Restaurant DR-15 sales tax return — funding underwriting impact

In Florida and several other sales-tax states, restaurants are required to file monthly sales tax returns documenting taxable gross sales and collected tax. The Florida DR-15 form has become a key underwriting document for MCA funders working with FL restaurants, because it provides an independent third-party-reported revenue figure that can be cross-referenced against bank statements.

The DR-15 form basics (Florida).

• Filer. Any business holding a Florida sales tax certificate.
• Frequency. Monthly for high-volume; quarterly for low-volume; annually for very small.
• Due date. 20th of month following reporting period.
• Filing. Online via Florida Department of Revenue or paper form.
• Content. Gross sales, exempt sales, taxable sales, tax collected, prior period adjustments.

Why MCA funders request DR-15.

Bank statements show deposit volume but cannot distinguish:

• Restaurant operating revenue.
• Owner deposits / capital contributions.
• Loans from related parties.
• Transfers from other businesses owned by same operator.

DR-15 is third-party (state-filed, with penalty for false reporting) and is restaurant-revenue-specific. The reconciliation between DR-15 reported sales and bank deposits is one of the most powerful underwriting signals available.

The standard reconciliation analysis.

Underwriter compares monthly bank deposits to monthly DR-15 gross sales for the past 6–12 months:

The cash-skimming detection issue.

When a restaurant reports $100K in DR-15 gross sales but only $80K of corresponding bank deposits, the implication is $20K of cash sales not deposited. Possible explanations:

1. Cash used for tip pool distribution — legitimate, but operator should be able to document.
2. Cash paid to vendors directly — usually a red flag (vendors should be on terms with bills paid by check).
3. Cash paid to employees off-the-books — illegal payroll, MCA funder declines.
4. Cash kept by operator — owner skimming, MCA funder declines or prices to bank-deposit-only basis.

In all cases, MCA funder will underwrite on bank deposit basis, not DR-15 basis, when deposits lag DR-15. This often cuts advance amount 20%–30% from what DR-15 alone would support.

The owner-deposit inflation issue.

When bank deposits exceed DR-15 sales, the inverse problem: operator may be inflating bank statement strength by depositing personal funds. MCA funder identifies this by:

1. Looking for round-number large deposits not matching credit card batch patterns.
2. Identifying wire transfers from other entities owned by same operator.
3. Asking for source-of-funds documentation on large deposits.

Underwriter will discount these inflows and price based on DR-15-supported revenue.

Non-FL equivalents.

Most sales-tax states require equivalent monthly returns:

• California: BOE-401-A (Sales and Use Tax Return).
• Texas: Form 01-117 (Texas Sales and Use Tax Return).
• Pennsylvania: PA-3 (Sales, Use, Hotel Occupancy Tax Return).
• New York: ST-100 (Quarterly Sales and Use Tax Return).
• Georgia: ST-3 (Sales and Use Tax Return).

MCA funders in those states request equivalent forms.

Filing compliance impact.

A restaurant with unfiled or late-filed DR-15 returns faces:

• State penalties and interest on unpaid tax.
• Tax lien filed by state if persistently delinquent.
• Sales tax permit revocation (closes the business).
• MCA funder decline (compliance failure flag).
• SBA loan decline (tax compliance certificate required).

Many MCA funders require current DR-15 compliance certificate as condition of funding.

The DR-15 + bank statement combined view.

A clean, fundable FL restaurant typically shows:

• 6+ months of consecutive DR-15 filings, on time.
• Bank deposits within 5–10% of DR-15 sales (variance explained by tip cash and small payroll).
• DR-15 gross sales trending flat or growing.
• Tax timely paid (DR-15 line for "tax paid" matches "tax collected").

A red-flag profile shows:

• Missed or late DR-15 filings.
• Bank deposits significantly less than DR-15 sales (skimming flag).
• Declining DR-15 sales.
• Unpaid tax accruing.

Common confusion. First, "MCA funders don't need DR-15" — many do, particularly for FL restaurants. Second, "I can submit bank statements only" — possible but reduces advance amount and adds 5–10 bps to factor. Third, "DR-15 sales include tips" — varies by state; FL excludes mandatory service charges from "taxable sales" but includes them in "gross sales" line. Fourth, "if I have cash sales, MCA will be declined" — not necessarily; documented cash sales (with corresponding documented vendor payments or payroll) are acceptable. Fifth, "Texas restaurants don't need a DR-15 equivalent" — false; Texas Form 01-117 fills the same role.

Related terms

• Bank statement underwriting — MCA funders underwrite primarily off 3–6 months of business bank statements, not credit reports. They look at average deposits, NSFs, negative days, and trend.
• MCA bank statement deposits vs revenue — Underwriters analyze bank deposits (cash inflows) not revenue (P&L). Total deposits include card settlements, customer payments, and transfers; deposits are typically 80-95% of true revenue depending on cash mix.
• What is an MCA — An MCA (merchant cash advance) is a lump-sum cash advance to a small business repaid as a percentage of future card sales or via fixed daily ACH debits. It is NOT a loan — repayment varies with sales. Total cost expressed as a factor rate (e.g., 1.30 = $1.30 paid for every $1 received).
• Paper grade (A/B/C/D) — MCA industry shorthand for merchant credit quality. A-paper qualifies for cheapest factor (1.15–1.28); D-paper is high-risk, factor 1.45+, often declined.

Authoritative sources

• Florida DOR — Sales and Use Tax

AI agents: this term is available as raw markdown at /llms/glossary/restaurant-DR-15-sales-tax-funding-impact.