Mississippi State Income Tax Protest

MISSISSIPPI STATE INCOME TAX — PROTEST AND APPEAL

TABLE OF CONTENTS

1. Caption and Filing Information
2. Identification of Taxpayer and Notice
3. Timeliness of Protest
4. Statement of Facts
5. Grounds for Protest
6. Specific Errors in the Assessment
7. Relief Requested
8. Request for Hearing and Procedural Rights
9. Reservation of Rights and Further Appeal
10. Verification
11. Signature and Service
12. Mississippi Practice Notes
13. Sources and References

1. CAPTION AND FILING INFORMATION

BEFORE THE MISSISSIPPI DEPARTMENT OF REVENUE

BOARD OF REVIEW

PROTEST AND WRITTEN APPEAL OF NOTICE OF ASSESSMENT

(Mississippi Individual / Corporate Income Tax)

Assessment / Account No.: [________________________________]

Tax Type: Mississippi Income Tax

Tax Period(s): [________________________________]

Amount in Dispute: $[________________________________]

2. IDENTIFICATION OF TAXPAYER AND NOTICE

2.1. Petitioner [TAXPAYER LEGAL NAME] ("Taxpayer") is a [Mississippi resident individual / [STATE] resident individual / Mississippi-domiciled corporation / foreign corporation qualified to do business in Mississippi] with a principal address at [ADDRESS].

2.2. Taxpayer's Mississippi taxpayer identification number / Federal Employer Identification Number is [________________________________].

2.3. On [DATE], the Mississippi Department of Revenue ("Department" or "DOR") mailed to Taxpayer a [Notice of Assessment / Notice of Proposed Assessment / Examination Adjustment / Refund Denial] identified as Assessment No. [ASSESSMENT NO.] (the "Notice"), asserting additional Mississippi income tax, interest, and/or penalties for the [TAX YEAR(S)] tax period(s) totaling $[AMOUNT] (the "Assessment").

2.4. A true and correct copy of the Notice is attached as Exhibit A and incorporated by reference.

2.5. This protest is timely filed within sixty (60) days of the mailing date of the Notice in accordance with Miss. Code Ann. § 27-77-5.

3. TIMELINESS OF PROTEST

3.1. Pursuant to Miss. Code Ann. § 27-77-5(1), a taxpayer aggrieved by an assessment of tax by the Department, by the denial of a refund claim, or by the denial of a claim to tax credits or incentives, must file a written appeal with the Board of Review within sixty (60) days from the date the Department mailed or delivered written notice of the action.

3.2. The Notice was mailed on [NOTICE MAILING DATE]. The 60-day appeal period expires on [CALCULATED DEADLINE DATE]. This protest is filed on [FILING DATE], which is within that period.

3.3. Where the deadline falls on a Saturday, Sunday, official Mississippi state holiday, or other day on which the Department or Board of Tax Appeals is closed, the deadline is extended to the next business day. Miss. Code Ann. § 27-77-5.

3.4. Filing is timely if (a) postmarked on or before the deadline, (b) hand-delivered before the close of business on the deadline, or (c) electronically transmitted by midnight on the deadline.

4. STATEMENT OF FACTS

4.1. Tax periods at issue. The Notice covers Mississippi income tax year(s) [TAX YEAR(S)].

4.2. Returns filed. Taxpayer timely filed Mississippi Form [80-105 / 80-205 / 83-105 / 84-105] for each tax period at issue, reporting [SUMMARY OF AMOUNTS REPORTED].

4.3. Audit history. The Department initiated an examination on [DATE] by issuance of an audit-engagement letter from [AUDITOR NAME], [FIELD / DESK / OFFICE] of the Income Tax Bureau.

4.4. Information furnished. Taxpayer produced records responsive to each Information Document Request ("IDR") issued during the examination. [Briefly summarize categories produced — e.g., federal returns, K-1s, 1099s, depreciation schedules, apportionment workpapers.]

