Tax Alert

Mississippi Revises Audit Procedures
(April 19, 2013)

Mississippi Governor Phil Bryant signed House Bill 892 on March 27, 2013. Effective Jan. 1, 2013, the law requires the state’s Department of Revenue to issue assessments to taxpayers within one year after beginning an examination. The provision applies to corporate income, franchise, personal income, and sales tax filings.

The time limitation is not applicable to taxpayers who have agreed to extend the statute of limitations, have not previously filed returns, and have filed fraudulent returns in the past. The limitation also does not apply to periods in which an adjustment to taxable income results from an IRS adjustment.

The law also requires taxpayers to maintain accurate and complete records that are to be available for inspection at a reasonable time and location upon request by the Department of Revenue. The Department of Revenue can assess a taxpayer from any available information if the taxpayer refuses to provide or delays providing documentation that has been properly requested.

In addition, the law allows taxpayers to rely on a previously audited sales tax reporting method and prohibits the Department of Revenue from challenging such a method.


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Gary Peric

Ken Rios

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