MS HB686

Authorizes taxpayers to request revision of income tax returns within three years from the due date, or if an extension was granted, within three years from the date the return was filed or the final day of the extension period.

Authorizes taxpayers to request revision of sales tax assessments within 36 months from the date of assessment or from the date the return was filed, with no credit or refund allowed after the 36-month period expires.

Clarifies that no additional assessment or refund shall be made after three years from the date the Internal Revenue Service disposes of the tax liability in question when reported taxable income has been increased or decreased by the IRS.

Effective date: January 1, 2017.