Mississippi Sales Tax License Revocation / Business
Shutdown Checklist
Mississippi’s Department of Revenue may revoke your sales tax permit if your business stops operating, fails to file required returns, or does not pay owed taxes. A revoked permit means the state has formally ended your authority to collect and remit sales tax, and this action can occur suddenly with serious consequences for reopening or continuing business operations.
Understanding what triggers a revocation and what happens next helps protect your business records and addresses the state’s requirements. Many taxpayers discover a revocation too late to prevent penalties or additional enforcement actions, so acting quickly once you identify or receive notice of a revocation can help prevent further complications.
What This Issue Means
A suspended or revoked sales tax permit is a formal termination of your business's legal right to collect sales tax in Mississippi. The state removes your active permit status from its records, which means you are no longer authorized to operate as a registered sales tax collector.
Revocation differs from voluntary closure or temporary suspension. It indicates non-compliance with state tax law, unpaid obligations, or failure to maintain required filing or payment responsibilities.
Why the State Issued This or Requires This
The Mississippi Department of Revenue revokes sales tax permits under authority granted by
Mississippi Code Section 27-65-27. Businesses that fail to comply with any provisions of the sales tax chapter or fail to satisfy finally determined tax liabilities may face permit revocation by the Commissioner.
Revocation serves as a collection and compliance enforcement tool. Common reasons include failure to file returns, failure to pay taxes, non-response to notices, business closure without notification, and fraudulent activity.
Before revocation becomes final, the Department issues a Notice of Intent. However, the statute authorizes revocation “for cause” when compliance failures occur, granting broad authority to revoke permits when businesses fail their tax obligations.
What Happens If This Is Ignored
Ignoring a sales tax permit revocation triggers several consequences. Penalty and interest accumulate on unpaid tax amounts continuously, and the state may pursue wage garnishment, bank account liens, or property liens to collect unpaid taxes.
The Department of Revenue may refer cases to the Attorney General for civil collection or criminal prosecution in cases involving fraud or willful evasion. Operating without an active sales tax permit constitutes a misdemeanor criminal offense under Mississippi Code Section
27-65-85, with conviction carrying penalties of up to five hundred dollars in fines, imprisonment up to six months in county jail, or both.
What This Does NOT Mean
A revoked sales tax permit does not automatically mean your entire business has been shut down by court order. Some business activity may continue if it does not involve collecting or remitting sales tax, and criminal charges are separate from administrative revocation.
Your business closure is not necessarily permanent. After addressing outstanding tax obligations and demonstrating compliance with state requirements, you may be able to reapply for a permit.
Checklist: What to Do After Receiving Notice or
Discovering a Revocation
Step 1: Verify the Revocation
1. Contact the Mississippi Department of Revenue at (601) 923-7700 or visit their office in
Clinton.
2. Confirm that your sales tax permit has actually been revoked rather than suspended or temporarily deactivated.
3. Request a written explanation of the revocation reason and date.
4. Ask for a summary of any unpaid tax liability, penalties, and interest associated with the revocation.
5. Document the name and title of the person you spoke with and the date of the conversation.
Step 2: Gather All Business and Tax Records
1. Locate all sales tax returns filed in the past three years or the period the state specifies.
2. Collect bank statements showing sales tax deposits or payments to the state.
3. Find business records showing gross receipts, sales by category, and any use tax purchases.
4. Gather copies of any notices, letters, or emails from the Mississippi Department of
Revenue.
5. Retrieve records of any phone calls, payments, or communications with the state.
Step 3: Determine the Type of Tax Owed
Review the state’s explanation to identify whether the revocation relates to unpaid sales tax collections, unpaid use tax, unpaid penalties or interest, or failure to file returns. Ask the
Department of Revenue for an itemized account statement showing tax period, amount owed per period, penalties applied, interest charged, and any credits or payments already posted.
