Missouri Unfiled Sales Tax Returns Checklist

Missouri Unfiled Sales Tax Returns Checklist

Businesses that collect sales tax from customers must file returns with the Missouri Department of Revenue for each filing period. When a required return is not submitted, the state identifies this gap through business licensing checks, audit procedures, or third-party reporting systems.

Unfiled returns create administrative liability that grows over time and triggers enforcement actions. Taking prompt action when you become aware of unfiled returns allows you to work within the state’s compliance processes rather than face escalated collection measures.

What This Issue Means

An unfiled sales tax return is a monthly or quarterly filing that was due but never submitted to the Missouri Department of Revenue. Sales tax returns report the gross receipts from taxable sales you made during a filing period and the tax you collected from customers.

The state has no record of your sales, your tax liabilities, or whether tax was remitted for that period when a return goes unfiled. Unfiled returns differ from filed returns with unpaid tax because the form itself was never sent to the state.

Why the State Requires This

Missouri requires sales tax returns from all businesses that collect retail sales tax. The state uses these returns to verify that tax was properly collected and remitted to the appropriate jurisdictions. Unfiled returns represent missing data in the state’s tax collection system and prevent proper accounting of tax due.

Routine compliance checks allow the Missouri DOR to discover unfiled returns through business licensing renewals, audit selections, or data matching with other state records. When unfiled returns are found, the Missouri Department of Revenue initiates contact to bring the filing current.

What Happens If This Is Ignored

Continued non-response leads to enforcement actions. The state issues additional notices requesting compliance and may assess penalties, interest, and estimated tax liability based on

available information. Enforcement may eventually include liens, levies, or other collection actions.

Ignoring unfiled returns prevents you from correcting errors, claiming credits, or adjusting liability during the normal filing process. This limits your ability to participate in the state’s standard tax administration and can result in Missouri sales tax license revocation for retail sales businesses.

What This Does NOT Mean

Notification about unfiled returns does not automatically mean the state has assessed penalties or calculated your full tax liability. You have not necessarily lost all rights to amend or explain your tax position.

The filing and assessment process allows opportunities for you to provide documentation and reconcile amounts. An unfiled return notice does not mean your business license will be immediately revoked, though unfiled returns constitute a compliance violation that can affect licensing status over time.

Steps to Address Unfiled Returns

1. Gather documentation showing which periods you did not file and review any state notices or letters received. Check your business records for sales information from those periods and collect prior filed returns if available to establish a pattern.

2. Determine your sales tax obligation by reviewing your business structure and sales during the unfiled periods. Identify whether you made taxable sales requiring sales tax collection and confirm whether you were required to register and file during those periods.

3. Compile sales records, accounting records, invoices, or bank statements from the unfiled periods to establish the sales amounts you need to report. Note what information is available and what is missing if records are incomplete.

4. Calculate the sales tax you collected or should have collected during each unfiled period using your sales records. Apply Missouri sales tax rates to taxable sales and note any exemptions or deductions that applied to your business.

5. Contact the department to discuss your unfiled returns and provide the periods involved.

Ask what documents they need from you, what the filing process requires, and request clarification on any assessment, penalties, or interest they may have calculated.

6. Request an itemized statement from the Missouri DOR showing each unfiled period, the reported sales, the tax assessed, and any penalties or interest applied. Understanding what the state calculated helps you verify accuracy and identify discrepancies.

7. Prepare sales and use tax returns for each unfiled period based on your sales records and the state’s requirements. Use Missouri's standard sales and use tax return form and report actual sales from your records. Calculate tax based on those sales using the correct tax rates for each period.

8. Submit returns with payment if you can pay the tax shown on those returns. If you cannot pay the full amount, ask about payment plan options or other arrangements available through the department.

9. Retain copies of everything you file, including the returns, payment confirmations, correspondence with the state, and receipts. Document the date and method you used to submit materials to the state.

10. Monitor for follow-up correspondence from the department. The state will send acknowledgment of your filing, calculation of any remaining liability, or notice of penalties and interest applied.

11. Address any assessment disagreements by contacting the Missouri DOR if the state calculated tax or penalties differently than you expected. Provide documentation of your actual sales and tax collected, and ask what calculation method they used.

What Happens After Filing

The department will process your returns into the state's tax system and send a written acknowledgment or a summary showing what was filed and any amounts still due. Any penalties or interest assessed before your filing will be applied to your account by the state.

You may receive notice of the total liability, including the base tax, penalties, and interest, with information about whether this is due immediately or whether a payment arrangement applies.

Common Mistakes to Avoid

• Missing state deadlines results in additional penalties or enforcement action when the

Missouri DOR specifies a deadline for filing unfiled returns or responding to notices.

• Filing incomplete or inaccurate returns may result in rejection or resubmission

requirements, so complete all required fields and verify tax calculations before submitting.

• The state may send multiple notices about unfiled returns, and responding to all

correspondence from the department prevents escalation.

• Supporting the sales amounts you report on returns requires sales records, invoices, or

accounting statements that show the basis for your reported figures.

• The state may calculate estimated tax based on available information if your actual

records are unavailable, so verify state estimates against your own records and correct them if necessary.

• Some penalties may be eligible for abatement or waiver under state policy, so contact

the department to ask whether penalty relief is available if you were unable to file due to circumstances beyond your control.

Statute of Limitations and Legal Deadlines

Missouri’s statute of limitations for assessing sales tax is three years from the return due date or filing date. There is no limitation period when there is a fraudulent return, neglect, or refusal to make a return.

In such cases, the director can assess at any time. The state’s published guidance does not specify how long unfiled returns remain subject to pursuit beyond these periods.

Failure to file penalties apply to unfiled returns at a rate of five percent of the tax amount due for each month the return is late. This penalty increases each month and reaches a maximum of twenty-five percent of the unpaid balance.

Interest charges also apply to unpaid tax amounts and accrue at rates set by the state. For

2025, the interest rate on deficiency balances is eight percent, and for 2026, the rate is seven percent.

You may appeal an assessment to the Missouri Administrative Hearing Commission within sixty days of the date the assessment was mailed or delivered. Filing a petition within this period preserves your right to contest the assessment through the administrative hearing process.

Key Actions to Take

Unfiled sales tax returns create administrative liability that the state addresses systematically.

Gathering your sales records, contacting the department, and filing the unfiled returns are concrete actions within your control.

Staying organized, keeping documentation, and responding to all state correspondence allows you to move through this situation with clarity. Acting promptly when you become aware of unfiled returns protects your business and limits additional penalties and interest.

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.