Missouri DOR Voluntary Disclosure Program

Missouri Voluntary Disclosure

Missouri's Voluntary Disclosure Program (VDP) may be able to provide you with relief if you have unfiled and unpaid taxes in the Show-Me State.

The Missouri DOR offers this program for all types of taxpayers for all taxes the department administers including individual income tax, corporate income tax, sales and use tax, and withholding tax. To qualify, you must apply before the DOR contacts you about the unpaid tax.

To get help now, use Taxcure to search for a tax pro who has dedicated experience with the Voluntary Disclosure Program in Missouri, or read on for more details.

What Is the Voluntary Disclosure Program?

The MO VDP is a program that allows taxpayers to get into compliance with the state's tax reporting and payment obligations without worrying about criminal charges or financial penalties.

To participate, you must apply before the DOR contacts you about the unpaid tax. For example, if the DOR has sent you an audit notice or a demand for payment, you do not qualify to use this program.

Eligibility for the Voluntary Disclosure Program

You are only eligible for the Missouri Voluntary Disclosure Program if all of the following statements are true.

The DOR has not contacted you about the tax.
You are not under audit for any Missouri taxes.
You have not filed a return in relation to the tax.

For example, say that you filed a sales tax return showing an understated tax liability. You cannot use the Voluntary Disclosure Program to come clean to the department about the taxes you didn't report. Contact a tax professional about the best option in this situation, but generally, you will just need to amend the return you filed.

Here's another example. Imagine that you didn't file an income tax return and the state sends you a letter about the missing return. You also do not qualify to apply for a voluntary disclosure.

VDP Requirements

When you make a Voluntary Disclosure in Missouri, you agree to the following:

To prepare the tax returns and calculate the tax due within 60 days.
To pay the tax plus interest.
To share records with the DOR if requested to verify the information on your returns.
To stay in compliance with filing and payment obligations after making the disclosure.

Generally, you only need to file and pay taxes for the last four years. However, if you were subject to the tax for fewer years, you will file accordingly. Additionally, if you were collecting taxes from other parties, you must file and pay for all applicable periods.

To give you an example, imagine that a business was collecting sales tax from Missouri customers for the last five years but not paying the tax to the state. If they make a voluntary disclosure, they must file and pay for the last five years.

Now, imagine that the same business should have been collecting sales tax for the last five years, but they weren't. If they make a voluntary disclosure, they will only need to file and pay for the last four years.

Finally, imagine a company that has been collecting but not remitting Missouri sales tax for the last two years (and had no obligation to do so before that time). Then, that business only needs to file two years of returns after making a voluntary disclosure.

Benefits of a MO Voluntary Disclosure

If you make a Voluntary Disclosure, you will see the following benefits:

Penalty waiver — The late filing penalty is 5% of the tax per month. The DOR also assesses a penalty of up to $10,000 if you make taxable sales but don't register for a sales tax license. These are the types of penalties you avoid by participating in the VDP.
Limited look-back period - Generally, you only need to file returns from the last four years or the amount of time you were supposed to pay the tax if less. The look-back period will be extended if you were collecting tax but not remitting it.
Confidentiality — The DOR will not release any of the information from your VDP application or returns unless required based on the exchange of information agreements between the DOR and the IRS or other entities.

When you come forward voluntarily, the state may be more willing to approve a payment plan or an offer in compromise on your tax liability. In contrast, if you wait for the state to find you, you risk facing tax liens, penalties, and unwanted collection actions on the unpaid tax.

How to Apply

To apply, file Form 5310 (Application for Voluntary Disclosure). You can complete this form and mail it to the DOR or file it online. If you want to apply anonymously, have a representative fill out the top of the form. Then, the DOR will review your application and if they offer you an agreement, you can reveal your identity at that time.

The application requires the following details:

Type of taxpayer - For example, individual or type of business entity.
Type of taxes currently registered for in Missouri.
Type of tax you need to disclose.
Changs in the business in the last five years.
Fiscal year-end date and all year-end dates for the last five years.
When you started conducting business in Missouri.
Business activities.
A description of your product return process if you sell products to Missouri residents from out of state.
A description of the real property, personal property, and intellectual property you own in Missouri.
A description of the personnel (employees, contractors, affiliates, representatives, etc) your company has in Missouri, their activities, and the amount of time they spend in the state.
A list of activities that affect your nexus in Missouri.
Facts related to the voluntary disclosure. For example, an explanation of whether the failure to file and pay taxes was related to reasonable cause or intentional disregard or negligence.
Whether or not you have been contacted by Missouri or the Multistate Tax Commission about the unpaid taxes.
Years related to the unfiled returns.
Taxes that were collected but not remitted.
Estimated tax liability related to the disclosure.

Finally, you enter any closing remarks you want to make, and then, you note how you heard about the program.

You can complete the application on the DOR's website. Or if preferred, you can fill out a PDF of the application and email it to [email protected] or mail it to the Taxation Division, P.O. Box 295, Jefferson City, MO 65105-0295.

What If You Have Unpaid Taxes in Multiple States

If you realize that you have unfiled returns in multiple states, you may want to make a disclosure through the Multistate Tax Commission (MTC) Voluntary Disclosure Program (VDP). This program can help remote or online businesses that have customers in multiple states. The program is available in Missouri and most other states with the exception of New Mexico.

Get Help With Voluntary Disclosures in Missouri

Have you recently realized that you are supposed to collect sales tax from your Missouri customers? Did you recently learn that your corporation has nexus in the state and should be paying corporate income tax? Do you have unreported Missouri source income that should have been reported on an individual MO tax return?

If you have any unreported or unfiled Missouri taxes, consider contacting a Missouri-based tax pro to help you apply for the VDP. If you qualify, you can save a significant amount on penalties and protect yourself from criminal tax evasion charges. To get help now, use TaxCure to search for an experienced tax professional today.

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