What is a sales tax exemption certificate and how often do I need to renew or update them?
Sales tax exemptions are provided by state law, primarily in Chapter 144 of the Revised Statutes of the State of Missouri, for a variety of items including, but not limited to: component parts, machinery used in the manufacture of products sold at retail, export sales, and resale.
If you need help please call – Cash Tax & Accounting 816-436-8585
Reference Page: http://dor.mo.gov/faq/business/audit.php
Do the auditors use sampling?
Audit sampling generally benefits both the taxpayer and the Department of Revenue by reducing the time necessary to complete audit fieldwork and reducing the taxpayer’s time and effort in retrieving documents for audit purposes.
Some factors that will affect the sampling methodology are: volume of invoices, industry type, size of company, availability of and access to records and cyclical periods for sales or purchases. One of the keys to selecting a representative sample is communication between the auditor and taxpayer.
Why do sales tax auditors examine my federal income tax returns?
A sales tax auditor will examine your federal income tax return to reconcile the gross sales between the federal return, the sales tax return, and the sales recorded in your accounting records. The depreciation schedule is also examined to determine if there were sales and purchases of fixed assets during the audit period.
Who do I call if I have questions or concerns regarding the audit?
You should first discuss audit related concerns and/or questions with your assigned auditor. If questions and/or concerns remain, you may contact your assigned auditor’s supervisor or manager. Phone numbers and e-mail addresses are listed on our contact information page. You may also ask your assigned auditor for this information.
What are my payment options for sales, use, or corporate tax audit liabilities?
If you are in agreement with the determined sales/use or corporate tax liability and desire to pay the agreed-upon amount, make a check payable to the Missouri Department of Revenue and mail the check to the address indicated on your audit related correspondence. Depending on the type and amount of your check payment, your payment may be converted to an electronic image for deposit purposes. You also have the option to pay the audit with an electronic funds transfer. Contact your auditor for details.
If you agree with the determined sales/use tax audit liability, but are unable to pay, you may request an installment agreement. However, such an agreement is administered by the Taxation Division, Collections and Tax Assistance. An audit associated with an installment agreement will need to be assessed prior to Collections and Tax Assistance, administering the agreement. Once the assessment notice is issued, you should contact the Taxation Division, Collections and Tax Assistance, via the following website or call 573-751-7200.
The Department of Revenue typically does not offer installment agreements for corporate tax liabilities.
If you do not agree with the determined sales/use or corporate tax liability, you may choose to not pay the audit or pay the audit under protest. If you choose not to pay, assessment notices will be mailed to your business address. You will be provided 60 days to pay or appeal the assessment. The 60-day time frame is initiated with the date of the assessment notice.
If you choose to pay the audit under protest, the interest will stop accruing on the date of your payment. If the Administrative Hearing Commission or a court of law rules in your favor, you will receive a refund of the amount paid plus any interest earned. Paying the liability under protest has the advantage of stopping the accrual of interest if a decision favorable to the state is determined.
What is the interest rate I will be charged for any taxes I owe? Will I receive interest at the same rate if I am due a refund of tax?
Interest on taxes due is computed from the date the tax is due until the postmark date of the tax payment. Interest shall be allowed and paid on any refund or overpayment at the rate determined by Section 32.068 RSMo. only if the refund is not issued within one hundred twenty days from the date the taxpayer files for a credit or refund and provides accurate and complete documentation to support such claim pursuant to Section 32.069 RSMo. The interest rates, which apply to both taxes due and refunds of sales and use tax and corporate and franchise tax can be found on the Statutory Interest Rate page.
Cash Tax and Accounting