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Examples of the basic backup schedules are details of otheradditions or other deductions as requested on the computationof net income schedule, details of other additions or otherdeductions as requested on other statements made a part of thereturn, details of other current assets and other assets, anddetails of other current liabilities and other liabilities on thebalance sheet as are normally included with the federal return.TAXPAYER ACCESS POINT (TAP)TAP provides online access to your tax account information24 hours a day, 7 days a week. TAP is free and convenient!Users of TAP are able to: Make electronic payments of returns and assessments; view previously filed returns and amended returns; make address changes and view tax correspondence; view recent account activity, and; register a new business or add accounts to the business;The total tax due on the combination return must be paid in fullno later than the 15th day of the 4th month after the end of thetax year.Third Party Access for Tax PractitionersTax practitioners can have TAP access to account informationfor each of your clients - from one login. First, create your ownTAP account (only one per FEIN). Once you are registered inTAP, select "Add Access to Existing Account."Payment Options: Online Payments: To pay online, go to www.dor.ms.gov,click on Taxpayer Access Point (TAP) and follow theinstructions. Without a MARS account or a TAP login, usersare able to make estimate payments online.Your client (taxpayer) must provide you the Letter ID andAccount ID in order for you to have access to their accounts.All accounts you set up for third party access are found underthe "Other Taxpayers' Accounts" tab in TAP. For moreinformation on TAP, visit our website at www.dor.ms.gov. Users cannot file Corporate Income and Franchise TaxReturns in TAP. However, tax preparers have the ability to filethe tax returns electronically through an authorized softwareprovider. A copy of the complete federal return must besubmitted electronically. Please visit our website atwww.dor.ms.gov for additional information on how to fileMississippi returns on-line and how to access approved online software providers.Check or Money Order Payments: To pay by check ormoney order, complete the payment voucher (Form 83300), make the check or money order payable to theDepartment of Revenue and mail both to P.O. Box 23192,Jackson, MS 39225-3192.Every corporate taxpayer with an annual income tax liability inexcess of 200 must make estimated tax payments. At least90% of the current income tax liability must be paid bysubmitting quarterly payments. The remaining of the balanceis due by the due date of the return. The due dates forestimated tax payments are:The return must be signed by the president, vice president orother officer of the corporation. A receiver, trustee or assigneemust sign any return which he/she is required to file on behalfof a corporation. Anyone who prepares the return but does not charge thecorporation should not complete the paid preparer section.Generally, anyone who is paid to prepare the return mustlegibly sign it and must also furnish the preparer taxidentification number (PTIN) issued by the Internal RevenueService (IRS).15th day of the 4th month after year end;15th day of the 6th month after year end;15th day of the 9th month after year end, and;15th day of the 12th month after year end.The payment is due on the next business day if the date fallson a Saturday, Sunday or legal holiday.Penalties may apply if the corporation does not make therequired estimated tax payments by the due date. Use Form83-305 to determine the amount of interest and penalty onunderestimate. See detailed instructions for the form under the“Specific Instructions” for Form 83-305 section of this booklet.To be a complete return, the return should contain all therequisite general information, as well as all summary taxinformation and the basic back up schedules. Examples of therequired general information are complete name, currentaddress, FEIN, officer information and signature and otherinformation relating to the filing entity as requested on page 2of Form 83-105. Late Payment: Interest and penalty are charged on taxespaid late even if an extension of time to file is granted. Theinterest is assessed from the due date until paid and iscomputed at 1/2 of 1% per month.The penalty imposed for failure to pay the tax when due is1/2% per month not to exceed 25% in the aggregate.Examples of the summary tax information are the frontpage of the return, the franchise tax schedule, the computationof net income, the computation of the apportionment factor (ifapplicable), the balance sheet, nonbusiness income schedule(if applicable), the direct accounting income statement (ifapplicable), schedules showing the computation of any taxcredit taken (such as jobs credit) and schedules showing thecomputation of any major items on the return. 5Late or Non-Filer: Penalties are imposed for failure to filea return when due on the total amount of the tax deficiencyor delinquency. The penalty is 5% per month not to exceed25% in the aggregate. The penalty shall not be less than 100 for income tax for failure to file a return.

