Missouri Sales Tax Nonpayment Risk Checklist
Sales tax nonpayment in Missouri occurs when a business or seller fails to pay the state the sales tax collected from customers. This happens during the filing and payment cycle, which is separate from federal income tax.
Missouri requires sellers to collect sales tax from buyers and then send the collected amounts to the state on a regular schedule. Filing frequencies include monthly, quarterly, or annual schedules depending on sales volume.
When tax payments are not made, the Missouri Department of Revenue begins enforcement procedures that can escalate quickly. Ignoring nonpayment notices can result in penalties, interest charges, liens on business assets, collection actions, and potential criminal referral.
What This Issue Means
Sales tax nonpayment means the state has determined that you collected sales tax from customers but did not send the collected amounts to Missouri by the due date on your tax return or by a stated deadline on a notice. This is a collection and compliance issue, not a question about whether you owe sales tax. The state treats this as an unpaid tax liability that must be resolved through payment, a formal agreement, or an administrative process.
Why the State Issued This or Requires This
Missouri law requires all sellers to collect and remit sales tax. Nonpayment notices are issued by the Missouri Department of Revenue when its systems show that a filed return indicates a tax due amount that has not been paid by the due date, or when a tax return was not filed, and payment was not received.
This is a standard administrative trigger in the state’s collection process. Enforcement of payment and fair compliance across all taxpayers remains the state’s primary goal.
What Happens If This Is Ignored
If nonpayment is ignored, the Missouri Department of Revenue escalates collection actions.
This may include additional notices, penalties, and interest charges added to the original
amount owed, placement of the debt with a collection agency, and possible liens or levies against bank accounts or business assets.
The state may also revoke your sales tax license, which renders your local business license null and void. In some cases, unpaid sales tax may result in criminal referral for willful attempts to evade or defeat the tax. Without payment or contact with the state, the situation becomes more difficult to resolve.
What This Does NOT Mean
Nonpayment notices do not mean you are criminally charged or that criminal proceedings have started unless a separate notice explicitly states this. Receiving a notice does not automatically mean your business license will be canceled immediately or that liens have been filed yet.
A nonpayment situation also does not mean the state will not work with you on a payment plan or other resolution options. Administrative processes remain available to address unpaid taxes.
Checklist: What to Do After Receiving This or Identifying
This Issue
Follow these steps in order
1. Locate any notices from the Missouri Department of Revenue related to unpaid sales tax.
2. Write down the specific information from the notice, including tax period, amount owed, notice date, any deadline mentioned, and contact information listed.
3. Review your sales tax return for that period and confirm whether a tax return was filed and whether the payment shown on the return was actually sent to the state.
4. If the tax return was not filed, gather all sales records for the period in question and determine what your actual sales tax liability should have been for that time period.
5. Contact the Missouri Department of Revenue directly using the phone number or mailing address on the notice.
6. If you cannot pay in full immediately, ask about payment plan options and explain your current financial situation, as the interest rate continues to apply during installment agreements.
7. If errors exist, provide documentation to the state, such as copies of filed returns, payment confirmations, or bank records showing tax payments were sent.
8. If you believe the assessment is incorrect or that you do not owe the amount stated, request a meeting or written explanation and ask for clarity on how the amount was calculated, or consider filing an amended return if your original tax return contained errors.
9. Do not ignore follow-up notices or deadlines, and treat any deadline for payment or response seriously.
10. If you have a tax professional or accountant, involve them immediately so they can communicate with the state on your behalf.
What Happens After This Is Completed
After you contact the state or submit payment, the Missouri Department of Revenue processes your response according to its procedures. Paying in full results in the state applying the payment to your account and closing the nonpayment notice.
Arranging a payment plan means the state issues an agreement and expects tax payments on the stated schedule, and interest continues to accrue on the unpaid balance at the current interest rate set annually. Disputing the amount may lead the state to conduct a review or request additional documentation. You should receive written confirmation of whatever action the state takes.
Common Mistakes to Avoid
- Do not ignore notices or assume they will go away, as nonpayment issues do not resolve
without action.
- Do not miss payment plan deadlines if you have arranged one, because missing
payments under an agreement results in acceleration of the entire remaining balance.
- Do not send payments without clearly identifying which tax period or account they apply
to, as the state may not apply the payment correctly without proper identification.
- Do not wait for a second or third notice before responding, since each notice includes a
deadline, and responding quickly can prevent escalation.
- Do not throw away documentation, and keep copies of all notices, filed returns, payment
records, and any written correspondence with the state.
Frequently Asked Questions
Does a nonpayment notice mean I will lose my business license?
Missouri Revised Statutes allow the sales tax license to be revoked after ten days’ notice if the licensee is in default for a period of sixty days in payment of sales tax. Addressing the issue promptly reduces this risk significantly.
If I set up a payment plan, will penalties and interest stop?
Interest continues to accrue on the unpaid balance even during a payment plan. The Missouri
Department of Revenue explicitly states that installment agreements include the full payment of the tax debt over a period of time, plus interest at the applicable interest rate.
What if the notice is for a period I was not in business?
If the tax period predates your business operation, you can explain this to the state. Provide documentation showing when you opened, such as business registration, lease, or other proof, and the state will determine whether the account assessment is accurate.
What if I paid, but the state says I did not?
Locate your payment confirmation or bank record showing the payment was sent. Contact the state with this documentation, as there may be a processing delay or application error. Do not assume the issue is resolved without written confirmation from the state.
Key Points to Remember
Receiving a sales tax nonpayment notice is stressful, but it is a standard administrative process with clear steps for resolution. Responding promptly, contacting the state directly, and providing accurate information about your sales tax liability and ability to pay remain essential actions.
The Missouri Department of Revenue has procedures for payment plans and dispute resolution, and these options are available to you. Understanding what nonpayment means and what happens next puts you in a position to address the issue before it escalates further.
Facing State Enforcement or Payroll Tax Issues?
If you’ve received a state tax notice and aren’t sure how to respond, we can help you review your options and next steps.
We help with
- 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
20+ years experience • Same-day reviews available
