Mississippi Administrative Code
Title 35 - Department of Revenue
Part 4 - Sales and Use Tax
Subpart 10 - Construction and Oil Field
Chapter 01 - Construction Contractors
Section 35-4-10-01-210

In the instance a contractor or subcontractor incorrectly uses an MPC number to purchase non-component materials or services, and it is determined by the Commissioner that there is intentional disregard of the law or done with intent to defraud, there will be a fifty percent (50%) penalty assessed. This penalty will be used when the contractor or subcontractor misuses an MPC number or when an audit of taxpayer records reveals an attempt to disguise or hide the misuse of an MPC number. This penalty will not be assessed if the taxpayer can prove reasonable cause for failure to comply.