Mississippi – Compliance Enforcement and Regulations Updated

SALT Report 1541 – The Mississippi State Legislature recently enacted legislation that revises provisions regarding the enforcement and regulation of state tax laws and documentation requirements.
Sales Tax Penalties

If any part of an under reported or late sales or use tax return or payment is due to negligence or a failure to comply with tax laws or regulations and is without intent to defraud, the state may add 10% to the total amount of deficiency or delinquency plus interest on the amount of tax due at the rate of 1% as damages.  Previously, 10% was added for the first offense, 15% for the second offense, 25% for the third offense, and 50% for any subsequent offense.

However, if failure to file a return or to remit tax was the result of fraud or the intent to evade making payment, the taxpayer, in addition to the criminal penalty provided in Section 27-7-347, will be liable for an additional 50% of the tax due plus interest at the rate of 1% per month on the amount not paid.

Department of Revenue Documents

The Department is now authorized to release confidential information and documents to a designated person if there is a properly executed power of attorney or other similar authority in place.  However, the department retains the right to deny the release of information and documents for good cause.

For Further Information:

Mississippi State Legislature – SB 2368