Step 4: Address Outstanding Tax Obligations
For business tax debts resulting from audits, Mississippi generally requires payment of one-third of the amount owed upfront, with the remaining balance paid in six equal monthly installments.
Contact the Collections Unit to confirm available payment arrangements, and do not assume payment plan terms without receiving specific authorization from the state.
Step 5: Address Unfiled Returns If Applicable
Determine which tax periods lack filed returns if the revocation involved failure to file. Calculate the sales tax liability for each unfiled period using your business records, prepare amended or late returns for all missing periods, and contact the Department of Revenue to learn the proper procedure for filing late returns after a revocation.
Step 6: Respond to All State Correspondence
Review any notices, letters, or forms received from the Mississippi Department of Revenue and note all deadlines mentioned in the correspondence. Respond in writing with copies of documentation, and keep records of all communications sent to the state, including dates and delivery method.
Step 7: Understand Your Appeal Rights
You have 30 days from the mailing date of a Notice of Intent to file a written request with the
Board of Review for a hearing. Failure to appeal within this 30-day period means you have waived your hearing opportunity, and the Department's action takes effect without further review, becoming final and not subject to any further review by the Board of Tax Appeals or a court.
- State enforcement actions and notices
- Payroll tax debt review and resolution
- Penalty and interest reduction options
- Payment plans and compliance solutions
- Representation before state tax agencies
Step 8: Request Permit Restoration If Applicable
After addressing outstanding taxes and returns, contact the Department of Revenue to learn whether your permit can be restored. Ask whether a formal application is required or whether restoration occurs automatically once compliance is achieved, and get the specific steps in writing if possible.
What Happens After This Is Completed
Once you address the underlying non-compliance, the Mississippi Department of Revenue reviews your account. Processing timelines vary depending on account complexity and
Department workload, so confirm with the Department that your permit is active before resuming sales tax collection.
Common Mistakes to Avoid
Do not ignore notices from the state or continue non-response patterns. File returns even after revocation to address unfiled return requirements, and provide complete and clear documentation to the state to avoid resolution delays.
Operating without a valid permit constitutes a criminal misdemeanor under Mississippi law. Keep records of all calls, emails, payments, and documents sent to the state, and remember that missing even one payment on a payment arrangement can result in cancellation.
Frequently Asked Questions
How long does it take to restore a revoked permit?
The Mississippi Department of Revenue does not publicly specify reinstatement timeframes.
Processing times vary based on account complexity and how quickly you address outstanding obligations, so contact the Department at (601) 923-7700 to get an estimate specific to your situation.
Will the state accept a payment plan if I owe back taxes?
Mississippi offers structured payment plans for business tax debts from audits. You generally must pay one-third of the amount owed upfront and pay the remainder in six equal monthly installments, with any agreement made followed precisely to avoid cancellation.
What if I believe the revocation was made in error?
Contact the Mississippi Department of Revenue immediately and request a detailed explanation while providing documentation supporting your position. If you believe the state made a factual error, you have 30 days from the Notice of Intent mailing date to file a written appeal with the
Board of Review.
Do penalties and interest continue to accumulate after revocation?
Penalties and interest typically continue to accrue on unpaid tax amounts until the full liability is satisfied. Contact the Department of Revenue to confirm whether and when accrual stops.
What is the statute of limitations on revoked sales tax accounts?
Mississippi Code Section 27-65-42 establishes a 36-month statute of limitations for tax assessment from the date the return was filed or due, whichever is later. This limitation does not apply when no return is filed or a fraudulent return is filed.
Key Takeaways and Compliance Actions
A revoked sales tax permit is a serious compliance matter that requires immediate action.
Understanding what triggered the revocation and taking documented steps to address the underlying issue gives you the best opportunity to restore your permit and clear your account,
so gather your records, contact the state at (601) 923-7700, and address unpaid taxes or unfiled returns as soon as possible.
Facing State Enforcement or Payroll Tax Issues?
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