Missouri Code of State Regulations › Title 12 - DEPARTMENT OF REVENUE › Division 10 - Director of Revenue › Chapter 2 - Income Tax › Section 12 CSR 10-2.017 - Transient Employer Financial Assurance Instrument for Employer's Withholding Tax

Current through Register Vol. 49, No. 14, July 15, 2024
PURPOSE: This amendment removes the outdated
				  publisher's note, corrects forms, makes minor technical corrections, adds
				  incorporated by reference information, and removes three (3) outdated forms
				  currently attached, Form 2982, Form 2981, and Form 2980.
(1) Out-of-State Transient Employer Defined.
				"Transient employer" has the same meaning as used in section
				285.230, RSMo.
(2) Every transient employer shall file with
				the director of revenue a financial assurance instrument including but not
				limited to a cash bond, surety bond or an irrevocable letter of credit, which
				has the same meaning as used in section
				400.5-103, RSMo.
(3) Types of Financial Assurance
				Instruments. Financial assurance instruments which may be posted to secure
				payments of taxes by out-of-state transient employers shall be in the form of a
				surety bond, cash bond, an irrevocable letter of credit issued by any state or
				federal financial institution, an assignment of certificate of deposit, or any
				other financial assurance instrument which is deemed acceptable by the director
				of revenue. Other financial assurance instruments will be reviewed for approval
				on a case-by-case basis.
(A) A surety bond
				shall be issued by an insurance company licensed for bonding in Missouri on
				behalf of the applicant on the Surety Bond Form 331. The form shall bear the
				seal of the insurance company, the effective date, and it shall be accompanied
				by a power of attorney letter or form if signed by the attorney-in-fact. surety
				bond form shall also contain the signature of the applicant.
(B) A cash bond shall be paid to the director
				of revenue in the form of a cashier's check, money order, or certified check
				and be accompanied by a Cash Bond Form 332.
(C) An irrevocable letter of credit issued by
				any state or federal financial institution may be submitted to the Department
				of Revenue on a. Irrevocable Letter of Credit Form 2879.
1. The letter of credit shall be irrevocable
				and the beneficiary shall be the Department of Revenue. Payment shall be made
				immediately upon presentment of a demand for payment signed by the director of
				revenue or a designated representative.
2. All letters of credit shall conform to the
				Department of Revenue's required format in the Irrevocable Letter of Credit
				Form 2879. The letter of credit must include an authorization for release of
				confidential information allowing the director of revenue or a designee to
				release confidential tax information to the issuing bank.
3. A demand for payment upon a letter of
				credit shall be presented for payment only for the reason that bond proceeds
				are needed to satisfy any delinquencies or claims as provided for in section
				285.230, RSMo.
4. Letters of credit shall have a term of one
				(1) year and shall be automatically renewable on an annual basis for an
				additional one (1) year. A letter of credit may be canceled by the issuer sixty
				(60) days after written notice is delivered to the Department of Revenue. Upon
				the notice of cancellation, the transient employer shall be required to file a
				new financial assurance instrument on or before the expiration of the sixty-
				(60-) day period. If the required financial assurance instrument is not
				received within that time period, the employer commits the crime of failure to
				file a financial assurance instrument if the employer knowingly fails to
				comply.
5. If a transient employer
				ceases business or desires to substitute a financial assurance instrument for
				their letter of credit, the director of revenue shall retain the letter of
				credit for a period of ninety (90) days or until the director of revenue is
				satisfied that no claims exist against the letter of credit.
6. A transient employer shall be required to
				increase the amount of the letter of credit or provide an additional financial
				assurance instrument in any situation where the employer would be required to
				increase or provide an additional financial assurance instrument as provided
				for in section 285.230, RSMo. An increase to
				the amount of the letter of credit shall be deemed the submission of an
				additional financial assurance instrument for the amount of the
				increase.
(D) An
				assignment of certificate of deposit may be submitted to the Department of
				Revenue using Form 4172. The certificate of deposit must be issued by a state
				or federally chartered financial institution.