Mississippi Administrative Code › Title 35 - Department of Revenue › Part 1 - Administrative › Chapter 02 - Taxpayer Records and Document Retention › Section 35-1-02-111 - Penalties for Noncompliance

Current through June 25, 2024
1. The provisions
				of the Mississippi Code of 1972 shall govern the administration of any tax,
				interest, or penalty assessed due to late EFT payments.
2. No specific additional penalty provisions
				are provided concerning compliance with the EFT tax payment requirement.
				Rather, the general provisions for all taxpayers apply. To avoid the imposition
				of penalties, timely filing of the tax return along with timely payment in
				accordance with the provisions of the Mississippi Code of 1972 and the
				provisions of this rule is required.
3. Failure of a taxpayer to respond to the
				notification from the State Tax Commission concerning the required use of EFT
				to make payments for a tax type or failure to timely or properly make EFT
				payments in accordance with this rule shall subject the taxpayer to applicable
				penalty, interest, and loss of discount, as provided by the Mississippi Code of
				1972 for delinquent or deficient tax payments. If payment is made for a tax
				type for which a taxpayer was selected to make payments using EFT, and the
				payment is made in a method which is not in accordance with the procedures
				stated in this rule, a delinquent payment penalty for that tax type as
				specified in the Mississippi Code of 1972 may be assessed. In addition to any
				penalty which may be imposed, interest shall be added to the amount of tax due
				from the due date of the tax payment to the date that the funds become
				available to the State Treasury. It is presumed, in the absence of evidence to
				the contrary, that said funds will be available on the third business day
				following receipt of payment.
4.
				Penalties may be waived when the circumstance causing delinquency are beyond
				the control of the taxpayer. Errors made by the Data Collection Center, the
				State Treasury or the State Tax Commission which result in a late payment by
				the taxpayer shall not subject the taxpayer to late payment penalties,
				interest, or loss of applicable discount for the late payment.
5. When a taxpayer uses the ACH Debit payment
				method, the State of Mississippi's bank is the originating bank and is
				responsible for the accuracy of the transmission. If the taxpayer timely
				initiated the ACH Debit transaction, received a reference number, and can show
				adequate funds were available in the bank account, no penalties shall apply
				with respect to the payment if the transaction was not properly
				completed.
6. When a taxpayer uses
				the ACH Credit payment method, the taxpayer's bank is the originating bank and
				the taxpayer is primarily responsible for the accuracy and proper completion of
				the transaction. The taxpayer must show timely initiation for the CCD+ entry
				and the required TXP Banking Convention addenda record, that there were
				sufficient funds in the account and that the financial institution properly
				completed the transaction in a timely manner in order to prove timely
				compliance. If the taxpayer can make this showing, then no penalties shall
				apply with respect to the payment if the transaction was not properly
				completed.
7. A taxpayer who is
				required to make EFT payments and who is unable to make a timely payment
				because of system failures within the Automated Clearing House System, which
				are beyond the taxpayer's control, shall not be subject to penalty or interest
				for late payment or loss of applicable discount.