The DOR is employing a new technology-based approach to improve tax compliance among its Taxpayer base.
The State will be using data warehousing to match information from a number of outside sources to the Department of Revenue’s internal data to identify businesses and individuals who are not properly registered, not filing, or are not correctly reporting their taxes.
The data warehouse information will be used to detect non-compliance in all areas of taxation. This includes corporate income, franchise, sales and use, and individual income taxes. Resident and nonresident businesses and individuals will be targeted. Once identified, Taxpayers who are believed to be in non-compliance will be contacted, the appropriate tax liability will be assessed, and the Taxpayer will be required to pay the tax and any statutory penalties and interest.
The new technology is part of Missouri ’s ongoing attempts to crack down on those who are not paying their fair share of state tax. This new process is expected to be more efficient and accurate than previously used procedures, and will bring in previously unreported revenue.
However, the State is offering Taxpayers who wish to report and pay any taxes owed the opportunity to do so before receiving notification. By voluntarily paying the tax, interest due will stop accruing as of the date of payment, and the Department will also waive the penalty due.
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