Mississippi Tax Relief Help: OIC, Liens & Levies

Owe Mississippi state taxes or received a notice from the Mississippi Department of Revenue (MS DOR)? Do not guess your next move. We review your Mississippi tax balance, notice, deadline, payment options, and collection risk so you know what to do next.

Get Mississippi Tax Relief Review

See Mississippi Tax Relief Options

No guarantee of outcome. We will tell you if settlement is not realistic. A review by phone: (888) 260-9441

Reviewed by William McLee, Enrolled Agent

Last reviewed: June 27, 2026

Reviews content for accuracy against official sources. About our review process

Received an assessment notice, tax lien, bank levy, wage garnishment, or demand letter from Mississippi?

These are not normal bills.

Deadlines and collection risk matter.

Check My Mississippi Collection Risk

Speak with a tax relief specialist: (888) 260-9441

Mississippi Tax Relief Overview

Owing Mississippi state taxes is different from owing the IRS. The Mississippi Department of Revenue (MS DOR) has its own rules, deadlines, and collection tools. Federal tax relief options do not automatically apply to Mississippi state tax debt.

Important: Mississippi Generally Does Not Abate Interest

Unlike some states, Mississippi generally does not abate (waive) interest on unpaid tax, even when penalties are waived. Interest continues to accrue at 0.5% per month (6% annual rate) from the original due date until paid in full, with no stated cap on the total interest. This means your balance can keep growing every month until the debt is resolved.

Depending on your situation, you may need one or more of the following:

An Offer in Compromise to settle for less than you owe (Mississippi DOES have an OIC program)
A payment plan to pay over time
An appeal if you disagree with the assessment (3-tier system, 60 days each)
Penalty relief if penalties make the balance impossible to pay
Lien resolution or levy resolution if collection action has started
Filing help if you have unfiled Mississippi tax returns

If you run a business in Mississippi and owe sales tax or withholding tax, the stakes are higher. Under Miss. Code Ann. § 27-65-55 and § 27-7-307, owners with 10% or more ownership who exercise fiscal management responsibility can be held personally liable for unpaid trust fund taxes.

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Mississippi Tax Relief Options at a Glance

Option	What It Does	Best For	Key Deadline / Note
Offer in Compromise	Settle tax debt for less than the full amount	Cannot pay full balance; liability is enrolled as a lien; tax years 4+ years old	20% or $100 down payment required; 4-year minimum age for tax periods
Payment Plan	Pay balance over time via installments	Individuals owing $75–$3K (12 mo); businesses (33% down + 6 mo — confirming with DOR)	Form 71-661; interest continues at 0.5%/mo
Penalty Relief	Request waiver of penalties for reasonable cause	Penalties are large; had illness, disaster, or records loss	Written request required; interest generally not abatable
Appeal	Challenge the assessment through the 3-tier system	You disagree with the amount owed and have proof	60 days at each tier (Review Board → BTA → Chancery Court)
Lien Release	Remove public tax lien from state registry	Lien enrolled but the balance was paid or OIC accepted	MS DOR must release within 15 working days of full payment
Levy/Garnishment Help	Respond to a bank levy or wage garnishment	Bank account frozen or wages being garnished	Act immediately — up to 25% of wages

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What Mississippi Tax Notice Did You Receive?

Select your notice type for a quick explanation of what it means and your options.

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Not Sure Where to Start?

We can review your Mississippi tax notice, balance, and deadlines — and explain your options in plain English. Call (888) 260-9441 or request a free review. We will tell you if the settlement is not realistic.

Get a Free Mississippi Tax Relief Review

No pressure. No guarantee. Just a clear review of your options.

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What the Mississippi Department of Revenue Can Do to Collect

If you owe Mississippi state taxes and do not address the balance, the MS DOR has a range of collection tools. Not every case reaches the most serious actions, but the longer a balance goes unpaid, the more options the state may use. Collection actions may begin 60 days after the Department mails an assessment notice.

Add Penalties and Interest

Late filing penalty: 5% per month of tax deficiency, not to exceed 25%, with a $100 minimum for income tax. Late payment penalty: 0.5% per month, not to exceed 25%. Interest: 0.5% per month (6% annual), with no stated cap.

Send Collection Notices

The MS DOR sends a series of notices before taking enforced collection action. Ignoring these notices can lead to more serious steps. An assessment notice triggers a 60-day window before collection may begin.

File a Notice of Tax Lien

A Notice of Tax Lien is enrolled in the Mississippi Uniform State Tax Lien Registry. It constitutes a judgment and is valid against mortgagees, purchasers, and other creditors. Liens last 7 years and can be re-enrolled indefinitely.

Garnish Wages

The MS DOR can garnish up to 25% of gross wages. The garnishment notice is sent to the employer, who must withhold money from paychecks until the tax debt is paid in full.

Levy Bank Accounts

The MS DOR may levy bank accounts for unpaid taxes. The bank freezes funds in the account on the day of the levy, up to the amount of the tax debt plus interest and penalties. This is a one-time levy — new deposits after the levy date are not affected.

Issue Collection Warrants

The Commissioner may issue warrants for collection, authorizing seizure and sale of property anywhere in the state. The tax lien also serves as authority for writs of execution, attachment, and garnishment.

