MS HB892

Establishes a three-year examination period for income, franchise, and sales tax returns from the due date or filing date, whichever is later, with examination completion required within one year after the three-year period expires if taxpayer is notified during that period.

Exempts from the three-year limitation returns where the taxpayer failed to file, false or fraudulent returns with intent to evade tax, written agreements between commissioner and taxpayer to extend examination, and returns with extension requests granted.

Allows the Department of Revenue to be estopped from collecting additional sales taxes if a taxpayer used a method previously audited without additional tax due, provided the same method was used, no statutory or regulatory changes occurred, and the taxpayer detrimentally relied on the prior audit result.

Requires taxpayers to maintain accurate and complete records available for inspection, with refusal or delay to provide documentation resulting in assessment being made from available information deemed prima facie correct.

Effective January 1, 2013; does not affect refund claims, assessments, appeals, or suits for tax periods beginning before the effective date.