Mississippi Announces New Method to Submit Voluntary Disclosure Agreements

The Mississippi Department of Revenue (DOR) has announced a new method for taxpayers to submit Voluntary Disclosure Agreements (VDAs). Taxpayers who would like to enter the state’s VDA program can now submit their request via email to [email protected]. Previously, to apply for voluntary disclosure with Mississippi, a letter would need to be mailed to the DOR.

Mississippi’s VDA program offers a 36-month lookback period for sales and use tax. If the taxpayer has collected sales or use tax without remitting the tax, the lookback period will be

extended to include all periods in which sales and use tax was collected. Under the program, the DOR agrees to waive late filing and late payment penalties. Interest is not waived. The program is not available to taxpayers who have previously filed returns and/or qualified to do business and have fallen behind in their filing responsibilities.

Taxpayers can come forward anonymously, and once they are accepted into the VDA program, they can provide their name along with the necessary forms, filings, and payment within 60 days of being accepted. Applicants may be asked to complete a nexus questionnaire as part of the application process.

Taxpayers may be disqualified from the program if any of the following is found:

• Previous contact with the DOR within 3 years prior to the initial request for voluntary disclosure. Previous contact includes receipt of a nexus questionnaire, an audit, notice of audit or telephone call regarding a scheduling of audit, payment of tax, registration for tax, request for extension of time to file, and filing of a return(s) during or 3 years before the look-back period.
• The taxpayer is currently under audit by the DOR.
• Misrepresentation of facts set forth in the initial letter or related correspondence.
• Failure to make the necessary tax filings and agreed payments within 60 days of the approval letter issuance.

(Update on Voluntary Disclosure Agreement Program, Mississippi Department of Revenue website, November 8, 2024; Revenue Technical Bulletin TB 71-500-09-1)