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Our bookkeepers failed to pay use tax or sales tax on items purchased. Is there a statute of limitations on the time for collection?

Full Question: Our bookkeepers failed to pay use tax or sales tax on the games when they were purchased. How many years can the State go back? Is there a statute of limitations on the time for collection?

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Answer:

Diane Yetter photoThe statute of limitations for the collection of sales tax in Mississippi is three years from the date the tax return was filed. If a false or fraudulent return has been filed with the intent to evade tax or if no return has been filed, the amount of tax due can be assessed and collected or proceedings for collection of the tax may begin at any time after the tax is due. If an examination of a taxpayer's records to verify returns has been initiated and the taxpayer is notified thereof within the thirty-six month examination period, the determination of the correct tax liability may be made after the expiration of the thirty-six-month examination period, provided that the tax determination is made with reasonable promptness and diligence. If you have determined that you have exposure as you have not been registered with the Mississippi Department of Revenue, there are options for getting into compliance. You should consult with a sales tax advisor who can assist you with the evaluation of your options. We can provide this assistance should you require it.

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