employed in Mississippi in excess of 100,000. (Minimum tax of 25).Incomplete Returns: A corporation that does not file acomplete return or does not file a return within theprescribed time may be subject to a penalty of 25 perrequired attachment or schedule up to a maximum of 500 per return.Income Tax: 0% on the first 4,000 of taxable income and 3% onthe next 1,000, 4% on the next 5,000 of taxable income and5% on all taxable income in excess of 10,000.The purpose of this penalty provision is to ensure that sufficientinformation is disclosed on the return. If major schedules (suchas the balance sheet) are omitted or incomplete, or if schedulesare consistently omitted or incomplete, then the penalty will beimposed. The more severe or consistent the omission, the morelikely it is that the penalty will be imposed. Refer to the Required“Forms and Schedules” section of this booklet for additionalinformation on what constitute a complete return.AMENDED RETURNFile an amended return to: make adjustments to tax;claim a refund due to an adjustment to tax;claim a net operating loss (NOL) carryback deduction;report federal adjustments (1120X), and;report IRS audit adjustments (RAR)When to File: A taxpayer may apply to the Department forrevision of any return filed at any time within 3 years of the duedate; or, if an extension was granted, 3 years from the date thereturn was filed. The 3-year period is not applicable to an IRSaudit; however, no additional assessment or refund will bemade more than 3 years after the date the IRS disposes of thetax liability in question.Direct or Separate Accounting Method: Producers of mineralor natural resource products and construction contractors arerequired to use direct accounting in computing their taxableincome to this state. For more details, see Title 35, Part III,Subpart 08, Chapter 06 of the Miss Administrative Code. Othertaxpayers may not employ a direct accounting or separateaccounting method unless they have obtained written authorityfrom the Commissioner to do so. Refer to the “Producers ofMineral or Natural Resource Products” section of this booklet foradditional information.Net Operating Loss (NOL): Form 83-155 must be filed withan amended return in order to claim a net operating lossdeduction. Form 83-155 is used to make an irrevocableelection to carryback or carry forward the current year NOL. Formore information concerning net operating losses, see the “NetOperating Loss (NOL) & Capital Loss” section of this booklet.Internal Revenue Service Audit (RAR): To documentadjustments made as a result of an IRS audit, the RevenueAgent Report should be attached to the Mississippi amendedreturn.Returns should be filed on the basis of the 12-month accountingperiod established by the corporation. A corporation on a fiscalyear basis must enter the beginning and ending dates of thetaxable year in the appropriate spaces on the return. Noaccounting period, other than calendar year, will be recognized,unless before its close it was definitely established as anaccounting period by the taxpayer and the books of suchtaxpayer were kept in accordance therewith.Amended Federal: To document adjustments made as aresult of an amended federal return, a copy of the amendedfederal (Form 1120X) should be attached to the amendedMississippi return. If a consolidated amended federal returnwas filed, please attach an amended Pro-Forma FederalReturn, as well as the amended consolidated federal return tothe amended state return.All dollar amounts should be rounded to the nearest whole dollar(no pennies). Round down to the next lower dollar amountsunder .50 and round up to the next higher dollar amounts of .50 and over. For example: 2.15 becomes 2.00; 4.75becomes 5.00; and 3.50 becomes 4.00.Any other documentation supporting the adjustments madeshould also be included with the amended Mississippi return.Attach a copy of the original filed return. Overpayments thatare not refunded will be applied to the next period for which thecorporation makes a filing.Taxpayers are required to maintain an accurate and completeset of records and other information necessary for theDepartment to determine the correct amount of tax due. Therecords and other information must be available for inspectionby the Department upon request at a reasonable time andlocation. Refusal or delay by the taxpayer to p r o v i d edocumentation upon the Department’s request will result in anassessment being made from any information available, whichshall be prima facie correct.Franchise Tax: 1.75 per 1,000 of capital, or fractional partthereof, of capital surplus, undivided profits and true reserves6

