Sales and Use Tax Collection Procedures

Understanding Your Notice

This notice informs sales and use tax filers that a required return has not been received and must be filed and paid to avoid further collection procedures. You must file even if you had no withholding for the tax period for which you are registered with the Department.

Resolving Your Notice

File And Pay Your Return: If your business is signed up to use the MyTax Missouri portal service, you may file and pay your business taxes online using this link https://mytax.mo.gov. If you are not a registered user, you may set up your portal account using the instructions located at the same web address. If you have no tax to report for the period listed on the notice, you may file a zero return at that same website.

Because you have not filed and paid by the due date, if you have tax to report, interest and additions to tax will be applied to the amount due on your return, once filed. You can calculate your interest and additions at https://mytax.mo.gov/rptp/portal/home/addition-tax-int-calculator.

Once you’ve calculated the amount due, send a check or money order, made payable to the Department of Revenue to the address listed on the notice. You can also pay the amount due online via electronic funds transfer from your bank account. The Department also accepts Mastercard, Visa, Discover, and American Express. Call toll free (888) 296-6509. There will be a convenience fee charged to your account for processing.

If you do not file and pay in full:

• Additions to tax and interest on any balance remaining after the due date will continue to accrue until fully paid;
• The Department will issue a notice of deficiency;
• If you also make retail sales, your sales tax license will be revoked and you will not be able to legally operate your business; and
• Further collection actions will occur.

Understanding Your Notice

You received this notice because:

• The Department received a correctly completed return
• The return indicated you a balance due.
• The Department did not receive a payment in full.

Resolving Your Notice

You may resolve this notice by paying the balance in full. Paying the balance due before the due date will avoid additions and interest charges to your account. You can:

• Pay the amount due.

If your business has signed up to use the MyTax Missouri portal service, you may pay your business taxes online using this link https://mytax.mo.gov/. By utilizing the MyTax Missouri portal, you will have access to manage your business tax account online. You will find Registration instructions and Frequently Asked Questions at https://mytax.mo.gov/.

Self-Service Payment Options:

If you do not pay in full:

• You will be charged additions to tax and interest on any balance remaining after the due date until fully paid;
• The Department will issue an Assessment of Unpaid Tax;
• Further collection actions will occur; and
• If you also make retail sales, your sales tax license may be revoked and you will not be able to legally operate your business.

Understanding Your Notice

This is the initial notice you will receive on an sales and use tax debt and is the best time to resolve it. The Department made changes to your return and is communicating back to you how we believe the return should be calculated.

The following are common reasons for adjustments:

• The return used the wrong sales rate on one or more locations. If you generated your own return, check the rate on the pre-printed return the Department sent you. You can access our website and use our GIS system to verify your rate at mytax.mo.gov. You can also access a complete list of rates in Missouri at /taxation/business/tax-types/sales-use/rate-tables/.
• The return reports sales for a location that was not registered with the Department using incorrect jurisdiction codes. You can access our website and use our GIS system to verify your location, jurisdiction codes, and rate at mytax.mo.gov.
• The return is filed with a late postmark date. The Department uses the postmark date of the return as evidence it was filed late and not your postage meter date.
• The return calculates the totals incorrectly. Check your math to determine if you calculated all parts of the return correctly.
• The return does not include the correct amount of adjustments. The formula to determine the proper amount of tax for each location is Gross Receipts +/- Adjustments = Taxable Sales x Rate = Amount of Tax. Check your records, and then your math, to determine that you calculated each location correctly.
• The return shows negative sales. Often, a negative amount is reported due to a return of merchandise on sales reported in a prior reporting period. In order to correct this, amend the return in which the sales originally occurred and recalculate the current return excluding the negative amount.
• The return does not include all pages. Submit a letter of explanation and a copy of the full return to the Department. Submit it to:

Missouri Department of Revenue
PO Box 840
Jefferson City, MO 65105-0840

• The consumer’s use tax return uses the state rate of 4.225% for a location in a city, county, or district that has imposed a local use tax. Our GIS system will also validate use tax rates. You can access our website and use our GIS system to verify your rate at mytax.mo.gov. You can also access a complete list of rates in Missouri at /taxation/business/tax-types/sales-use/rate-tables/.
• The return has multiple entries for a single location. The Department anticipates that a sales location will be listed once on the return and that all sales made from that location will be reported on that one line for each tax period. Combine your sales into one line and submit your return.

