Unfiled Missouri Tax Returns: How to Catch Up and Consequences of Unfiled Returns
Do you have unfiled tax returns in Missouri? If so, you are not alone, but you need to take action. The longer you wait to file your back taxes, the more penalties you'll pay, and you'll also face a greater risk of unwanted collection actions.
To get help now, use TaxCure to find a Missouri-based tax professional. Or keep reading for an overview of what happens if you don't file tax returns in Missouri.
Key takeaways
- If you don't file returns, the MO DOR may estimate your tax liability and start collection actions against you.
- The penalty for unfiled Missouri tax returns is up to 25% of the tax liability, plus late payment penalties and interest.
- The Missouri Voluntary Disclosure Program lets qualifying taxpayers get into compliance without incurring penalties, but you must reach out to the state before the DOR contacts you.
Do I need to file a Missouri tax return?
Filing rules vary based on the type of return you need to file. Businesses and individuals have different requirements, but all taxpayers risk facing penalties and potentially even legal consequences if they don't file tax returns. Here are the filing requirements for various types of tax returns:
- Missouri individual income tax return – if you are required to file an IRS individual income tax return, you must file a Missouri return if you live in the state for the full or partial year or if you have Missouri-source income.
- Missouri corporate income tax return – corporations must file if they're based in Missouri or have a physical presence in the state. Only having Missouri sales does not trigger a corporate filing requirement.
- Sales tax returns – if you're located in Missouri and you sell taxable goods or services, you must register for and pay sales tax. Remote sellers must register and file if they have over $100,000 in Missouri sales over the last 12 months.
- Withholding returns – If you have employees in Missouri, you need to withhold Missouri income taxes from their pay and remit it to the state along with withholding returns. You also need to file unemployment reports and pay unemployment tax to the Division of Employment Security (DES).
Depending on your industry, you may also need to file and pay returns related to marijuana tax, cigarette tax, tire tax, or other industry-specific taxes.
What if I don't file Missouri tax returns?
If you don't file, the state may send you a non-filer notice. This notice gives you a certain amount of time to address your unfiled returns, and if you don't, the state may move forward and use its records to estimate your liability and assess taxes against you.
When that happens, the MO DOR will send you an Assessment of Unpaid Tax or a Notice of Deficiency. This notice explains how much you owe and gives you 60 days to dispute. If you don't respond during that time frame, the state will file a tax lien against you and move forward with collection actions.
If you have a sales tax account with the state, the DOR will revoke your sales tax license for the unfiled returns – in fact, in most cases, you'll lose your sales tax permit faster with unfiled returns than you will if you owe unpaid taxes. The DOR will also notify county and city governments to rescind your local business permits.
Penalties and collection actions for unfiled returns
Once the DOR assesses tax for the periods that you haven't filed, they'll also add penalties and interest to your balance due:
- Missouri DOR failure to file penalty – 5% per month, up to 25%. For instance, if you file three months late, the penalty will be 15% of your balance due. If the DOR reaches out to you five or more months after you miss the filing deadline, the penalty will be maxed out at 25% of your balance due.
- Late payment penalty – whether you file on time or not, if you pay late, there's a one-time penalty of 5%. This will also be added to your balance due when you file or when the state assesses tax against you.
- Interest – interest is back dated to the original due date. The rate adjusts annually. It's 7% as of 2026 and 8% for 2025.
The late payment and filing penalties can stack together, creating a maximum penalty of 30%. When you account for the interest as well, you're looking at a significant increase in your tax liability. Say, for example, that you're a year late – with a 7% interest rate and 30% penalties, you'll owe about 37% on top of your original balance due. Say you owe $20,000 – penalties and interest are likely to be $7400.
What to do if the DOR assesses tax against you
When the DOR assesses tax against you for an unfiled return, they typically give you 60 days to dispute the balance due. At that point, you can file a correct return to show your balance du,e or you can appeal.
For example, say that you didn't file a corporate income tax return, and the DOR uses numbers from your previous year's return to estimate your tax liability. Their assessment notice indicates that you owe $20,000. However, your profits were much lower this year. So, you file a correct return, showing that you only owe $5000. That establishes an accurate tax liability. It also reduces the tax due, which in turn reduces the interest and penalties on your account.
Alternatively, you can appeal. When you appeal, you'll get a chance to explain either why you don't have a filing requirement or why the tax liability the Department is proposing is incorrect. Appeals can be very difficult, and they're always subject to strict deadlines. To protect yourself, you should strongly consider working with a tax professional.
However, if you agree with the tax liability shown due in the Notice of Deficiency or Assessment, you can simply make arrangements to pay it.
