35 Miss. Admin. Code Pt. IV, Subpt. 1, Ch. 07 — Sales and Use Tax - Returns, Amended Returns, Credits and Refunds

100 General
101 Miss. Code Ann. Sections 27-65-33 and 27-67-17 require taxpayers to file a return on the
twentieth day of each month with the amount of tax due by such taxpayer for the
preceding calendar month. The Commissioner of Revenue may permit filing periods of a
different duration.
102 All returns must be sworn to by the taxpayer to be a true, correct and complete return as
required by Miss. Code Ann. Section 27-65-33(3).
103 If the taxpayer fails to timely file a return, the Commissioner shall issue an assessment
estimating the amount of tax due as required under Miss. Code Ann. Section 27-65-35.
104 (Reserved)
200 Requesting an Examination of a Return or Returns
201 If a taxpayer determines that the amount of tax due on a previously filed return is
incorrect, the taxpayer may request an examination of such by filing an amended return.
202 Amended returns must be sworn to by the taxpayer to be a true, correct and complete
return as required by Miss. Code Ann. Section 27 -65-33(3). Single adjustment or
transaction requests will not be granted. The taxpayer must attest to the accuracy of the
entire tax amount for the period. An adjustment to a customer's invoice reported on a
prior period within statute can be included in the period the adjustment was made.
203 Miss. Code Ann. Section 27 -65-42 provides thirty-six (36) months for the Commissioner
to determine and assess the amount of taxes due on any return which has been filed. Any
amended return which is filed is also subject to audit and assessment in the same manner.
204 Amended returns resulting in an increase in the taxpayer's liability will result in the loss
of the discount previously allowed under Miss. Code Ann. Section 27 -65-33. The
additional amount due will be subject to applicable penalty and interest.
205 (Reserved)
300 Authorized Tax Credits or Refunds
301 Tax Credits or Refunds will only be granted to the taxpayer having paid the tax to the
State of Mississippi.
302 Tax collected by a vendor cannot be refunded by the Department directly to the customer
of the vendor. Retail customers believing they were charged the incorrect tax should
contact the vendor to pursue any available refund.
303 If the overpayment can be used within a twelve (12) month period, the Department will
allow a credit to be used against the account for future periods as authorized in Miss.
Code Ann. Section 27 -65-53. Refund claims for an overpayment that cannot be used
within a twelve (12) month period will be granted. The determination as to whether the
credit can be used within a twelve (12) month period will be based on the amount of tax
paid on the account within the twelve (12) months preceding the date the amended return
reflecting the claim for overpayment received.
304 If the taxpayer wants a refund in lieu of a credit on the account, the taxpayer should send
a written request that states, in detail, the basis for the refund request after filing amended
returns.
305 The Department, at its discretion, may still issue a refund as requested in the taxpayer's
claim under extenuating circumstances when the credit of the overpayment can be used
within a twelve (12) month period. The determination to not issue a refund on an account
where a credit can be used within a twelve (12) month period is not subject to appeal
under Miss. Code Ann. Section 27 -77-5 so long as the credit was issued in the amount
requested.
306 (Reserved)
Chapter 08 - Liability When Selling a Business and Transfer of Assessments
100 For purposes of this chapter, the term, "person", is defined in Miss. Code Ann. Section
27-65-3(c). Note that the definition of a "person" includes a spouse when joint benefits
are derived from the operation of the business.
101 A lien is attached to any property of a person having a sales tax liability who closes or
sells a business, which includes selling off the inventory of the business. A return is
required to be filed within ten (10) days after the date the business is closed, or sold, or
the inventory is sold and any sales tax liability due must be paid.
102 A purchaser of a business is required to withhold an amount not to exceed the purchase
price assuming the purchase is at arm's length. If the purchase is not an arm's length
transaction, then the amount withheld should not be below the fair market value of the
business. The amount withheld is used to cover any tax liability due in the event the seller
is unable to produce a tax clearance letter from the Department showing the liability has
been paid. If the purchaser fails to withhold this amount and the liability due is unpaid
after the ten (10) days allowed, the total tax liability becomes the liability of both the
purchaser and the seller. The property sold to the purchaser will be proceeded against by
the Commissioner.
103 Persons owning stock of ten percent (10%) or more of a total corporation or interest of
ten percent (10%) or more in a limited liability company (LLC) with thirty -five (35) or
fewer owners, and exercising responsibility for fiscal management at the time that the tax
liability is accrued are liable for the taxes due.
104 Exercising responsibility for fiscal management includes, but is not limited to, any one of
the following activities:

# 1.

A significant involvement in the day-to-day management of the business;

# 2.

the authority to sign business checks or tax returns;

# 3.

the authority to direct payment of business funds to creditors;

# 4.

the authority to pledge business assets as collateral for loans, advances, or lines of
credit for the business;

# 5.

the authority to bind the business to contracts;

# 6.

the authority to hire or fire employees who are authorized to perform any act
described in three (3) through five (5) of this paragraph;

# 7.

acting as a high ranking officer of the corporation or LLC including, but not limited
to, President, Vice-President, Chief Executive Officer, Chief Financial Officer, Chief
Operating Officer, Chairman, Vice -Chairman, Director, Controller, Secretary and/or
Treasurer;

# 8.

ownership of more than fifty percent (50%) interest in the corporation or LLC unless
an operating agreement exists at the time the tax liability is accrued specifying that
the taxpayer is not responsible for fiscal management; or

# 9.

participating in decisions regarding the purchase or sale of the business or the
authority to participate in decisions regarding the purchase or sale of the business.
105 The Department must transfer the assessment from the corporation or LLC to the person
exercising fiscal management within thirty -six (36) months of when the liability of the
corporation or LLC becomes final. A notice will be issued to the transferee, and once
received the transferee will have sixty (60) days in which to appeal the transfer of
assessment. The transfer is appealable on the issue of the ownership interest and fiscal
management requirements only.
106 Bankruptcy of the transferee does not prevent the Department from transferring a
liability.
107 (Reserved)
35.IV.1.08 effective November 11, 2017.
Sub Part 02 Gross Income and Gross Proceeds of Sales