License Revocation for Licensees Who Owe State Income Taxes
House Bill 600 has taken effect, requiring persons with professional licenses to file and pay their state taxes or face license revocation.
Affected under the legislation are Missouri Department of Commerce & Insurance licenses to more than 100,000 insurance producers (formerly agents and brokers) and public adjusters. (HB 600, however, does not affect bail bond agents.)
The Missouri Department of Revenue’s first sampling of insurance producers and public adjusters for compliance with HB 600 produced a significant number who have failed to pay taxes and face revocation.
Individuals who receive a Department of Revenue notice about noncompliance should call that agency at (573) 751-7200 or e-mail Income@mail.dor.mo.gov to resolve the problem. The Missouri Department of Commerce & Insurance cannot provide any assistance and will refer all contacts to the Department of Revenue.
To help licensed individuals comply, Insurance is making this informational posting. Please review the legislation at http://www.house.mo.gov/bills03/bills/HB600.htm to comply and avoid disrupting your ability to conduct insurance business. Refer to section 577.520 of the legislation.
Enforcement procedures of the Missouri Department of Revenue and the Missouri Department of Commerce & Insurance under HB 600:
Each month DIFP will send to the Department of Revenue a file of individuals newly licensed in the previous month and licenses pending renewal in the next 61 to 92 days.
Department of Revenue will compare this file to its income tax database and send notice to each licensee or new applicant not in compliance.
When individuals receiving those notices have resolved any compliance issues, the Department of Revenue will issue a Certification of Tax Compliance to them.
Ninety (90) days from the initial notices, Department of Revenue will advise DIFP of individuals still not in tax compliance.
Under the legislation, DIFP must order revocation of the license. The licensee must cease all business as a producer or public adjuster, including the solicitation of business.
All individuals whose licenses are revoked/suspended must provide DIFP with a Department of Revenue “Certification Tax Compliance Letter”as proof of tax compliance to reinstate the license.