Missouri DOR Sales Tax Problems
Solutions and Consequences of Non-Payment or Unfiled Returns
Staying compliant with sales tax requirements can be complicated – and small mistakes or missed payments can put your business at risk. The state can even come after your personal assets for unpaid sales tax. Look at common sales tax problems in Missouri and learn how to find help today.
Key takeaways
- The MO DOR assesses penalties and interest for unfiled sales tax returns or late payments.
- If you don't pay or file, the MO DOR will send notices telling you to get into compliance.
- The DOR offers monthly payment plans for taxpayers with delinquent sales tax.
- You cannot settle sales tax for less than owed in Missouri.
- Failure to pay leads to tax liens, garnishments, and revocation of your MO sales tax license.
Delinquent Sales Tax
Businesses fall behind on sales tax payments for many reasons, but here are some of the most common:
- Using collected sales tax for operational expenses – it's easy to spend sales tax when it's mixed into the general fund, especially if you're struggling to cover operational costs. To reduce the temptation to spend these funds, consider putting all collected sales tax into a separate account.
- Not reporting exempt sales – if some of your sales are exempt from sales tax but you report all sales as taxable, then you're overpaying your sales tax liability, and you're also sending the DOR some of your revenue instead of sales tax collected from customers.
- Underreporting sales tax – if you underreport sales tax due to calculation errors, not including local sales tax, or making other mistakes, the DOR may adjust your return, which will lead to a tax assessment plus penalties and interest backdated to the original due date.
- Failing an audit – all Missouri sales tax returns are subject to audit, and if the auditor adjusts your returns, you may incur an unexpected tax liability that you're not ready to pay.
In all cases, if you owe delinquent MO sales tax, you should take steps to pay it as soon as possible. Failure to pay can put your business and your personal assets at risk.
What if You Owe Delinquent Sales Tax in Missouri?
If you don't pay sales tax, you'll face penalties, interest, tax liens, garnishments, and loss of your sales tax license. Here's a look at the details.
The penalties for filing or paying late are:
- Late filing penalty: 5% per month, up to 25% – for example, if you file four months late and owe $10,000, this penalty is $2000 or 20%.
- Late payment penalty: 5%, one-time penalty – for instance, if you pay $10,000 late, the penalty is $500.
- Interest: The interest rate adjusts annually. In 2025, it was 8%, and in 2026, it's 7%.
Tax Liens for Unpaid Sales Tax
If you don't pay your sales tax, the DOR can file a tax lien with the circuit court or the recorder of deeds. The lien attaches to all of your current assets, as well as any assets you obtain in the future. To get the lien removed, you must pay all of the tax debt plus interest and penalties.
At this point, you can still request a payment agreement, but you must be able to pay off the tax debt within 12 months. Once you've completed the payment plan, the DOR will release the lien.
While the lien is in place, you can ask to have it discharged from select property – for instance, if you're selling an asset and the sale only covers the existing loan on the asset, you'll have to ask the state to discharge the lien from that asset so that the sale can move forward. The DOR does not automatically approve these requests. That's why it's critical to work with a licensed tax professional experienced with the MO DOR.
Revocation of Sales Tax License
The DOR will revoke your sales tax license if you don't pay your sales tax liability. The Department gives taxpayers several attempts to catch up on their delinquent balances – but once they send the Notice of 10-Day Demand, you only have 10 days to pay in full, set up payments, or file a new return showing that you don't owe the tax due.
If the DOR takes away your sales tax license, you cannot make taxable sales. If you have multiple locations or businesses, you will lose your sales tax permit at all of them. The penalty for making sales without a sales tax permit is $500 for the first day and $100 for each subsequent day, up to $10,000.
How to Get Back Your Sales Tax Permit After Revocation
Lost your Missouri sales tax license for unpaid taxes? Here's what you can do to get it back:
- File all unfiled sales tax returns, including the return for the latest sales period.
- Pay in full or set up a payment agreement; the DOR may require a 25% down payment.
- File Form 2643A (Missouri Tax Registration Application)
- Get a Statement of No Tax Due from the DOR.
- Show municipal or county governments the No Tax Due statement so that you can get back local business permits.
Set Up Payments on Delinquent Sales Tax
If you can't pay sales tax in full, you may be able to qualify for a payment plan. You can apply online on the DOR website or by working with a tax professional. You may be required to submit financial information if you aren't able to pay off the balance within a certain time frame or if you owe over a certain threshold.
Try to be proactive when setting up a payment plan – the Department is more likely to work with you if you reach out as soon as possible. If you wait until a lien has been assessed against you, you'll have to make a 25% down payment, and you'll only get up to 12 months to pay off the balance.
While you're on a payment plan, the DOR will intercept all state and IRS tax refunds and apply them to your tax debt. Missing a payment or incurring new sales tax debt can put your payment plan into default.