How to pay back taxes in Missouri
Whether you filed your back taxes or accepted the DOR's assessment, you need to make a plan to pay your taxes. To minimize penalties and interest, consider paying in full. However, if that's not possible, you may want to apply for:
- MO DOR payment plan – the DOR offers payment plans on all taxes administered by the DOR. You may need to make a down payment or provide financial records to qualify.
- Offer in compromise – the DOR will settle taxes for less than owed if you prove that you can't afford to pay in full or that the liability is incorrect. Typically, the agency only settles individual and corporate income tax. You cannot get settlements for trust fund taxes, such as sales tax and Missouri withholding.
You must file all unfiled returns to qualify for either of these relief options. You can apply on your own, but to improve your chances of acceptance, you may want to work with an experienced Missouri tax pro. Also, consider asking for penalty abatement – if the state approves your request, you can save a lot of money.
Getting back your sales tax license
If you've lost your sales tax license due to unfiled returns, you can apply for reinstatement by doing the following:
- Catch up on unfiled returns
- Pay in full or make payment arrangements
- Apply for a new sales tax permit, using Form 2643A (Missouri Tax Registration Application)
- Get a no-tax due statement from the DOR
- Request reinstatement of local business permits as needed.
You cannot make sales without a sales tax permit, and doing so can subject you to significant penalties and legal charges. Make sure you have all the right permits in place before you start operating again.
How to file back taxes in Missouri
Ready to get caught up on your back taxes. Whether you're catching up on your own or filing a return after receiving a non-filer notice from the state, here's what you need to do:
- Identify the periods where you have unfiled returns – first, figure out which returns you need to file. If you're a business taxpayer, you may need to catch up on multiple types of returns, but if you're an individual, you probably only need to deal with the state's income tax returns.
- Get the tax forms – the DOR may make changes to tax returns every year, so make sure you have the forms for the right year(s). If you use tax prep software, you can usually only go back three years for state returns, but you should be able to get paper returns for older years by contacting the DOR directly or working with a tax professional.
- Gather your documents – you can use your IRS online account to gather wage and payment documents (for instance, W-2s or 1099 forms). You can generate records for your business tax return through your bookkeeping, point-of-sale, and payroll software. If you don't have those records, you may need to hire a tax pro to help you reconstruct records based on your bank statements.
Once you've got everything together, you just need to fill out the returns, send them to the state, and make a plan to pay your back taxes.
Voluntary Disclosure Program for unfiled Missouri tax returns
Missouri's Voluntary Disclosure Program helps taxpayers get back into compliance while minimizing penalties and reducing the lookback period. To qualify, you must contact the state before the DOR reaches out to you about the unpaid taxes or starts auditing your returns.
The VDP reduces the lookback period to the lesser of four years or the time you've been required to file MO tax returns. However, if you've been collecting trust fund taxes, the lookback period will extend through the entire period when you collected those taxes. Here are some examples.
- A corporation subject to corporate income tax for the last two years: a two-year lookback period
- A corporation subject to corporate income tax for the last five years: a four-year lookback period
- A business that owes sales tax for five years but hasn't collected sales tax from customers – a four-year lookback period
- A business that owes sales tax for five years and has been collecting sales tax from customers – a five-year lookback period
The exact lookback period may vary based on other details. The above is just a summary of what generally happens with MO VDP cases.
FAQs about unfiled tax returns in Missouri
Can the MO DOR file a tax lien if I don't file a tax return?
Yes, the MO DOR can file a tax lien against you if you don't file your tax returns, but first, the state must assess the tax against you. They'll send you a Notice of Deficiency or Assessment, which gives you a chance to dispute or appeal before the liability becomes final.
How can you avoid penalties when filing back taxes?
To minimize penalties, file your unfiled returns as soon as possible after you miss the deadline. Talk with a tax professional to see if you qualify for the state's Voluntary Disclosure Program, which allows qualifying taxpayers to file unfiled returns without facing penalties.
Does Missouri participate in the Multi-State Voluntary Disclosure Program?
Yes, Missouri does participate in the multi-state Voluntary Disclosure Program. If you have unfiled sales tax returns in Missouri as well as other states, you may want to use this program to get back into compliance.
Get Missouri back tax filing help.
You don't have to deal with this on your own – and in fact, you should work with a professional. A licensed tax professional can help you file tax returns, using advanced knowledge of state and federal tax codes that reduce your tax exposure as much as possible. They can also help you apply for penalty relief and set up payments.
If you've received an assessment notice, a professional can help you understand what's happening and appeal. They can also represent you through appeals and ensure that your rights are protected. Don't wait – use TaxCure to find help today. Start your search now or use the links below to see a directory of tax pros with Missouri experience.