FRANCHISE TAXThe franchise tax is measured by the value of capital used,invested or employed in the exercise of any power, privilegeor right enjoyed by the corporation within Mississippi. Themode of measurement is the amount of capital of thecorporation employed or so situated as to be privileged to beemployed in this state. In determining the amount of capital,the net book value as regularly employed in conducting theaffairs of the corporation should be accepted as prima faciecorrect as to the true capital of the corporation, except wherethe Commissioner determines that the book value does notproperly reflect capital employed in this state and in thatsituation the Commissioner's determination of capital shouldbe prima facie correct.Multistate Taxpayers: Lines 9 through 12 of Form 83-110must be completed by multistate corporations doingbusiness both within and without Mississippi. Total capital ofa multistate corporation is apportioned to Mississippi in theratio that real and tangible personal property owned inMississippi and gross receipts from business carried on inMississippi bears to the total real and tangible personalproperty owned by the corporation and gross receiptswherever located and from wherever received.The amount of capital apportioned to Mississippi is computedonline 13 of Form 83-110. The section of Form 83-110concerning the assessed values of all real and personalproperty in Mississippi must be completed by allcorporations. Miss. Code Ann. § 27-13-9 and § 27-13-13,provide that the amount of the determined capital inMississippi should in no case be less than the assessedvalue of the Mississippi property of the corporation for theyear preceding the year in which the return is due.Form 83-110 must be completed by all corporations to indicatethe amount of capital of the corporation. All reserves that donot represent definitely known and fixed liabilities must beconsidered as elements of capital of the corporation. Amountsdesignated for payment of dividends may not be excludedunless such amounts have been definitely and irrevocablyplaced to the credit of the stockholder, subject to withdrawalon demand. Sums representing debts, notes, bonds,mortgages due and payable, depreciation reserves, bad debtreserves, or reserves representing valuation accounts may beexcluded (unless between affiliated companies orshareholders).Taxable capital is calculated on lines 15 through 18 of Form83-110. The amount of taxable capital shown on line 18 shouldbe entered on line 1, Form 83-105.For tax years ending on or after December 31, 2001, theproperty and receipts of flow-through entities must beincluded in a multistate corporate partner’s computation ofthe apportionment ratio applied to the capital base. Theassessed value of property of flow-through entities must beincluded in a multistate corporate partner's assessed valueof property when determining the alternate capital base.Holding Corporation: A holding corporation, as defined inMiss. Ann. Code § 27-13-1(i), is (1) any corporation owning atleast eighty percent (80%) of the value of capital stock and atleast eighty percent (80%) of the combined voting power of allclasses of capital stock of another corporation and (2) derivingat least ninety-five percent (95%) of its gross receipts fromdividends, interest, royalties, rents, services provided tomembers of an affiliated group (as defined in Section 27-737(2)(d)) to the extent of the cost of providing such services.Per Miss. Ann. Code §27-13-1(i), in the case of a holdingcorporation, the value of the capital used, invested oremployed in this state shall exclude that portion of the bookvalue of the holding corporation’s investment in stock orsecurities of its subsidiary corporation using the ratio between(1) the holding corporation’s investment in stock or securitiesof its subsidiary corporation and (2) the holding corporation’stotal assets. Such ratio shall then be applied to the total capitalstock, surplus, undivided profits and true reserves of theholding corporation in order to arrive at the amount of theexclusion. The holding company exclusion is computed on line7 of Form 83-110 and a schedule of computation must beattached to the return for the exclusion.7

