Mississippi Unfiled Sales Tax Returns Checklist
Understanding Unfiled Sales Tax Returns
An unfiled sales tax return means a business registered with the Mississippi Department of
Revenue has not submitted a required sales and use tax return for one or more reporting periods. The return documents gross sales and taxable sales during a specific period and calculates the sales tax owed.
When a return remains unfiled, the state lacks an official record of your sales activity or tax liability for that period. This situation differs from filing a return late with payment, as an unfiled return means the document itself was never submitted to the state.
Filing Requirements and Frequency
Mississippi requires sales tax returns on specific schedules based on your business registration and annual tax payments. Filing frequency follows clear thresholds established by Mississippi
Code Annotated Section 27-65-33.
Businesses with annual total payments less than $600 file annually, while those with annual payments between $600 and $3,599 file quarterly. Monthly filing applies when annual remittance exceeds $3,599.
The Mississippi Department of Revenue explicitly requires registered businesses to file returns even during periods with no taxable sales, known as filing a zero return. Returns must be filed and tax paid by the 20th day following the end of the reporting period to avoid penalties and interest charges.
State Enforcement Actions
The Mississippi Department of Revenue tracks filing patterns through its compliance system and identifies businesses that fail to submit returns by the due date. Initial notices request the unfiled return, and if the situation continues, the state may assess tax liability based on available information.
Penalties and interest accumulate on unpaid tax liabilities according to statutory rates.
Persistent non-filing can result in collection actions, including liens on business assets or personal property, wage garnishment, or referral to enforcement programs.
Penalties and Interest Rates
Mississippi assesses specific penalties for unfiled sales tax returns under state law. The penalty equals $50 or 10% of the tax due, whichever is greater, for failure to file, late filing, or late payment.
Late filing penalties begin 30 days after the due date, and an additional 10% penalty for late payment applies 60 days after the due date or when a warrant for collection issues. Interest on unpaid sales tax accrues at nine-tenths of one percent per month for taxes assessed on or after
January 1, 2015, based on Mississippi Administrative Code provisions.
Steps to Resolve Unfiled Returns
1. Locate Official Notices and Confirm Filing Status
Contact the Mississippi Department of Revenue at (601) 923-7700 to confirm which
periods have unfiled returns. Check your mail for official correspondence from the state and review business records for any notices.
2. Gather Sales Records
Locate sales records, receipts, invoices, or point-of-sale system reports for each unfiled period. Bank statements or accounting records can document sales activity if original records are unavailable.
Identify gross sales amounts and taxable sales amounts for each period, and organize records chronologically by the reporting period covered. Sales documentation must include transaction dates and support all figures reported on returns for the unfiled periods.
3. Determine Filing Method and Forms
Visit the Mississippi Department of Revenue website to identify the correct sales tax return form for your business type. Confirm whether electronic filing is required or paper
filing is permitted, as tax regulations specify different requirements based on business size and the number of rates reported.
4. Calculate Tax Liability
Calculate gross sales for each period using your sales records. Determine which sales were subject to sales tax and which qualified for exemptions. Apply the correct
Mississippi sales tax rate for each period, as rates may have changed over time, and remember that local sales tax rates can vary by jurisdiction. Total tax liability must be calculated separately for each unfiled period, accounting for both the rate applicable at the time and any use tax obligations.
5. Contact the State for Penalty and Interest Calculations
Request the exact amount of interest accrued on unfiled returns from the Mississippi
Department of Revenue. Ask the department to specify which penalties apply and provide written documentation showing the breakdown of tax, interest, and penalties for each period.
6. Prepare and Submit Returns
Complete the sales tax return form for each unfiled period using your sales data. Enter the correct period dates and all required information as specified on the form. Include a cover letter explaining these are late filings and noting the periods they cover.
Keep copies of completed returns before submitting. File electronically through the state's approved system or mail paper returns to the address specified by the department using certified mail with return receipt requested. Electronic filing through the
TAP portal is required if you report more than four rates of tax or have multiple business locations subject to sales tax.
7. Arrange Payment
Determine the total amount owed, including tax, interest, and penalties. Contact the
Mississippi Department of Revenue to confirm the exact payment amount and deadline, as sales tax collection enforcement becomes more aggressive when payments remain outstanding.
8. Verify Completion
After filing, contact the Mississippi Department of Revenue to confirm returns were received and processed. Request written confirmation showing the filing date for each return and verification that payment was applied correctly to your sales tax collection account.
Establishing Future Compliance
Confirm your current filing frequency with the department and establish a system to track future filing deadlines. Maintain organized sales records that simplify return preparation and ensure accurate reporting for future periods.
Common Filing Errors
Missing state correspondence does not eliminate filing requirements or prevent penalties from accumulating. Filing incomplete or inaccurate returns may result in rejection or required corrections.
Paying only the tax amount without including interest and penalties does not resolve the issue.
The filing requirement continues regardless of how late the return becomes, and there is no expiration date.
Retain copies of all filings as documentation if questions arise. Continuing operations without addressing unfiled returns compounds the problem as each missed deadline adds another unfiled period and creates ongoing compliance issues with sales tax collection.
Facing State Enforcement or Payroll Tax Issues?
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