The following is intended to provide general information concerning frequently asked questions about
taxes administered by the Mississippi Tax Commission. It is an informal interpretation of the tax law and is not
intended to serve as a rule, regulation, declaratory opinion, or letter ruling. Legislation, regulations, court
decisions, notices and announcements could affect the accuracy of this information. Please refer to the
Mississippi Code Annotated and the Mississippi Administrative Code for the most current version of the law
and administrative procedures.
Corporate and Franchise Tax FAQs
Who is required to file a corporate tax return?
All corporations, associations or entities doing business, earning income, or existing in
Mississippi are required to file a Corporate Income/Franchise Tax Return. Every
corporation, domesticated or qualified to do business in Mississippi, must file a return
even though the corporation is inactive or not engaged in business.
What is franchise tax?
A franchise tax is imposed on corporations for the privilege of doing business in this
state. Franchise tax is due annually as long as the corporation remains incorporated,
domesticated, or continues to do business in Mississippi.
I am not a franchise. Why do I have to file a franchise tax return?
Franchise tax is not based upon whether or not a corporation is a franchise. Franchise
tax is a business tax imposed on every corporation for the privilege of doing business in
How do I compute the franchise tax due?
Franchise tax is computed at $2.50 per $1000 of the value of the capital employed or
the assessed property values in this state, whichever is greater. The minimum franchise
tax due is $25.00.
What is the date of the balance sheet I should use to compute my franchise tax return?
The corporation must use the ending year balance sheet (which is the accounting year
end for the corporation) to compute franchise taxes.
How do I compute the income tax due?
The first $5000 of taxable income is taxed at 3%; the next $5000 of taxable income is
taxed at 4%; and all taxable income over $10,000 is taxed at 5%.
Does Mississippi have a minimum corporate income tax?
Does Mississippi require estimated tax payments?
Yes, every corporation with an annual income tax liability in excess of $200 must make
estimated tax payments. Estimate payments are reported on Form 83-300. Composite
partnerships report estimates on Form 83-301.
Does Mississippi require estimated payments to be submitted electronically?
What are interest and penalty charges?
If the income tax is not paid by the original due date of the return, interest is due at
the rate of 1% per month. Penalty is due at the rate of ½% per month not to
exceed a total penalty of 25%.
How does a company register to file Mississippi Corporate/Franchise Taxes?
A Mississippi registration application must be completed and submitted to the Mississippi
Do I need to apply for a corporate identification number?
No. For corporate income and franchise tax purposes, taxpayers are identified by their
federal identification number which is obtained from the IRS.
Does Mississippi require returns and payments to be submitted electronically?
What form of payment does the Tax Commission accept?
The Mississippi Tax Commission accepts your check or money order (U.S. funds only),
payable to the Mississippi Tax Commission. Payments should be mailed to the Tax
Commission at P. O. Box 23050, Jackson MS 39225.
Where do I mail my corporate income and franchise tax return?
Office of Revenue
P. O. Box 23050
Jackson, MS 39225-3050
Where do I mail my final, amended, combined or part-year corporate income and
franchise tax return?
Office of Revenue
P. O. Box 1033
Jackson, MS 39215-1033
What is the due date for corporate/franchise tax returns?
The corporate income tax return is due on or before the 15th day of the 3rd month
following the close of the taxable year.
Does Mississippi accept the federal extension?
Taxpayers requesting an extension of time to file the return must remit the tax due with a
completed Application for Extension Form 83-180 on or before the due date of the
return. The extension of time to file does not extend the time to pay the income or
franchise tax due. The federal extension form will be accepted in lieu of the state’s
Who can discuss a corporate income tax question concerning payments, adjustments,
etc. with the Mississippi Tax Commission?
General questions that do not address confidential information filed with the Mississippi
Tax Commission may be discussed with anyone. Confidential information (including any
payment received, return, adjustment, extension filed, etc.) may only be discussed with
an officer of the corporation, the preparer, or a person who has a Mississippi power of
attorney on file.
My corporation is incorporated in another state. Am I required to register with the
Mississippi Secretary of State?
What do I do if my corporation is no longer doing business in Mississippi and I want to
quit filing income and franchise tax returns?
If the corporation is registered with the Mississippi Secretary of State, then the taxpayer
should withdraw or dissolve the corporation through the Secretary of State. To
complete the withdrawal process, a final return must be filed with the Tax Commission.
The taxpayer must ensure that the corporation does not have any Mississippi assets or
income in order for the final return to be valid.
How do we amend our corporate return? What form do we use?