4.5. Adjustments at issue. The Department's audit report makes the following principal adjustments, each of which Taxpayer disputes:

4.6. Communications with the Department. Taxpayer [has / has not] previously communicated in writing with the Department regarding the disputed adjustments. [Summarize any prior position statements, IDR responses, or closing-conference exchanges.]

5. GROUNDS FOR PROTEST

5.1. Taxpayer protests the Assessment in its entirety on the following independent and alternative grounds. Taxpayer reserves the right to amend or supplement these grounds based on materials disclosed in the Department's administrative record.

5.2. Legal Error. The Department misapplied governing Mississippi income-tax law in one or more of the following respects:

• Misinterpretation or misapplication of Miss. Code Ann. § 27-7-[SECTION] regarding [ISSUE];
• Failure to follow the Department's own published guidance in 35 Miss. Admin. Code Pt. [__], [REG. SECTION];
• Improper rejection of a deduction, credit, exclusion, or apportionment method authorized by Mississippi or federal law incorporated by reference (Miss. Code Ann. § 27-7-15).

5.3. Factual Error. The Department's audit findings rest upon factual conclusions that are not supported by the records produced. Specifically:

• [Identify each factual error and the contradictory evidence — e.g., bank statements, K-1s, contracts, payroll registers.]

5.4. Statute of Limitations. All or part of the Assessment is barred by the 36-month statute of limitations on assessments under Miss. Code Ann. § 27-7-53. [Identify any tax years closed before the date the Department issued the Assessment.]

5.5. Procedural / Due-Process Error. The Department failed to comply with one or more procedural prerequisites, including [e.g., failure to provide a closing conference, failure to issue a 30-day letter, failure to provide an itemized basis for the proposed adjustments], in violation of the Mississippi Taxpayer Bill of Rights and the Due Process Clauses of the United States and Mississippi Constitutions.

5.6. Constitutional Error. To the extent the Assessment imposes Mississippi income tax on income that is not constitutionally taxable by the State (e.g., due to lack of nexus, violation of the Commerce Clause, or violation of Complete Auto Transit, Inc. v. Brady, 430 U.S. 274 (1977)), the Assessment is unlawful and must be cancelled.

5.7. Penalty Abatement. Any penalty asserted should be abated for reasonable cause under Miss. Code Ann. § 27-7-53 because Taxpayer acted with ordinary business care and prudence and relied in good faith on [professional advice / published guidance / federal determination].

6. SPECIFIC ERRORS IN THE ASSESSMENT

6.1. Adjustment No. 1 — [DESCRIPTION].

• Department's position: [summary].
• Taxpayer's position: [summary].
• Authority: [Miss. Code Ann. § ____; regulation; case].
• Correct treatment: [result, with calculation].

6.2. Adjustment No. 2 — [DESCRIPTION].

• Department's position: [summary].
• Taxpayer's position: [summary].
• Authority: [citation].
• Correct treatment: [result].

6.3. Adjustment No. 3 — [DESCRIPTION].

• Department's position: [summary].
• Taxpayer's position: [summary].
• Authority: [citation].
• Correct treatment: [result].

6.4. Penalties. Taxpayer requests abatement of all penalties for the reasons set out in Section 5.7.

6.5. Interest. Interest follows the tax. To the extent the Assessment is reduced or vacated, interest must be recomputed accordingly.

7. RELIEF REQUESTED

7.1. Taxpayer respectfully requests that the Board of Review:

• A. Vacate the Assessment in its entirety; or, in the alternative,
• B. Reduce the Assessment to $[AMOUNT], reflecting the corrections set forth in Section 6;
• C. Abate all penalties assessed;
• D. Recompute interest consistent with the corrected liability;
• E. Order any refund or credit to which Taxpayer is entitled, with statutory interest pursuant to Miss. Code Ann. § 27-7-315; and
• F. Grant such further and additional relief as is just and proper.

