Who is required to file a corporate tax return?All corporations, associations, or entities doing business, earning income, or existing in Mississippi are required to file a corporate income and franchise tax return. Every corporation, domesticated or qualified to do business in Mississippi must file a return even if the corporation is inactive or not engaged in business. Back to top |
What is franchise tax?A franchise tax is imposed on corporations for the privilege of doing business in the State of Mississippi. Franchise tax is due annually as long as the corporation remains incorporated, domesticated, or continues to do business in Mississippi. Back to top |
What is the minimum franchise tax due?The minimum franchise tax due is $25.00. Back to top |
I am not a franchise. Why do I have to file a franchise tax return?Franchise tax is not based on whether or not a corporation is a franchise; it is a business tax imposed on every corporation for the privilege of doing business in Mississippi. Back to top |
How do I compute the franchise tax due?For
tax years beginning on or after January 1, 2019 but before January 1, 2020,
Franchise tax is computed at $2.25 per $1,000 (or fraction thereof) of the
value of the capital employed, in excess of $ 100,000 or the assessed property values in this state,
whichever is greater. In no case shall the franchise tax computed be less than
$25.
For tax years beginning on or after January 1, 2018 but before January 1, 2019, Franchise tax is computed at $2.50 per $1,000 (or fraction thereof) of the value of the capital employed, in excess of $ 100,000 or the assessed property values in this state, whichever is greater. In no case shall the franchise tax computed be less than $25.
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What is the date of the balance sheet I should use to compute my franchise tax return?The corporation must use the ending year balance sheet to compute franchise taxes as of the accounting year end for the corporation. Back to top |
How do I compute the income tax due?Mississippi has a graduated income tax rate and is computed as follows:
0% on the first $2,000 of taxable income.
3% on the next $3,000 of taxable income.
4% on the next $5,000 of taxable income .
5% on all taxable income over $10,000. Back to top |
Does Mississippi have a minimum corporate income tax?No, Mississippi does not have a minimum corporate income tax. Back to top |
Does Mississippi require estimated tax payments?Yes, every corporation and pass-through-entity (PTE) with an annual income tax liability in excess of $200.00 is required to make estimated tax payments. Payments should be made separately for each entity. Back to top |
Does Mississippi offer the option to submit estimated payments electronically?Yes, estimated payments can be submitted through Taxpayer Access Point "TAP". Back to top |
What are interest and penalty charges?Interest and penalty applies to any
underpayment of tax not received on or before the due date of the return. Starting with
the 2018 filing period, interest and penalty is computed at the rate of ½% per month and is based
on the amount of tax not paid by the due date of
the return. The
penalty shall not exceed 25% in the aggregate.
Penalties are also imposed for failure to file a return when due.
The penalty imposed for failure to file a return is 5% per month not to exceed
25% in the aggregate. Such failure to file a return penalty shall not be less
than $100 for income tax.
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How does a company register to file Mississippi corporate income and franchise taxes?You can register online through TAP or call 601-923-7700 to request a paper application. Back to top |
Do I need to apply for a corporate identification number?The Department of Revenue
assigns account numbers to all tax accounts. When registering for a tax
account, you will be asked to provide your federal employment identification
number (“FEIN”) as identifying information. Back to top |
Does Mississippi offer the option to submit returns and payments electronically? Yes, returns and payments may be submitted electronically through
an e-file software provider or preparer. Return, billing, audit and estimate payments can be made online through TAP as
well.
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What form of payment does the Mississippi Department of Revenue accept?The Mississippi Department of Revenue accepts the following types of payments : - You can make estimate payments, or payments for tax returns, billings or audits through your TAP account. There are no fees. You may make estimate payments without creating a TAP account. Go to TAP and select "Make an Estimate Payment" found under the "I want to..." section from the TAP homepage.
- Pay by credit card or e-check. Go to www.ms.gov/dor/quickpay. There is an additional convenience fee charged by Mississippi Interactive.
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Where do I mail my corporate income and franchise tax return?
P.O Box 23050
Jackson, MS 39225-3050
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What is the due date for corporate income and franchise tax returns and pass-through tax returns?The C Corporation income
and franchise tax return is due on or before the 15th day of the 4th month following the
close of the taxable year. PTE returns are
due on or before the 15th day of the 3rd month following the close of the taxable year. Mississippi will follow federal return filing and extended filing
due dates.