MO DOR Collection Notices for Sales Tax Problems
If you don't pay or file your sales tax returns, the DOR may send you several notices, including notices about taking away your sales tax permit.
- Non-filer notice – The Department wants you to file your tax return, and if you don't, they will revoke your sales tax license. The state will also estimate the tax owed, add on interest and penalties, and send you a Notice of Deficiency.
- Balance due notice – The Department didn't receive your tax payment after you filed your return. You should pay in full or try to set up payment arrangements. If you don't, the state will issue an Assessment of Unpaid Tax, pursue involuntary collections, and potentially revoke your sales tax permit.
- Adjustment Notice – The DOR adjusted the tax due on a return you filed. You may have made a math error, filed a return with a negative balance due (for example, due to not having sales but accepting returns during the filing period), only applied state and not local sales tax, or made other mistakes. If you don't pay in full by the deadline on the notice, the DOR will add interest and penalties, pursue collection actions, and potentially revoke your sales tax license.
- Assessment of Unpaid Tax – If you don't respond to the non-filer, balance due, or adjustment of tax notices, the MO DOR will send an Assessment of Unpaid Tax. You have 60 days to dispute the tax due or pay it. If you don't, the state will file a lien against your personal assets, revoke your sales tax license, add interest and penalties to your account, and potentially pursue involuntary collections.
- Notice of 10-Day Demand – This notice means the Department is going to revoke your sales tax license in 10 days if you don't pay the tax due. At this point, you may file an amended Form 53-1 if you disagree with the adjustment to taxes made by the Department, but consider talking to a tax professional to ensure you understand the timing requirements and don't risk losing your sales tax license. If you don't take action within 10 days, the state will issue a tax lien, begin garnishing your wages or bank accounts, and refer your account to a collection agency.
- Notice of Tax Lien – Because you haven't responded to previous notices, the DOR is filing a tax lien against your assets. The lien is public record and will remain in place until you pay off your entire tax debt.
- Revocation of Sales Tax License – If you don't resolve your sales tax debt after the 10-day notice, the DOR will send you this notice to let you know they've revoked your sales tax permit and alerted the city/county to take away your local business licenses. You can no longer legally make sales, but you can start taking steps to reinstate your license.
- Referral to Collection Agency – The DOR is sending your account to a private collection agency. As of 2025, the state works with Penn Credit.
Voluntary Disclosure Program
If you haven't filed sales tax returns in Missouri, consider the state's Voluntary Disclosure Program. To qualify, you must file the disclosure before the Department contacts you about the unfiled return. Apply by filing Form 5310 online or print, fill it out, and mail it to:
Missouri Department of Revenue
Voluntary Disclosure Program
PO Box 295
Jefferson City, Missouri 65105
You have 60 days to submit your sales tax returns if the Department accepts your voluntary disclosure. The department waives penalties for qualifying taxpayers and limits the lookback period to four years. If you've only been required to collect Missouri sales tax for a shorter period of time, the lookback period will be adjusted accordingly. If you've been collecting but not paying Missouri sales tax for longer than four years, the lookback period will stretch through that entire time.
The Department has the right to audit returns filed through the VDP program, and if they discover that you have not reported all of the tax due, they can deny your participation in this program, subjecting you to penalties and possible criminal exposure.
FAQs About Sales Tax Problems in Missouri
What should I do if I'm selected for a sales tax audit?
Make sure you understand which period of time the audit covers. Start gathering your sales records and make sure they match what you reported on the audited returns. Be aware that the auditor may also want to look at bank statements to compare deposits to reported sales. To protect yourself, work with a tax pro experienced with MO sales tax audits.
How do you appeal a sales tax assessment in Missouri?
After receiving a Notice of Tax Assessment, you can request an informal hearing, appeal to the Administrative Hearing Commission (AHC), or pay under protest by paying in full and sending the DOR a written affidavit about why you don't owe the tax. If the DOR agrees with your protest, they'll adjust your balance due. If not, they'll demand payment and pursue collections.
What if you willfully fail to pay sales tax?
Then, the MO DOR may add a 100% civil fraud penalty and refer your case for criminal prosecution. Most taxpayers will never face jail time for unpaid taxes, but if the Department determines that you acted willfully, they may look into fraud charges.
What if you have unfiled sales tax returns in Missouri and other states?
If you're a remote seller who has unfiled tax returns in multiple states, you can get back into compliance through the Multistate Voluntary Disclosure Program.
Can you settle sales tax for less than owed?
No, the Missouri offer in compromise program does not apply to sales tax. However, you can apply for an offer in compromise if you can't afford to pay the Missouri individual income tax or business tax.
Get Help With Missouri Sales Taxes
Are you struggling with sales tax problems in Missouri? Want help catching up on unfiled returns? Dealing with a tax audit? Or setting up payments? Then, use TaxCure to search for a tax pro today – start your search now and use the filters to narrow down your options or explore the links below.