A complete amended return must be filed attaching the same forms as originally filed
with form 83-170. Any documentation supporting the adjustments must be included
with the amended return.
What is the statute of limitations for filing an amended return?
A taxpayer may apply to the Commission for revision of any return filed at any time
within 3 years of the due date; or, if an extension was granted, 3 years from the date
the return was filed. The 3 year period is not applicable to an IRS audit; however, no
additional assessment or refund will be made more than 3 years after the date the IRS
disposes of the tax liability in question.
Can I obtain a letter of "good standing"?
To obtain a Certificate of Good Standing, please contact the Secretary of State at
My corporation has no activity or assets; do I need to file a return?
Yes. Every corporation domesticated or qualified to do business in Mississippi must file a
return even though the corporation is inactive or does not have any Mississippi assets. A
corporation remains subject to the filing requirements until the corporation is officially
dissolved or withdrawn through the Secretary of State.
If I close my business, should I notify the Tax Commission?
Yes. A final return must be filed with the Tax Commission.
How do I file a final return?
Please mark the “Final Return” check box on the face of the form when filing your
corporate return. The return is due on or before the 15th day of the 3rd month following
the close or dissolution of the corporation.
What is the Tax Commission's position regarding nexus in Mississippi?
For Mississippi purposes, nexus is the operation of any enterprise or activity in Mississippi
for financial profit or economic gain. For more information, please review Title 35, Part
III, Subpart 08, Chapter 06 of the Mississippi Administrative Code.
Does having an employee in Mississippi create nexus for a company based in another
state which sells tangible personal property?
What is a Mississippi combined income tax return and what are the requirements I must
meet in order to file on a combined basis?
A Mississippi combined income tax return is a return where two or more members of an
affiliated group of corporations are taxable in Mississippi, and where one or more
members are taxable in another state. While each corporation will compute its
Mississippi taxable income (or loss) on a separate basis, the net business income (or loss)
computed for each member is combined to determine the net business income (or
loss) for the affiliated group.
Can a combined group determine its franchise tax on a combined basis?
No. Each corporation, whether it is a member of a combined group or not, must file a
separate franchise tax return if it is chartered to do business in Mississippi. The reporting
company in a combined group can make a payment toward the member’s franchise
tax liability using the Mississippi Application for Extension form 83-181.
For apportionment purposes, does Mississippi have a "throwback" rule?
Yes. For corporations permitted to apportion income, only those sales made within
Mississippi are required to be included in the numerator of the sales factor. However,
sales of a corporation not required to file an income tax return in another state are
considered to be from this state.
What should I do if I receive a notice of failure to file a corporate return?
If a return was filed, send a copy of the return, the canceled check (if payment was
made,) and a copy of the delinquent letter to P. O. Box 1033, Jackson MS 39215-1033.
If a return was not filed, mail the return, payment for taxes, interest, and penalty to P. O.
Box 23050, Jackson, MS 39225-3050.
Where and when do I file my corporation’s annual report?
Your annual report is filed with the Secretary of State’s office and is due April 15th.
Payments may be mailed to Secretary of State, Business Service, 700 North Street,
Jackson MS 39202. For more information, please contact the Secretary of State at
My corporation has been suspended by the Secretary of State. What do I need to do in
order to be reinstated?
In order to be reinstated, all corporate tax returns, outstanding tax liabilities, penalties
and interest must be filed and paid to the Tax Commission. If applicable, page 2 of the
Secretary of State form F0022 must be submitted to the Tax Commission.
What is the basis for suspension?
Mississippi law requires the Tax Commission to notify the Secretary of State when a
corporation or a limited liability company fails to pay and/or file any return.
How do I file if I am a Limited Liability Company (LLC)?
LLC's are classified consistent with the federal classification. If the LLC is treated as a
corporation for federal income tax purposes, then it is treated as a corporation with
Mississippi. If an LLC is treated as a partnership for federal income tax purposes, it is
considered a partnership for Mississippi.
How do I file if my corporation is an S Corporation?
For Mississippi income tax purposes, the S Corporation income tax return is for
informational purposes only. The tax is paid by the shareholder on his Mississippi
individual income tax return. A non-resident with no other income in Mississippi may
elect to file a composite return when the income is taxed and paid at the corporate
level. Once the election to file composite is made, the taxpayer must continue to file in
this manner. All S Corporations are subject to franchise tax which is taxed and paid at
the corporate level.
If I am filing an amended Mississippi return to carry-back a federal net operating loss,
what documentation should I include?
