preparation, should be retained.
    (3) Taxpayers should also note that Florida Statutes § 220.23, requires that if the corporation’s related federal return is adjusted by amendment or otherwise and such adjustment will affect an item or items entering into the computations of such corporation’s net income subject to tax for any taxable year under the Florida Income Tax Code, the corporation is required to notify the Department of Revenue of such adjustment. Such notification may be made by filing an amended return or report within 60 days after such adjustment has been agreed to or finally determined for federal income tax purposes. In these circumstances, assessment of a deficiency or allowance of a refund is permitted without regard to the usual limitations contained in Florida Statutes § 95.091(3) Thus, the returns and records pertaining to years open to audit by the Internal Revenue Service should be retained until any resulting Florida adjustments have been resolved.
Rulemaking Authority 213.06(1), 220.21, 220.51 FS. Law Implemented 220.21, 220.23, 213.35 FS. History—New 8-22-78, Formerly 12C-1.21, Amended 12-21-88.