Resolving Your Notice

• Pay the amount due.

If your business has signed up to use the MyTax Missouri portal service, you may pay your business taxes online using this link https://mytax.mo.gov. By utilizing the MyTax Missouri portal, you will have access to manage your business tax account online.  You will find Registration instructions and Frequently Asked Questions at https://mytax.mo.gov/.

Self-Service Payment Options:

• Provide documentation: If you disagree with the adjustment, you may file an amended Form 53-1 showing correct figures for the tax period.

If you do not pay in full:

• You will be charged additions to tax and interest on any balance remaining after the due date of the return until fully paid;
• Further collection actions will occur; and
• If you also make retail sales, your sales tax license may be revoked and you will not be able to legally operate your business.

Understanding Your Notice

If you did not resolve the debt associated with the Adjustment Notice, Non-Filer Notice, or a Balance Due Notice, the Department will issue an assessment to you. This is a statutory notice that assesses the tax, interest, and additions to tax you owe to the Department. If this notice is not resolved, the Department will escalate collection efforts, which may include referrals to collection agencies or prosecuting attorneys.

Resolving Your Notice

Under Missouri law, you have a right to either pay your tax delinquency or dispute the amount owed. It is critical that you take one of the following actions upon receipt of an Assessment of Unpaid Tax:

• Pay the amount due.

If your business has signed up to use the MyTax Missouri portal service, you may pay your business taxes online using this link https://mytax.mo.gov/. By utilizing the MyTax Missouri portal, you will have access to manage your business tax account online. You will find Registration instructions and Frequently Asked Questions at https://mytax.mo.gov/.

Self-Service Payment Options:



Quickest and Easiest Method - Credit Card or Electronic Bank Draft (e-check):
To pay by credit card or electronic bank draft, visit Pay Individual Income Taxes Online, or call (888) 929-0513. A convenience fee will apply for processing.



Check or Money Order:
To pay by check or money order (payable to the Missouri Department of Revenue), send your payment with the detachable portion, below, to the above address. If you pay by check, you authorize the Department to process the check electronically. Any returned check may be processed again electronically until payment clears.



Installment Pay Plan Agreement:
If you cannot pay the full amount immediately, you may qualify for an online installment agreement, plus interest. Installment agreements allow for the full payment of the tax debt over a period of time. To find out more, visit Internet Installment Agreement. You will need your personalized PIN, above.

• Informal Hearing: You may request an informal hearing with the Department to explain the reasons for your disagreement with the assessment. This does not extend the time to appeal. Request an informal review at the address listed at the top of the notice.
• Appeal to the Administrative Hearing Commission: You may ask for a hearing before the Administrative Hearing Commission. You must file a petition with the Commission within 60 days of the date the assessment was mailed or the date it was delivered, whichever date was earlier. Under Section 621.050, RSMo, if any such petition is sent by registered or certified mail, it will be deemed filed on the date it is mailed; if it is sent by any method other than registered or certified mail, it will be deemed filed on the date it is received by the Commission. Your petition should contain a thorough statement of your objections to the assessment and should have a copy of this assessment attached to it. Additional details concerning the filing of a petition may be obtained from the Administrative Hearing Commission, P.O. Box 1557, Jefferson City, Missouri 65102-1557.
• Pay Under Protest. If you do not agree that you owe the amounts shown on this Assessment of Unpaid Sales/Use Tax, you may file a protest with the Department. Under Section 144.700, RSMo, a protest is a written affidavit that explains in detail the reasons you do not owe the amounts shown on the Assessment. By paying under protest, you stop the accrual of additional interest on the amounts paid.