The due date(s) for filing 2019 income tax returns is extended
until July 15, 2020. Income tax returns for C-Corporations and Pass-through
entities, which file a fiscal return that would have been due on either April
15th, May 15th or June 15th is likewise
extended until July 15, 2020. Additionally the due date to pay quarterly
estimated payments due April 15th, May 15th or June 15th
is extended until July 15, 2020. Mississippi will continue to follow federal
return filing and extended filing due dates for any such returns. Back to top |
What are the requirements for filing an extension?Taxpayers requesting an extension of time must remit the tax due with the proper Mississippi Application for Extension on or before the due date of the return to receive an automatic extension of time to file their tax returns. The authorized extension of time to file does not extend the time for payment of the income or franchise tax due. The federal extension will be accepted in lieu of the Mississippi extension if no tax liability exists on the due date of the return. Back to top |
Who can discuss a corporate tax question with a Mississippi Department of Revenue representative? General tax questions that do not address confidential tax information filed with the Mississippi Department of Revenue may be discussed with anyone. However, confidential tax information such as payments received, returns, adjustments, and extensions filed, can only be discussed with an officer of the company, the preparer, or a person who has a Mississippi Power of Attorney on file with the Department. Back to top |
My corporation is incorporated in another state. Am I required to register with the Mississippi Secretary of State?For information contact the Mississippi Secretary of State at 601-359-1633 or visit www.sos.ms.gov. Back to top |
What are the steps for a corporation that is no longer doing business in Mississippi and wants to withdraw from the State?If the corporation is registered with the Mississippi Secretary of State, then the taxpayer should withdraw or dissolve the corporation through the Secretary of State. To complete the withdrawal process, a final return must be filed with the Mississippi Department of Revenue. The taxpayer must ensure that the corporation does not have any Mississippi assets in order for the final return to be valid.
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What forms are needed to amend a corporate tax return?A complete amended return must be filed using the same
forms as originally filed. The amended return check
box must be checked on the form. Also, any
documentation supporting the adjustments must be included with the amended
return. Back to top |
What is the statute of limitations for filing an amended return?A taxpayer may amend a return filed at any time within
three (3) years from the due date, or if an
extension of time to file was granted, three (3) years from the extended due
date.
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Can I obtain a letter of “good standing”?The Department of Revenue does not issue letters of good standing. To obtain a Certificate of Good Standing, contact the Secretary of State at (601) 359-1633. Back to top |
My corporation has no activity or assets, do I have to file a tax return?Yes,
every
corporation domesticated or qualified to do business in Mississippi must file a
return even though the corporation is inactive or does not have any Mississippi
assets. A corporation remains subject to the filing requirements until such
time as the corporation is officially dissolved or withdrawn through the
Secretary of State.
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I closed my business, should I notify the Department of Revenue?Yes,a final return must be filed with the Mississippi Department of Revenue. Back to top |
How do I file a final return?The “Final Return” check box must be checked on the face of the corporate return filed. Back to top |
What is the Department of Revenue’s position regarding nexus in Mississippi?For Mississippi income tax purposes, nexus is defined
as the operation of any enterprise or activity in Mississippi for financial
profit or economic gain. For a list of examples of what constitutes nexus, see
Mississippi Income Tax Regulation Title 35 Part
III Subpart 08 Chapter 06. The
Department has a nexus questionnaire that may be requested to determine nexus
in the state.
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Does having an employee in Mississippi create nexus for a company based in another State? Yes, having an employee in
Mississippi creates nexus.
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What is a Mississippi combined income tax return and what are the requirements to file on a combined basis?A Mississippi combined income tax return includes two (2) or more members of an affiliated group of corporations that are taxable in Mississippi and where one or more member(s) of the combined group is taxable in another state. While each member will compute its Mississippi taxable income (or loss) on a separate basis, the net business income (or loss) so computed for each member shall be combined to determine the net business income (or loss) of the affiliated group of corporations. Back to top |
Can a combined group determine its franchise tax on a combined basis?No,
Mississippi
law does not authorize combined reporting for franchise tax; therefore,
separate returns are required of all subsidiary corporations qualified to do
business in Mississippi or which are, in fact, doing business in Mississippi.
