John Fletcher

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John Fletcher Addresses Graduates at Delta State’s 95th Commencement Ceremony

I was honored as the President of the Delta State University Alumni Association to address the new graduates at Delta State’s 95th Commencement Ceremony last Friday. Pictured with me are DSU President William LaForge and the keynote speaker, alumnus Walt Bettinger II, CEO of The Charles Schwab Corporation.  Not pictured but also on stage was … Continue Reading

Mississippi Enacts Pass-Through Entity Income Tax Election/ SALT Cap Workaround

Mississippi recently passed a SALT cap workaround in the form of a flow-through entity election. Consistent with the roughly 26 other states having adopted similar schemes, the Mississippi bill presents several grey areas and questions that will need to be addressed through Department of Revenue guidance or possible technical corrections. H.B. 1691, signed into law … Continue Reading

Mississippi House Revisits Income Tax Phase-Out for 2022

Today the Mississippi House of Representatives filed and passed out of the Ways and Means Committee H.B. 531 which appears to represent the House leadership’s income tax elimination proposal for the 2022 session.  The bill, which is 294 pages long, appears to have the following primary features: Quantifies the amounts by which actual fiscal year … Continue Reading

Questions Submitted for Hearing on Mississippi Software Sales Tax Regulation

In anticipation of the upcoming public hearing on Mississippi’s proposed amendments to its sales tax regulation on Computer Equipment, Software and Services, Jones Walker recently submitted a letter to the Mississippi Department of Revenue summarizing a wide range of questions and issues raised by the proposal.  These questions were compiled as a result of discussions … Continue Reading

UPDATE: Mississippi Attempts to Significantly Increase Sales and Use Taxes on Internet-Based Business Services Via Regulatory Amendment

UPDATE:  In response to widespread interest in these changes, the Mississippi Department of Revenue this afternoon scheduled a public hearing on the proposed amendments.  The hearing is set for Wednesday, November 3 at 1:30. Interested parties are encouraged to identify specific questions and issues to present to the Department at the hearing. Jones Walker is … Continue Reading

Mississippi Attempts to Significantly Increase Sales and Use Taxes on Internet-Based Business Services Via Regulatory Amendment

On September 24, the Mississippi Department of Revenue filed a proposed amendment to its sales tax regulation on Computer Equipment, Software and Services.  This amendment appears to reverse longstanding sales and use tax policy with respect to remote internet-based computer services, and could result in a significant non-legislative tax increase on Mississippi businesses.  The notice … Continue Reading

How to Accidentally Renege on Tax Incentives Agreements – the Consequences of Mississippi Income Tax Repeal

Mississippi’s proposal to repeal the state’s individual income tax portends to surreptitiously renege on many of the state’s existing tax incentives agreements.  One of Mississippi’s more valuable economic development tools is the Advantage Jobs Program providing a cash rebate to certain businesses that create high-paying new jobs in the state.  The rebate is based on … Continue Reading

Mississippi House Passes Massive Sales Tax Increase on Business Inputs

Within a 24 hour period, the Mississippi House of Representatives introduced and passed a bill to repeal the individual income tax, but at a cost of massive increases in sales taxes imposed on business inputs.  H.B. 1439 would phase out the individual income tax by gradually increasing the personal exemption over an undefined period of … Continue Reading

Mississippi House bill would extend contractors tax to residential construction; Senate bill will require all contractors to register with DOR to obtain local building permit

The Mississippi House of Representatives passed HB 1142 to extend the state’s 3.5% contractor’s tax to residential construction and to require builders to obtain a material purchase certificate (“MPC”) in order to pull a local building permit. Under current law, the contractor’s tax only applies to commercial construction, and the ordinary 7% sales tax applies … Continue Reading

Mississippi House advances offer in compromise legislation

For several years Mississippi has attempted to pass legislation to authorize offers in compromise allowing taxpayers to pay less than the full amount of finally determined taxes due by them. The Mississippi Constitution prohibits any release or extinguishment of any obligation or liability to the state, except for the compromise of certain doubtful claims. On … Continue Reading