To pay under protest, you must:

• Complete a Protest Payment Affidavit (Form 163 or 163B) Send a check or money order for the amount of the protest payment to the address listed on the affidavit.
• Write on the front of the check or money order that it is a protest payment.

Your protest affidavit must be submitted to the Department of Revenue within 30 days of making the payment under protest

Granting Your Protest: If the Department agrees with your protest, the Department will adjust the amount shown on the Assessment of Unpaid Sales/Use Tax and notify you of the decision in writing.

Denying Your Protest: If the Department does not agree with your protest, the Department will notify you of the Department’s decision in writing. Under Section 144.700, RSMo, you may file an appeal of that decision with the Missouri Administrative Hearing Commission. The Department will provide details of how to appeal its decision in the notification.

If you do not respond to an Assessment of Unpaid Sales/Use Tax with one of the above options within 60 days of the notice date:

• You will no longer have the legal right to appeal;
• All tax, interest, penalties, and additions to tax, if any, will be payable in full;
• A Certificate of Tax Lien may be filed with the Recorder of Deeds against any and all personal and real property owned by you. This will directly impact your credit rating and your ability to buy or sell real estate until this is resolved;
• A Certificate of Tax lien may also be filed with the Clerk of the Circuit Court. This will have the full force and effect of a default judgment; and
• For sales tax, your license will be revoked and you will not be able to legally operate your business.

Understanding Your Notice

This is a warning notice that your Missouri sales tax license will be revoked in 10 days because of unpaid sales tax. If your license is revoked, the city and county in which your business is located are also notified that your local business license is rendered void. A revocation means you must cease making retail sales immediately. Because we will revoke you as the owner, all businesses you operate that make retail sales are revoked and cannot operate. Continued operation will subject you to a penalty of up to $500 for the first day and $100 per day thereafter, not to exceed $10,000. The Notice of 10 Day Demand gives you an opportunity to resolve your account before losing your license.

Resolving Your Notice

• Pay the debt in full.

If your business has signed up to use the MyTax Missouri portal service, you may pay your business taxes online using this link https://mytax.mo.gov/. By utilizing the MyTax Missouri portal, you will have access to manage your business tax account online.  You will find Registration instructions and Frequently Asked Questions at https://mytax.mo.gov/.

Self-Service Payment Options:



Quickest and Easiest Method - Credit Card or Electronic Bank Draft (e-check):
To pay by credit card or electronic bank draft, visit Pay Individual Income Taxes Online, or call (888) 929-0513. A convenience fee will apply for processing.



Check or Money Order:
To pay by check or money order (payable to the Missouri Department of Revenue), send your payment with the detachable portion, below, to the above address. If you pay by check, you authorize the Department to process the check electronically. Any returned check may be processed again electronically until payment clears.



Installment Pay Plan Agreement:
If you cannot pay the full amount immediately, you may qualify for an online installment agreement, plus interest. Installment agreements allow for the full payment of the tax debt over a period of time. To find out more, visit Internet Installment Agreement. You will need your personalized PIN, above.

• Provide documentation: If you disagree with the adjustment, you may file an amended Form 53-1 showing correct figures for the tax period.

If you do not take action, the Department will:

• Issue a lien or administrative judgment;
• Begin the garnishment process; and
• Refer your account to a collection agency.

Understanding Your Notice

Because prior notices have not resolved your delinquency, Missouri statute calls upon the Department to escalate collections. As a result, the Department may file a lien in any case in which we issued an assessment of tax, interest, addition to tax or penalty imposed under Sections 144.010 to 144.1015 RSMo, and that assessment has become final.

A Notice of Tax Lien:

• May be filed for record in the recorder's office of the county in which the person resides or owns property;
• Attaches to real or personal property or interest in real or personal property owned by the person or acquired by the person after the filing of the certificate of lien;
• May be filed with the circuit court which will have the effect of a default judgment. This allows the Department to collect on the judgment through garnishment, executions, and levies.
• Will have negative impact on your credit rating. A lien may be listed on your credit report. Credit bureaus monitor public records for liens. The Department does not report lien information directly to the credit bureau agencies. However, the tax lien and the cancellation of the lien are considered public information once filed with the recorder of deeds or the circuit court. The Department does not govern the credit bureau agency’s policy regarding the length of time or the accuracy of the information they keep on a credit bureau report; and
• Will prevent you from buying or selling real property (and potentially personal property, such as vehicles).

