Understanding This Year’s Missouri Tax Return Troubles

This tax season has gotten off to a rough start in the state of Missouri. Due to the error in Missouri’s Department of Revenue, taxpayers who normally expect to receive a refund may not receive one and those who normally do not expect a tax bill may end up with one. There are resources from the Department of Revenue to help corporate and personal income taxpayers affected by an error in by the state withholding tables.

The problem started with the federal changes in the federal tax law. Then the IRS updated rules for taking taxes out of paychecks, adding to the miscalculation issue. While the error won’t affect the overall amount of taxes Missourians ultimately owe, people often count on getting a refund during the tax season and may be disappointed.

Some resources for helping affected taxpayers are the following:

  • The Department of Revenue has created a dedicated phone line ((573) 522-0967) offering assistance for taxpayers who have questions about their 2018 return.

  • Taxpayers who are unable to immediately pay their taxes may set up a payment plan with the department, online or by phone.

  • The Taxation Division call center agents are offering abatement of penalties and are working with taxpayers to adjust balances for interest.

  • The department will not impose penalties for underpayment of estimated tax, provided that the taxpayer has paid at least 85 percent of the tax owed by April 15, 2019, with the standard threshold at 90 percent.

  • The department will evaluate if an Offer in Compromise agreement is necessary if an individual cannot pay their taxes after all other payment options have been attempted.

  • Taxpayers can opt-in to receive automatic texts and emails with each update of their tax status. To enroll for alerts, customers simply need three pieces of information: their Social Security number, filing status, and anticipated refund or balance due. Access the Missouri Return Inquiry System and sign up for automatic alerts here.

If you seek help or answers about your Missouri tax return, utilize the resources above or contact your accountant.  Schultz, Wood & Rapp P.C. is happy to help you navigate this year’s tax season as your trusted advisors.