Mississippi House, Senate move to eliminate June 25 advanced sales, use and payroll tax payments

Years ago the Mississippi Legislature “borrowed” certain sales, use and payroll tax collections from a subsequent fiscal year to close a then-current year budget gap.  Because Mississippi has a June 30 fiscal year end, the legislation required certain taxpayers having a monthly tax liability of $50,000 or more to accelerate 75% of their June tax … Continue Reading

Mississippi Should Follow New Federal Treatment of PPP Deductions

When Congress recently passed Consolidated Appropriations Act of 2021, it explicitly reversed the IRS’s earlier position that expenses paid with non-taxable forgiven PPP loan proceeds could not be deducted.  As a result of this legislation, the IRS recently issued Revenue Ruling 2021-2 confirming that the act reversed its prior guidance in Notice 2020-32 and Rev. … Continue Reading

Mississippi DOR Sets July 15 Income Tax Filing Deadlines

This morning the Mississippi Department of Revenue issued a notice reversing course and setting Mississippi’s income tax filing deadlines for July 15 to coincide with the federal due dates. This applies to individual, corporate and fiduciary returns, and covers return extensions as well as estimated payments for both Q1 and Q2. We now have an … Continue Reading

Mississippi Legislature will reconvene the 2020 Legislative Session on Monday, May 18

Reposted from Mississippi Lt. Gov. Delbert Hosemann’s Facebook page: COVID-19 Update: By agreement of Lieutenant Governor Delbert Hosemann and Speaker of the House Philip Gunn, the Mississippi Legislature will reconvene the 2020 legislative session on Monday, May 18. The Legislature recessed its 125-day session temporarily on March 18, following the governor’s issuance of a state … Continue Reading

Mississippi Secretary of State Issues New Remote Notarization Order Guidance

The Mississippi Secretary of State’s office has now issued its new Remote Notarization Order Guidance following Mississippi Governor Tate Reeves’ Executive Order 1467, which modified the in-person requirement for notarization temporarily. According to the new Remote Notarization Order Guidance, effective immediately, and continuing throughout the period of the State of Emergency Proclamation as declared by … Continue Reading

Mississippi Department of Revenue Issues Updated COVID-19 Guidance, Extended Deadlines, Telework Nexus Forbearance

This afternoon the Mississippi Department of Revenue issued a notice containing updated information related to multiple extended filing deadlines and audit procedures. Among the changes are the following: Income and franchise tax filing deadlines remain extended to May 15 (no change from prior notice) Sales and use tax return filing deadlines remain unchanged, but interest … Continue Reading

MS Extends Income Tax Filing Deadlines to May 15

Mississippi extends income tax filing deadlines to May 15. This DOES NOT coincide with federal dates due to fiscal year restrictions. In consultation with Governor Tate Reeves and our legislative leadership, The Mississippi Department of Revenue is providing relief to individual and business taxpayers due to the COVID-19 pandemic. The deadline to file and pay … Continue Reading

Beware Rigid Mississippi Local Tax Deadlines

The Mississippi Department of Revenue has been very active in informing the public of tax-related developments resulting from the COVID-19 pandemic.  All taxpayers are encouraged to follow them on social media such as Facebook and Twitter as those appear to be their primary and most easily accessible means of conveying information to the public at … Continue Reading

The Taxman Cometh: Mississippi Sales and Use Taxes in a Post-Wayfair World

In December 2017, the Mississippi Department of Revenue finalized a new sales and use tax regulation addressing remote sellers and establishing a $250,000 bright-line nexus standard. The department began that process in January 2017 by issuing a proposed regulation and refined it following a public hearing held in February. The regulation positioned the state to take … Continue Reading

Mississippi Files Final Remote Seller Use Tax Regulation

“Substantial economic presence” nexus standard formally embodied in regulation. As expected after recently having filed an economic impact statement, the Mississippi Department of Revenue on November 1 filed its final remote seller use tax regulation with the Secretary of State. The new regulation will be effective December 1, 2017, and contains numerous changes from the … Continue Reading
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