INCOME TAXGenerally, all domestic and foreign corporations havingincome from sources within Mississippi must complete Form83-122, which makes adjustments for additions to anddeductions from federal ordinary income due to differences infederal and Mississippi laws, to arrive at net income (loss) forstate purposes.ARMS- LENGTH TRANSACTIONSThe state definition of "arms-length" is not tied to that of thefederal definition. See Miss. Code Ann. § 27-7-9(j)(6). TheCommissioner can adjust a transaction when income hasbeen shifted between related parties and/or taxes have beenavoided in this state.INSTALLMENT SALESMississippi does not follow federal rules concerning installmentsales. Gains from the sale of casual property will berecognized in the year of the sale. However, the tax on the gainmay be deferred. Deferred taxes are generally paid as theproceeds from the sale are received. However, the followingwill result in acceleration of payments:Gains from the sale of certain stocks in domestic entities arenot recognized as a part of income. However, the gain mustbe reduced by losses from the sale of certain stocks indomestic entities if the losses were incurred in the year of thegain or within the two years preceding or subsequent to thegain. See Miss. Code Ann. § 27-7-9(f)(10). Transfer, disposition, sale or disposal of the note in anymanner will result in deferred tax payments becomingimmediately due and payable. Liquidation, dissolution, withdrawal from this state andcertain merger transactions will result in deferred taxpayments becoming immediately due and payable.Taxpayers who elect the installment method for federal incometax purposes should include as a part of their return both aFederal Form 6252 and a schedule of any differences betweenthe federal and Mississippi amounts.Mississippi has not adopted federal provisions related toExtraterritorial Income Exclusion. The amount related to thisexclusion of income on the federal return must be addedback to the Mississippi income tax return prior to theapportionment of income. The proper placement for thisMississippi adjustment to federal income is on Form 83-122,line 7 titled "Other Additions Required by Law". A copy ofFederal Form 8873 should be attached to the Mississippireturn when this adjustment is being made for federalpurposes.Taxpayers are required to add back the following to itscomputation of net income:In addition, a FSC (Foreign Sales Corporation) that isorganized under the laws of a U.S. territory is treated as adomestic corporation and, thus, dividends received from itare considered apportionable business income. Failure to comply with the necessary filing requirements. Intangible expenses and costs and interest expenses andcosts in relation to or in connection with the direct or indirectmaintenance or management, ownership, sale, exchangeor other disposition of intangible property. Royalty, patent, technical and copyright fees, licensing feesand other similar expenses.Total Assignment of Income: If the business activity inrespect to any trade or business of the corporation occurswithin this state, and if by reason of such business activity thecorporation is not taxable in another state, the total net income(loss) of the corporation is assigned to Mississippi. Expenses and costs associated directly or indirectly withfactoring transactions or discounting transactions.Intangible property includes patents, patent applications, tradenames, trademarks, service marks and similar types ofintangible assets.Apportionment of Business Income: If the businessactivity in respect to any trade or business of a taxpayeroccurs both within and without this state, and if by reason ofsuch business activity the taxpayer is taxable in anotherstate, the portion of the net income (loss) arising from suchtrade or business which is derived from sources within thisstate, should be determined by apportionment in accordancewith the formulas prescribed by Title 35, Part III, Subpart 08,Chapter 06 of the Miss. Admin. Code unless prescribedotherwise. In such case, the taxpayer must complete Form83-125. Multistate contractors use Form 83- 124.Limitations: The adjustment will not apply to such portion ofintangible expenses, interest expenses and costs which arenot with a related member; or the related member is notprimarily engaged in the acquisition, use, maintenance,management, ownership, sale, exchange, or other dispositionof intangible property; and the transaction(s) were done for avalid business purpose.8

Mississippi law does NOT authorize combined reporting forfranchise tax; therefore, separate returns are required of allcorporations c

tax credit from January 1, 2022, to January 1, 2026. Senate Bill 2858 (2016 Legislative Session) - Miss. Code Ann. §27-7-5 and §27-7-18 Beginning with tax year 2018, the 3% tax rate on corporate income tax will be phased out over a five-year period ending with tax year 2022 as follows: Tax Year 2018 . First 1,000 @ 0% and the next 4,000 @ 3%