8. REQUEST FOR HEARING AND PROCEDURAL RIGHTS

8.1. Taxpayer requests an in-person hearing before the Board of Review pursuant to Miss. Code Ann. § 27-77-5(2). At the hearing Taxpayer intends to present:

• ☐ Documentary exhibits identified in the Exhibit List below;
• ☐ Testimony of Taxpayer or its representative;
• ☐ Testimony of fact witnesses [NAMES];
• ☐ Expert testimony of [EXPERT NAME, SUBJECT MATTER].

8.2. Taxpayer requests reasonable notice of the hearing date, location, and assigned hearing officer, and the right to receive in advance a copy of the audit work papers and all materials the Department intends to rely upon.

8.3. Taxpayer's authorized representative is:

• Name: [ATTORNEY / CPA / EA NAME]
• Bar / License No.: [NUMBER]
• Firm: [FIRM]
• Address: [ADDRESS]
• Phone: [NUMBER]
• Email: [EMAIL]

A Mississippi Power of Attorney (Form 21-002) authorizing the foregoing representative is attached as Exhibit B.

8.4. Taxpayer requests that all communications regarding this matter be directed to the authorized representative.

9. RESERVATION OF RIGHTS AND FURTHER APPEAL

9.1. Taxpayer expressly reserves the right to:

• Amend or supplement this protest as additional information becomes available;
• Raise additional legal or factual grounds disclosed in the Department's administrative record;
• Appeal any adverse order of the Board of Review to the Mississippi Board of Tax Appeals within sixty (60) days pursuant to Miss. Code Ann. § 27-77-5(4);
• Seek judicial review by petition filed in the Chancery Court of the First Judicial District of Hinds County, Mississippi (or the chancery court of the county or judicial district in which Taxpayer resides or maintains a place of business) within sixty (60) days of any adverse order of the Board of Tax Appeals pursuant to Miss. Code Ann. § 27-77-7; and
• Pursue further appellate review in the Mississippi Supreme Court.

9.2. Nothing in this protest shall be construed as a waiver of any procedural, substantive, statutory, or constitutional right.

10. VERIFICATION

STATE OF MISSISSIPPI

COUNTY OF [________________________________]

I, [NAME], being first duly sworn, depose and say that I am the [Taxpayer / authorized officer / representative] in the foregoing matter; that I have read the foregoing Protest and Written Appeal; and that the factual statements contained therein are true and correct to the best of my knowledge, information, and belief.

[________________________________]

[NAME]

[TITLE, if applicable]

Sworn to and subscribed before me this [____] day of [_______________], 20[____].

[________________________________]

Notary Public

(My Commission Expires: [_______________])

11. SIGNATURE AND SERVICE

Date: [FILING DATE]

Respectfully submitted,

[LAW FIRM NAME]

By: [________________________________]

[ATTORNEY NAME], Mississippi Bar No. [####]

Counsel for Taxpayer

[STREET ADDRESS]

[CITY, STATE ZIP]

Telephone: [NUMBER]

Email: [EMAIL]

CERTIFICATE OF SERVICE / FILING. I certify that on the date above I filed the foregoing Protest with the Mississippi Department of Revenue, Board of Review, by [email to [email protected] / U.S. mail to P.O. Box 22828, Jackson, MS 39225-2828 / hand delivery to 500 Clinton Center Drive, Clinton, MS 39056], and concurrently served a courtesy copy on the assigned auditor, [AUDITOR NAME], at [ADDRESS / EMAIL].

