Missouri Department of Revenue

Identity Theft & Taxes

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The 2015 tax filing season seems to be riddled with tax scams and identify theft. The IRS has used the term “rampant” to describe the situation when I spoke with them. I’ve seen two situations occur recently.

1) Falsely Filed Tax Returns:
I have spoken with many other CPAs, the IRS, and clients; and we’ve seen a lot of this going on.  Taxpayers have had their Social Security Numbers stolen and tax returns falsely filed on their behalf, many times with another, unrelated person, male or female. The IRS is sending out notices in some instances asking if you filed the tax return.  Be sure to respond to this notice in a timely manner so the return does not get processed.  One taxpayer actually received a refund at their home mailing address when he had not yet filed a return himself yet…we’re still scratching our heads trying to figure that one out.

2) Message from Fake IRS Agents: We’ve heard a lot about these messages and it has been in the news recently in St Louis.  I’ve received one of these calls myself.  They typically say that your account has been audited and you owe some balance.  They don’t appear to have your Social Security Number, just your phone number, name and address. They are tracking who they call and will only speak with you if they have your name and phone number in their database. In my case it was an obvious call from India.  I recorded a call with the would-be-scammer and will post the conversation shortly.  Don’t fall for their tactics, and, if you’re not sure if its real call your CPA and ask for assistance.

IRS Identity Theft Page:  https://www.irs.gov/uac/Taxpayer-Guide-to-Identity-Theft

– Steve Scott

Missouri Use Tax – Requirements for Businesses

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Overview

The State of Missouri imposes a use tax on Missouri businesses and individuals for the privilege of storing, using, or consuming tangible personal property in Missouri. While Missouri has imposed the use tax since the late 1950s, many purchasers are not aware of their responsibilities to report transactions and remit the appropriate tax.  The purpose of this letter is to make you aware of your responsibilities and help you avoid noncompliance penalties.

If an out-of-state seller does not collect Missouri sales or use tax on a sale to a Missouri purchaser, the purchaser has a responsibility to file a Missouri Consumer’s Use Tax Return and remit any tax due directly to the Missouri Department of Revenue.  The amount of use tax due to Missouri is reduced by any sales or use tax paid to another state on the items purchased.

How this Affects Your Business

If you have purchased any tangible personal property from out-of-state and no sales or use tax was paid on the purchase, you may be liable for Missouri use tax.  Common examples of purchases on which use tax may be due include:

Purchases from Internet sellers or catalogs

Purchases from out-of-state suppliers that were shipped directly to you from outside Missouri

Items you purchased from outside Missouri that you brought into the state

Goods imported from other countries

Missouri law provides an exception from filing a Consumer’s Use Tax Return if your total un-taxed purchases are less than $2,000 during a calendar year.  Once your annual purchases on which tax has not been paid equals or exceeds $2,000, you must file a Consumer’s Use Tax Return and pay tax on your total taxable purchases, including the first $2,000 in taxable purchases.

The Missouri Department of Revenue has recently implemented new tools to help identify businesses and individuals that are not complying with Missouri’s use tax laws.  This can be complicated and confusing so if you believe you may have a Missouri use tax filing responsibility for 2012, please let us know.  We can help you determine whether your purchases qualify for any exemptions (such as manufacturing machinery and equipment) and prepare and file the return if necessary.