New Mo. Law Requires Revocation of Producer Licenses for Unpaid Income Taxes

Missouri’s 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 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 reportedly 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.state.mo.us to resolve the problem. The Department of Insurance cannot provide any assistance and will refer all contacts to the Department of Revenue.

To help licensed individuals comply, MDI is making this informational posting. Individuals can review the legislation at http://www.house.mo.gov/bills03/bills/HB600.htm to comply and avoid disrupting their 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 Insurance under HB 600:

Each month the Department of Insurance 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 licensees or new applicant not in compliance.

When individuals receiving those notices have resolved any compliance issues, the Department of Revenue will issue letters to them.

Ninety (90) days from the initial notices, Department of Revenue will advise the Department of Insurance of individuals still not in tax compliance.

Under the legislation, the Department of Insurance must order revocation of the license. The licensee must cease all business as a producer or public adjuster, including the solicitation of business. This order will indicate the licensee has 12 months from the date of the revocation to comply with Department of Revenue requirements for reinstatement; otherwise, the licensee will have to qualify by examination to obtain a new license.

All individuals whose licenses are revoked must provide the Department of Insurance with a Department of Revenue “Certification Tax Compliance Letter”as proof of tax compliance to reinstate the license. MDI will notify the individual by letter that the license has been reinstated and will continue to its normal renewal date.

For further information, contact: Randy McConnell at (573) 526-4845.

Topics Legislation Profit Loss Missouri