Section 102 Failure to File Timely Sales and Use Tax Returns

• Library: Tax Law 2009

Section 144.250.1, RSMo Supp. 2007, of the Sales Tax Law, §§ 144.010–144.525, RSMo 2000 and Supp. 2007, and § 144.665.1, RSMo 2000, of the Compensating Use Tax Law, §§ 144.600–144.761, RSMo 2000 and Supp. 2007, prescribe an ad valorem (5% per month or a fraction thereof up to a maximum of 25%) penalty when a required return is not timely filed by its “due date” (including any extensions). Rembrandt Rest., Inc. v. Dir. of Revenue, No. 94-000523RV, 1995 WL 17013761 (Mo. Admin. Hearing Comm’n, Feb. 14, 1995); Hancock v. Dir. of Revenue, No. 02-1501 RV, 2004 WL 3133228
(Mo. Admin. Hearing Comm’n, Nov. 10, 2004) (penalty and interest accrue on felony unpaid tax until paid). The applicable percentage is multiplied by the “amount of tax required to be shown on the return,” reduced by the amount of tax paid on or before the due date for filing the return. The penalty applies in...