Missouri Sales Tax Enforcement Actions Checklist
Missouri’s Department of Revenue pursues enforcement actions when a business has not paid sales tax owed, filed required returns, or maintained proper records. These enforcement actions are formal steps the state takes to collect unpaid taxes and bring accounts into compliance.
Understanding what type of enforcement action you have received helps you respond appropriately and protects your business from escalating consequences. Enforcement actions vary in severity and stage. Some are initial notices requesting payment or filing.
Others are more serious, including wage garnishment, asset seizure, or business closure proceedings. Ignoring any enforcement action increases penalties, interest, and the likelihood of additional collection efforts.
What This Issue Means
A Missouri sales tax enforcement notice is a formal communication that the state has determined your business owes unpaid sales tax and is taking steps to collect it. Such actions may require you to pay immediately, file missing returns, provide records, or respond to a specific deadline.
Enforcement actions are issued after the state has determined there is a tax liability through audit, payment records, or reporting discrepancies. Each specific type of enforcement action indicates what stage of collection the state is pursuing.
Early notices request payment or filing. If those go unanswered, the state may pursue collection actions such as liens, garnishment, or seizure.
Why the State Issued This or Requires This
The Department of Revenue issues enforcement actions to collect unpaid sales tax and ensure compliance with state tax law. Sales tax enforcement typically begins after the state identifies that a business has failed to pay sales tax owed on goods or services sold.
Such identification may happen through routine audits, reports from customers, examination of business records, or comparison of filing records. Progressively formal notices are issued as needed to collect the tax.
What Happens If This Is Ignored
Ignoring a Missouri sales tax enforcement action results in continued collection efforts and escalating consequences. If you do not respond to an Assessment of Unpaid Sales and Use
Tax within 60 days of the notice date, you will no longer have the legal right to appeal.
All tax, interest, additions to tax, and penalties become payable in full. A Certificate of Tax Lien may be filed with the recorder of deeds against any real property or personal property owned by you.
For sales tax, your license will be revoked, and you will not be able to operate your business legally. The state may file the Certificate of Tax Lien with the circuit court clerk, which has the full force and effect of a default judgment.
Only after obtaining this judgment can the Department of Revenue issue garnishment or levy orders. Additions to tax and interest continue to accrue on the unpaid balance until fully paid.
What This Does NOT Mean
Receiving an enforcement action does not automatically mean your business will close immediately or that all your assets will be seized without warning. Such actions are not final judgments. They are formal notices that the state is pursuing collection and expecting a response.
An enforcement action does not mean the amount owed is automatically correct. You have the right to dispute the amount if you believe it is inaccurate. Most enforcement actions can be resolved through payment, a payment plan, or providing documentation to support your position.
Checklist: Missouri Sales Tax Enforcement Actions
Response Steps
Follow these steps after receiving a sales tax enforcement action from the Department of
Revenue.
- Locate the notice date and any stated deadline for response.
- Identify the specific type of action, such as Non-Filer Notice, Balance Due Notice,
- Write down the tax period covered, the amount owed, and the reason the state provided.
- Note the department contact name, phone number, and address that appear on the
Step 1: Read the Entire Notice Carefully
Adjustment Notice, Assessment of Unpaid Tax, Notice of 10 Day Demand, Notice of Tax
Lien, or Revocation of Sales Tax License. notice.
Step 2: Verify the Accuracy of the Amount Owed
Review your sales and use tax returns filed during the period stated in the notice. Gather sales records, invoices, and payment records for the same period. Check whether the payments shown on the notice match the payments your business made. Identify any discrepancies between what the notice says you owe and your records.
Step 3: Determine Your Response Options
Calculate whether your business can pay the full balance immediately. Proceed with payment if paying in full is possible. Contact the Department of Revenue to request a payment plan if paying in full is not possible.
- The Department of Revenue offers internet installment agreements as a formal program
- You can request installment agreements online through MyTax Missouri.
- Additions to tax and interest typically continue to accrue during a payment plan unless
- Ask what information or documentation is needed to request a plan.
Step 4: Research Payment Plan Options
for taxpayers who cannot pay in full. the state specifically agrees otherwise.
Step 5: Prepare a Written Response
Write a clear, factual letter explaining your position or request. Explain which items or months you believe are incorrect if disputing the amount. Include copies of supporting documents such as returns filed, receipts, and bank statements. State the amount you can pay and the frequency if requesting a payment plan. Keep a copy of your response for your records.
- Determine the deadline stated in the enforcement notice.
- File a petition with the Administrative Hearing Commission within 60 days of the date the
- Mail your written response to the address provided on the notice.
- Send it certified mail with a return receipt requested.
- Do not rely on phone calls alone to dispute an amount or request a plan.
Step 6: Submit Your Response Before the Deadline
assessment was mailed or delivered for an assessment of unpaid tax.
- 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 7: Document All Communications
Keep a record of every phone call, letter, or email regarding this enforcement action. Write down the date, time, and name of any person you speak with. Save copies of all written correspondence sent to and received from the state. This documentation helps if questions arise later about what was addressed.
Frequently Asked Questions
What is the difference between a notice and an enforcement action?
A notice is typically a less formal communication. An enforcement action is a formal legal step with stricter deadlines and more serious consequences if ignored.
Can I dispute a Missouri sales tax enforcement action?
Yes, you may dispute the amount owed or the reason for the enforcement action by providing written documentation and evidence to support your position. Disputes must be submitted before the deadline stated in the notice.
Does the Department of Revenue offer payment plans?
Yes, the Department of Revenue offers internet installment agreements through MyTax
Missouri. Contact the department at the number on your notice to ask about payment plan eligibility and terms.
Will a tax lien appear on my credit report?
A lien may be listed on your credit report. Credit bureaus monitor public records for liens. The
Department of Revenue does not report lien information directly to credit bureau agencies. The tax lien is considered public information once filed with the recorder of deeds or circuit court.
Facing State Enforcement or Payroll Tax Issues?
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