In making a claim for a net operating loss deduction, the taxpayer must file with its
amended tax return a concise statement setting forth all material and pertinent facts.
Form 83-155, Mississippi Corporate NOL and Capital Loss worksheet must be submitted
for each individual loss year.
What do I need to provide to the Mississippi Tax Commission if I claim non-business or
wholly passive investment income (non-Mississippi source income)?
For non-business income, Form 83-150 must be attached to the return that clearly states
the nature and/or source of the non-business income in order to be considered by the
Mississippi Tax Commission. A statement must be included to outline the reasons why
the income, loss, expenses, or deductions are being allocated. Wholly passive
investment income from outside Mississippi will be considered only with an attached,
What information must I provide to the Mississippi Tax Commission if I am filing an
amended return due to an IRS audit or an amended federal return?
To document adjustments made by an IRS audit, the Revenue Agent Report should be
included with the Mississippi amended return. If the adjustments were the result the
taxpayer amending the federal return, a copy of 1120 (x) should be filed with the
amended Mississippi return.
If the taxpayer files consolidated for federal purposes, a proforma amended federal
return should be provided as well as the amended consolidated federal return. A
complete amended return must be filed attaching the same forms as originally filed
with form 83-170. Any other documentation supporting the adjustments must be
included with the amended return.
Does Mississippi have a claim of right doctrine similar to the Internal Revenue Service?
How are Qualified Subchapter S Subsidiaries (QSSS) treated for Mississippi income and
A federal election to be treated as a Qualified Subchapter S Subsidiary (QSSS) is
considered an election for Mississippi purposes. The QSSS will be treated the same for
state income and franchise tax purposes. The reporting company must file a corporate
tax return on behalf of the QSSS.
Does Mississippi require the 50% depreciation to be added back to taxable income?
Yes, the bonus depreciation deduction must be added back to Mississippi taxable
income. Mississippi does not recognize the federal tax credit allowed for qualified
depreciable property acquired and placed in service during the tax year.
If I carried back a net operating loss two years for federal purposes, am I required to
carry-back the net operating loss two years for Mississippi purposes?
No. On Mississippi form 83-155, the taxpayer is required to make an election to carry-
back or carry-over the Mississippi net operating loss regardless of the federal election.
Once the election is made, it is irrevocable. If the taxpayer amends a federal return,
the taxpayer is required to file a state amended return.
Will Mississippi follow the IRS relating to paid preparer signatures?
Yes. Using the IRS requirements, Mississippi will permit paid preparers to sign original
returns, amended returns, or requests for filing extensions by rubber stamp, mechanical
device (such as signature pen), or computer software program.
If a company has to file a short period federal income tax form, does it have to file a
short period Mississippi income tax return?
What U.S. Government interest is deductible?
Interest on the obligations of the U.S., its instrumentalities, its possessions or upon
securities issued under authority of an act of Congress are wholly exempt from tax. The
term “obligations of the United States” means any U.S. Government obligation used to
finance the national debt, such as U.S. Treasury Securities including notes, bonds, or
certificates, U.S. Treasury bills or other instruments acknowledged by the U. S. Secretary
of Treasury as an obligation of the United States.
What types of taxes have to be added to federal income?
The following types of taxes must be added back to federal taxable income for
Mississippi purposes: federal and state income taxes; any taxes based on or measured
by net income; estate and inheritance taxes; gift taxes, and cigar and cigarette taxes,
gasoline taxes, and sales and use taxes if not included in business gross income, or if not
incurred as an item of expense in a trade or business.
Has Mississippi adopted the Uniform Division of Income for Tax Purposes Act (UDIPTA)?
Does Mississippi follow the Multistate Tax Commission regulations and policies?
No. Mississippi is an associate member of the Multistate Tax Commission but does not
enact the Multistate Tax Compact into state laws.
How do I obtain more information on business credits?
For a detailed listing of available incentives and credits, please refer to the tax incentive
booklet on the Tax Commission website.
Does Mississippi allow federal income tax as a business expense deduction?
What are the filing requirements for a corporation operating in Mississippi as a partner in
Every domestic or foreign partnership that derives income from property owned in
Mississippi, or business, trade, profession, or occupation carried on in the state must file a
return for each taxable year. The individual partners are subject to tax upon their
distributive share of the partnership net income (loss). The partnership net income (loss)
is computed in the same manner and on the same basis as the net income (loss) of an
individual. Deductions for contributions or gifts are allowed to the partners on their
How does my nonprofit obtain tax exempt status?
Tax exempt status [501 C (3)] is obtained through the Internal Revenue Service.