Missouri Taxing Information

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Enforced Collection Procedures

The following collection steps are implemented for income/franchise tax debt:

  • Notice of Adjustment - this is the first notice of deficiency.
  • Notice of Deficiency – if you disagree with the tax bill you have 60 days from the date of this notice to request a redetermination from DOR, otherwise the assessment becomes final.
  • 10-Day Demand of Payment – you must arrange to make payment of your liability within 10 days.
  • Notice of Intent to Offset – future state or federal tax refunds may be intercepted and applied to your tax bill.
  • Lien/Administrative Judgment – after an assessment has become final, a lien may be filed and attached to your real or personal property or interest in real or personal property.
  • Deficiency Referred to Prosecuting Attorney or Collection Agency

The following collection steps are implemented for sale and use tax debt:

  • Underpay Notice – this is the first notice of a deficiency.
  • Notice of Assessment – you have 60 days from the date of this notice to request a reassessment or appeal the assessment to the Administrative Hearing Court.
  • Lien/Administrative Judgment – after an assessment has become final, a lien may be filed and attached to personal or real property including cars, trucks, office equipment and more.
  • Default Notice
  • Revocation of Sales Tax License – your sales tax license may be revoked if you fail to remit and pay sales tax or fail to remit income tax withheld on behalf of employees.
  • Bond Forfeited – the bond you posted to receive your sales tax license (generally 3 times the amount of your monthly sales /use tax liability) may be forfeited if you have an outstanding tax liability
  • Deficiency Referred to Prosecuting Attorney or Collection Agency

Installment Agreement

The Missouri Department of Revenue may allow you to pay your tax liability through a monthly payment plan if you are unable to make a full payment for the amount you owe. In general, you will make equal monthly payments based on the amount owed and your ability to pay within a reasonable time frame. Interest and penalties will accumulate on the unpaid portion of your tax bill.

In addition to interest you may also be charged a penalty of 5% of the tax due for not paying on time. For failure to file on time you may also be assessed a penalty of 5% per month, not to exceed 25%. There is a 100% penalty for the willful attempt to evade taxes.

Liability of Responsible Parties

The responsible corporate officer or employee may be held personally liable for corporate tax delinquencies resulting from unpaid sales, use or employer withholding taxes.

Offer in Compromise

If you do not have sufficient funds, or assets to pay your delinquent taxes, you may request an Offer in Compromise (OIC) by submitting a written proposal to the Department of Revenue. If you qualify, an Offer in Compromise will allow you to negotiate a settlement for your tax liability for less than what you owe. An OIC will only be considered when all other options, such as installment agreements, have been explored. All of your tax returns for all types of taxes must be filed before requesting an OIC.

By Missouri tax code, the following three reasons constitute a basis for an Offer in Compromise:

  • Doubt as to liability – a legitimate doubt that the assessed tax is correct.
  • Doubt as to collectability - there is doubt that the taxpayer will ever be able to pay the full amount owed.
  • Effective Tax Administration – where collection of the full liability will result in severe economic hardship for the taxpayer, or the taxpayer's failure to pay the taxes was the result of circumstances beyond their control and was no due to negligence.

Representation

You may choose to have an authorized, qualified person represent you before the Administrative Hearing Commission (Missouri's "tax court"") or during any proceeding involving the Department of Revenue. To authorize representation you must file a written Power of Attorney Form 2827 with the department.

We strive to save our clients money and time, while alleviating stress.  Just as there are many different tax related problems, there are many options for tax resolution.  Call us at 888-589-0955 for a free consultation. In a few minutes we will help you to better assess what options are best for your unique situation.