The reporting corporation must file a return that includes its franchise tax
and the combined group income (or loss).
However, the reporting company in a combined group can make a payment toward
the members’ franchise tax liability using the Mississippi Application for
Extension Form 83-180. When making electronic payments through TAP, the payment must be made separately for each company.
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For apportionment purposes, does Mississippi have a “throwback” rule?
Yes, if a state does not require a corporation to file an income tax return then those sales generated in that state's jurisdiction must be included in the Mississippi numerator of the sales factor.
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What should I do if I receive a failure to file a corporate return notice?If a return was filed, send a copy of the return and if tax paid, a copy of the front and back of the cancelled check along with and a copy of the failure to file notice to P.O. Box 1033, Jackson, MS 39215-1033. If a return was not filed, then submit return and payment (if applicable) to P.O. Box 23191, Jackson, MS 39225-3191.
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Where and when do I file my corporation’s annual report?The annual report is filed with the Mississippi Secretary of State’s office and is due by April 15th. Payments can be received electronically or mailed to: Mississippi Secretary of State; Business Service; 125 S. Congress Street, Jackson Ms 39201. For more information, please contact the Mississippi Secretary of State’s office at (601) 359-1633. Back to top |
My corporation has been suspended by the Secretary of State. What steps must I take to have my corporation reinstated?In order for a company to be reinstated, all corporate tax returns, outstanding tax liabilities, penalties, and interest must be filed and paid for all tax types with the Mississippi Department of Revenue. A tax clearance letter must also be requested and submitted to the Secretary of State in order to be reinstated. A tax clearance letter can be requested through TAP or through mail by an officer or authorized representative. Back to top |
What is the basis for suspension? Mississippi law requires the Department of Revenue to notify the Secretary of State when a taxable entity fails to pay and/or file any Franchise Tax return. Back to top |
How do I file if my corporation is a Limited Liability Company (LLC)?A domestic or foreign limited liability company (“LLC”)
is classified as an entity for purposes of Mississippi income tax laws in the
same manner as the entity is classified for federal income tax purposes. If an
LLC is treated as a partnership for federal income tax purposes, it will file
as a pass-through
entity for Mississippi purposes. If an LLC is treated as a corporation
for federal income tax purposes, it will file as a corporation for Mississippi
income and franchise tax purposes.
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How do I file if my corporation is an S Corporation?
S Corporations file
as a pass-through
entity (PTE) for Mississippi purposes. The income tax is filed and paid
by the shareholder on their Mississippi individual income tax return. However,
a non-resident with no other interest in
Mississippi may elect to file a PTE composite return; as a result, the income
will be taxed and paid at the entity level. Once the election to file a composite
return is
made, the taxpayer must continue to file in this manner. All S
Corporations are subject to franchise tax which is taxed and paid at the entity
level. Back to top |
If I am filing an amended Mississippi return to carryback a Mississippi net operating loss (“NOL”), what documentation should I include?In making a claim for a NOL deduction, the taxpayer
must file with its amended tax return a concise statement setting forth all
material and pertinent facts related to the amended return; including Form 83-155 –
Mississippi Corporate NOL and Capital Loss Worksheet. If more
than one NOL
is being utilized, the worksheet must be submitted for each loss year
individually.
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What do I need to provide to the Mississippi Department of Revenue if I claimed non-business or wholly passive investment income (non-Mississippi source income)?For non-business
income, Form 83-150 must
be attached to the Mississippi return stating the
nature and/or source of the non-business income or loss. A statement must be included to outline the
reasons that the income, loss, expenses, or deductions is being allocated.
Wholly passive investment income from outside of Mississippi
will be considered only with an attached detailed explanation.
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What information must I provide to the Mississippi Department of Revenue if I am filing an amended return due to an Internal Revenue Service (“IRS”) audit or an amended Federal return?