Resolving Your Notice

The Department can only issue a Certificate of Lien Release and Satisfaction if:

• The debt is paid in full; or
• You provide documentation showing you do not owe the debt.
• Paying the Debt in Full: A taxpayer, power of attorney, financial institutions or title company may request for the amount needed to pay the lien off in full by reaching out to collections@dor.mo.gov to request a payoff that includes updated interest. A satisfaction will be issued within 45-60 days of the balance being resolved.
• Submit a proposed installment agreement to pay the full amount within one year if you are unable to pay the full amount at this time. To request an installment agreement, access our website at /taxation/payment-options/. A lien will not be released until the debt is paid in full.

“Partial lien Release: There are situations where the Department’s lien can be released against one particular piece of property for less than full payment of the lien. The Department is not legally required to issue a partial lien release however, some circumstances will be taken into consideration. You must complete the Partial Satisfaction and Discharge of Tax Lien (Form 5615) and send in along with a HUD I statement and the property description. Further documentation may be requested as needed. Based on the information submitted, the Department may require partial payment, full payment or no payment towards the tax lien to issue a partial release.

Understanding Your Notice

This notices serves as official notification that your sales tax license has been revoked. The debt included on this notice covers all delinquencies for all delinquent periods for all businesses you own. The city and county in which your business is located are also notified that your local business license is now rendered void. Upon receipt of this notice, you must cease making retail sales immediately and contact the Department. Because we are revoking you as the owner, all businesses you operate that make retail sales are revoked and cannot operate. Continued operation will subject you to a penalty of up to $500 for the first day and $100 per day thereafter, not to exceed $10,000.

Resolving Your Notice

• File All Returns – If any periods covered by the revocation are the result of non-filed returns, you must file all returns. This includes any period currently due, even if not included in the revocation orders Statement of Delinquent Period.
• Pay the amount due. Send a check or money order, made payable to the Department of Revenue to the address listed on the notice. You can also pay the amount due online via electronic funds transfer from your bank account. The Department also accepts Mastercard, Visa, Discover, and American Express. Call toll free (888) 296-6509. There will be a convenience fee charged to your account for processing. If your business is signed up to use the MyTax Missouri portal service, you may pay your business taxes online using this link https:/mytax.mo.gov. If you are not a registered user, you may set up your portal account using the instructions located at the same web address. You must pay all delinquencies for all delinquent periods for all businesses you own.
• Reinstate Your License(s) – In order to reinstate your license, you must:
  • File all returns up to date.
  • Be paid in full or set up an installment agreement that includes all outstanding debt. Note: A down payment of 25% of the total balance will be requested to start the installment agreement.
  • Complete a Missouri Tax Registration Application, Form 2643A;
  • Obtain a Statement of No Tax Due from the Department to present to cities, counties, and state agencies to address the revocation. They will not reinstate their licenses without a Statement of No Tax Due from the Department.

Understanding Your Notice

Unpaid taxes may be referred to a collection agency or to a local Prosecuting Attorney. In addition to recovering the tax debt, Missouri statutes allow a 100 percent civil penalty and criminal prosecution for willful attempts to evade the tax.

Resolving Your Account

If your business has signed up to use the MyTax Missouri portal service, you may pay your business taxes online using this link https://mytax.mo.gov/. By utilizing the MyTax Missouri portal, you will have access to manage your business tax account online.  You will find Registration instructions and Frequently Asked Questions at https://mytax.mo.gov/.

Self-Service Payment Options:

If you are unable to make full and immediate payment to the Department, you must contact the collection agency to resolve your account. The collection agency serving the Department is Penn Credit.

**The contract for EOS expires 12/31/2022 and is not being renewed.**