[________________________________]

[ATTORNEY NAME]

12. MISSISSIPPI PRACTICE NOTES

• Three-tier administrative/judicial structure. Mississippi income-tax disputes proceed (1) to the DOR Board of Review (informal, written-only or hearing); (2) to the Mississippi Board of Tax Appeals (a quasi-judicial body separate from the DOR) by written appeal within 60 days; and (3) to chancery court (Hinds County or county of taxpayer's residence/business) by petition within 60 days of the BTA's order. Each step has its own 60-day deadline, and missing any step makes the assessment final. Miss. Code Ann. §§ 27-77-5, 27-77-7.
• No bond requirement post-2014. Under the current text of Miss. Code Ann. § 27-77-7, a taxpayer is not required to post a bond or pay tax under protest as a condition of filing a chancery court appeal, unless the DOR successfully moves the chancellor for security based on a showing of jeopardy.
• Standard of review. The chancery court conducts a de novo trial on appeal from the Board of Tax Appeals, hearing the matter as a new case. The DOR's assessment is presumed correct, and the taxpayer bears the burden of proof by a preponderance of the evidence.
• Confidentiality. Mississippi tax records are statutorily confidential under Miss. Code Ann. §§ 27-3-77, 27-7-83, and 27-77-15. Filings before the BTA may, on motion, be sealed to protect sensitive taxpayer information.
• Statute of limitations. Mississippi income-tax assessments are generally barred more than 36 months after the return was filed (Miss. Code Ann. § 27-7-53), with extensions for fraud, non-filing, or written waiver. Always plead the limitations defense if any year is plausibly closed.
• Form 50-001-10. The DOR publishes a Review Board Appeal Petition form (Form 50-001-10). Use of the form is encouraged but does not displace the substantive protest.
• Federal coordination. Many Mississippi income-tax disputes mirror federal positions because Miss. Code Ann. § 27-7-15 conforms in part to the Internal Revenue Code. A federal Revenue Agent's Report (RAR) or Tax Court decision can be persuasive on the Mississippi issue but is not binding on the DOR.
• Electronic filing. Appeals are deemed timely if email-transmitted to [email protected] by 11:59 p.m. on the deadline. Always retain the email transmission confirmation.

13. SOURCES AND REFERENCES

• Miss. Code Ann. § 27-77-5 (Appeals to Board of Review and Board of Tax Appeals) — https://law.justia.com/codes/mississippi/title-27/chapter-77/section-27-77-5/
• Miss. Code Ann. § 27-77-7 (Judicial review in chancery court) — https://law.justia.com/codes/mississippi/title-27/chapter-77/section-27-77-7/
• Miss. Code Ann. § 27-77-15 (Confidentiality of taxpayer records) — https://law.justia.com/codes/mississippi/title-27/chapter-77/section-27-77-15/
• Miss. Code Ann. § 27-7-1 et seq. (Mississippi Income Tax Law) — https://law.justia.com/codes/mississippi/title-27/chapter-7/
• Miss. Code Ann. § 27-7-53 (Statute of limitations on assessment) — https://law.justia.com/codes/mississippi/title-27/chapter-7/
• Miss. Code Ann. § 27-3-77 (Confidentiality of individual tax records) — https://law.justia.com/codes/mississippi/title-27/chapter-3/section-27-3-77/
• 35 Miss. Admin. Code Pt. 101 (Rules of the Board of Tax Appeals) — https://www.law.cornell.edu/regulations/mississippi/title-35/part-101
• Mississippi DOR — Appeal Process and Hearings — https://www.dor.ms.gov/forms-resources/taxpayer-guidance/appeal-process-and-hearings
• Mississippi Board of Tax Appeals — https://www.bta.ms.gov/
• Mississippi Board of Tax Appeals — Forms and Instructions — https://www.bta.ms.gov/forms-and-instructions/
• DOR Form 50-001-10 (Review Board Appeal Petition) — https://www.dor.ms.gov/sites/default/files/General%20Forms/reviewboard_5000110FillIn%20(1).pdf
• Equifax, Inc. v. Mississippi Dep't of Revenue, 125 So. 3d 36 (Miss. Ct. App. 2012)
• Complete Auto Transit, Inc. v. Brady, 430 U.S. 274 (1977) (constitutional limits on state taxation)

Disclaimer: This template is provided for informational purposes only and does not constitute legal advice. An attorney licensed in Mississippi must review and customize this document before filing. Statutes, regulations, and procedural rules change frequently; verify all authorities at the time of filing.