If you are filing an amended return due to an IRS audit, the
Revenue Agent Report (RAR) must be included
with the Mississippi amended return. There is no penalty charged on the
additional balance of tax due if the amended
return is filed within 30 days of closing with the IRS. If you are amending your state return as a result of an
amended federal return, the amended federal 1120-X must be filed with the Mississippi amended
return. If the taxpayer files consolidated for federal purposes, a proforma
amended federal return should be filed, as well
as, the amended consolidated federal return.
Furthermore, a complete amended return must be filed using the same forms as
originally filed. Any other
documentation supporting the adjustments must also be
included with the amended return. Back to top |
Did Mississippi adopt the Internal Revenue Service’s claim of right doctrine?No, Mississippi did not adopt
the IRS’s claim or right doctrine.
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How are Qualified Subchapter S Subsidiaries (QSSS) treated for Mississippi income and franchise taxes purposes?A federal election to be treated as a QSSS is considered an election for Mississippi purposes,and as such, the QSSS will be treated the same for state income and franchise tax purposes. The reporting company must file a corporate tax return on behalf of the QSSS. Back to top |
Does Mississippi require bonus depreciation to be added back to taxable income?
Mississippi does not recognize the federal deduction
allowed for qualified depreciable property acquired and placed in service
during the tax year; therefore, the bonus depreciation deduction must be added
back to Mississippi taxable income.
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If I carried back a net operating loss two years for federal purposes, am I required to carryback the net operating loss two years for Mississippi purposes?No, on Mississippi Form 83-155, the taxpayer is required to carryback the Mississippi net operating loss (NOL) two (2) years regardless of the federal election; however, a state election can be made to forego the carryback and to carryforward the NOL for state purposes. Once this election is made it cannot be revoked. Back to top |
Will Mississippi follow the federal provision on NOL as amended under the Tax Cuts Act (TCJA)?Back to top |
Will Mississippi follow the IRS relating to paid preparer signature?Yes, Mississippi will follow the IRS electronic paid preparer signature requirements. Back to top |
If a company has to file a short period return for Federal purposes, does a short period return have to be filed for Mississippi?Yes, the state return filing period must be the same as the return period filed for federal purposes. Back to top |
What U.S. Government interest is deductible?Interest on the obligations of the United States, its instrumentalities, its possessions or upon securities issued under authority of an act of Congress is wholly exempt from tax. The term "obligations of the United States" means any United States Government obligation used to finance the national debt, e. g. U.S. Treasury Securities such as notes, bonds or certificates, U.S. Treasury bills or other instruments acknowledged by the U.S. Secretary of Treasury as an obligation of the United States. Back to top |
What types of taxes have to be added to federal income?The following types of taxes must be added back to federal taxable income for Mississippi purposes: federal and state (excluding Mississippi) income taxes; any taxes based on or measured by net income; estate and inheritance taxes; gift taxes; and cigar and cigarette taxes, gasoline taxes, and sales and use taxes if not included in business gross income, or if not incurred as an item of expense in a trade or business. Back to top |
Has Mississippi adopted the Uniform Division of Income for Tax Purposes Act (UDIPTA)?No, Mississippi has not adopted UDIPTA.
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Does Mississippi follow the Multistate Tax Commission regulations and policies?No,
although
Mississippi is an associate member of the Multistate Tax
Commission, Mississippi did not enact
the Multistate Tax Compact into our State laws.
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How do I obtain more information on business credits?For more information on available
incentives and credits, see the Mississippi Tax Incentives, Exemptions and
Credits Booklet which can be found under the “Publications” tab and by clicking
on the “Tax Incentives” link.
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Does Mississippi allow federal income tax as a business expense deduction?No,
Mississippi does not allow federal income tax as a business expense deduction. Back to top |
What are the filing requirements for a corporation operating in Mississippi as a partner in a partnership?Every partnership, domestic or foreign, deriving income from property owned within the state of Mississippi, or business, trade, profession or occupation, carried on within the state shall make a return for each taxable year. The individual partners are subject to tax upon their distributive share of the partnership net income (loss). The partnership net income (loss) shall be computed in the same manner and on the same basis as the net income (loss) of an individual. Deductions for contributions or gifts are allowed to the partners on their individual return. Back to top |
How does my nonprofit organization obtain tax exempt status?Tax exempt status, i.e. 501 (c) (3), is obtained through the IRS. Back to top |