For Immediate Release
July 5, 2002
MISSOURI ABATEMENT OF TAX OBLIGATIONS OFFERED
Effective July 1, 2002, the Missouri Department of Revenue
may abate all or part of Missouri sales and use tax liabilities and related
penalties and interest if a Taxpayer was reasonably diligent in determining
whether the amounts were owed, or reasonably believed that the transactions
were not subject to tax and that the disputed amounts were not owed.
The Department may also agree to compromise any tax, interest, penalties,
or additions to tax if a Taxpayer does not have the ability to pay the
amount assessed or collection of the tax would result in severe economic
hardship to the Taxpayer. Failure to pay the taxes must be a result of
circumstances beyond the reasonable control of the Taxpayer and not a
result of negligence on the part of the Taxpayer.
To qualify for either an abatement or compromise of taxes, a Taxpayer
must agree to pay its own attorney’s fees and may not contest the
amount of the liability to be abated or compromised. In turn, the state
will be allowed to keep all payments and other credits applied to the
full liability and any amounts due the Taxpayer as a result of tax overpayments
for periods ending before or as of the end of the calendar year in which
the offer is accepted.
The statute of limitations applicable to the compromised tax liability
is tolled for a period beginning on the date of the compromise and ending
one (1) year after the last payment is due pursuant to the formal agreement
entered into by the Taxpayer and the Director of Revenue.
If you would like additional information or have any questions, please
contact J. Lynne Fontana, Regional Vice President - Sales & Use Tax
Group at (281) 578-3700. E-mail lfontana@thesaltgroup.com
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