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Home » News » Senator Will Kraus Calls for Investigation of...

Senator Will Kraus Calls for Investigation of Department of Revenue

Senator Will Kraus Calls for Investigation of Department of Revenue

April 11, 2014

State Sen. Will Kraus, R-Lee’s Summit, recently joined with fellow legislators and members of business organizations from around to the state to bring to light certain practices executed by the Department of Revenue (DOR) that are unfair and potentially detrimental  to Missouri businesses.

“There have been instances in this state when DOR has targeted small business owners for sales taxes they never collected,” said Sen. Kraus. “This practice of ‘notification by audit’ is back-handed at best, destructive at worst. It has the potential of putting some owners out of business.”

The DOR has recently begun re-interpreting court rulings and statues to re-define what businesses collect sales tax and who is exempt. One of the biggest areas concerns “places of entertainment” which the department has extended to include gymnastics and cheer programs for youth.

“The department has not only changed the definition of entertainment,” continued Sen. Kraus, “they have failed to notify these businesses of the change and then audited the businesses looking for back taxes.”

Both chambers of the General Assembly have passed legislation to the other body regarding what businesses should collect sales tax, how the department should notify those businesses and who has the burden of proof when there is a dispute.

Senator Kraus has called on the Missouri Senate President Pro Tem to ask a Senate committee to investigate DOR’s practices.

“What is most troubling is that the department has failed to testify at any of the bill hearings on this issue during session,” said Sen. Kraus. “It is time they were held accountable and forced to answer tough questions.”

For more information on this issue or any of Sen. Kraus’ sponsored legislation, please visit www.senate.mo.gov/kraus.

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