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Mississippi Offer in Compromise (OIC)

Yes, Mississippi has an Offer in Compromise (OIC) program. Under Miss. Code Ann. § 31-19-29, the Governor, on the advice of the Commissioner of Revenue, may settle any doubtful claim for taxes collected by the Department of Revenue. This is one key difference from some neighboring states that do not have OIC programs.

What Is a "Doubtful Claim"?

A "doubtful claim" eligible for OIC includes finally determined tax liabilities that have been enrolled as a lien on the Mississippi Uniform State Tax Lien Registry, where collection has not occurred through the ordinary collection process.

OIC Requirements and Down Payment

Requirement	Details
Down Payment	20% of the offer amount or $100, whichever is greater. This payment is non-refundable and is applied toward the liability regardless of whether the OIC is accepted.
Tax Year Age	OIC applications for tax years or periods less than 4 years old are not accepted.
Financial Documentation	Applicants must provide 12 months of bank statements, 3 most recent pay stubs, a credit report from the last 30 days, proof of income sources, and detailed asset and liability schedules.
Waiver	A notarized Waiver of Confidentiality is required. Applications lacking this will not be accepted.
Lien Release	Tax liens are released only after the OIC is accepted, and the full offered amount is paid.
Discretionary	An OIC may be declined where the Commissioner or Governor determines that acceptance is not in the best interest of the State.

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Where to Submit an OIC Application

Completed OIC applications should be mailed or hand-delivered to:

Office of Tax Enforcement, P.O. Box 23338, Jackson, MS 39225-3338

Or delivered to the nearest MS DOR District Office.

See If a Mississippi OIC Makes Sense

An Offer in Compromise can be a powerful tool, but not everyone qualifies. The tax periods must be at least 4 years old, and you must demonstrate that collection through ordinary means is unlikely. We will tell you if an OIC is realistic for your situation.

See If a Mississippi OIC Makes Sense

No guarantee of acceptance. The Governor and Commissioner make the final decision.

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Mississippi Tax Payment Plans

If you cannot pay your Mississippi state tax balance in full, a payment plan (installment agreement) may be an option. Mississippi offers different plans for individuals and businesses.

Important: Interest Continues During Payment Plans

Interest continues to accrue during an installment agreement at the rate of 0.5% per month (1/2% per month) on the outstanding balance. Unlike some other liabilities, interest is generally not abatable in Mississippi even under a payment plan. An installment agreement may be terminated if any payment is not made timely or if the taxpayer fails to pay any other tax liability when due.

Individual Payment Plans (Form 71-661)

Requirement	Details
Debt Range	At least $75 but not more than $3,000 in income tax.
Term	12 months (maximum).
Qualification	Must have filed all required income tax returns and paid all taxes due for the past five years. Must not have previously entered into an installment agreement during the past five years.
How to Apply	Submit Form 71-661.
Interest	0.5% per month on outstanding balance (no stated cap).
Default	Plan may be terminated for late payment or failure to pay other tax liabilities when due.

Extended Plans for Larger Individual Debts

For individual tax liabilities exceeding $3,000, a 60-month installment agreement may be available if the taxpayer has an approved IRS installment agreement for the same tax year. A copy of the approved IRS installment agreement must be attached.

Business Payment Plans

For business tax liabilities, published guidance describes:

A 33% down payment
Remaining balance paid over 6 months (6 equal installments)

Note: this specific figure could not be independently confirmed on an official DOR page or in the current Form 71-661 instructions during this review. Please confirm directly with DOR before treating this as final.

Important: Bankruptcy Cases

Bankruptcy cases are not eligible for installment agreements. If a taxpayer is in bankruptcy, they should see the form instructions for alternative procedures.

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See If a Mississippi Payment Plan Makes Sense

A Mississippi payment plan may help if you cannot pay in full, but interest continues to accrue. The right move depends on your balance, income, assets, and whether collection has already started. We will tell you if the settlement is not realistic.

See If a Mississippi Payment Plan Makes Sense

No guarantee of approval. MS DOR makes the final decision.

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Which Mississippi Tax Relief Option Fits Your Situation?

Option	Best If...	Deadline	Cost	Source
Offer in Compromise	You cannot pay the full balance, and the tax periods are at least 4 years old; the liability is enrolled as a lien	None, but older tax periods (4+ years) are required	20% or $100 down (whichever is greater), non-refundable	MS DOR OIC Application
Payment Plan	Individual: owes $75–$3K, filed all returns for the past 5 years, no prior plan in the past 5 years. Business: can afford 33% down.	Apply before the collection action escalates	No fee; interest continues at 0.5%/mo	Form 71-661
Penalty Relief	Penalties make the balance unpayable, and you have reasonable cause (illness, disaster, etc)	Submit a written request with a reasonable cause explanation	No fee	MS DOR
Appeal	You disagree with the assessment and have evidence to support your position	60 days at each tier (Review Board → BTA → Court)	No filing fee	MS DOR Appeals
Lien / Levy Help	A lien has been enrolled, or your bank account/wages are being garnished	Act immediately — collection may begin 60 days after the assessment notice	May require full payment or negotiation	MS DOR Compliance FAQs

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Mississippi Penalty Relief

Penalty relief is different from a payment plan. A payment plan lets you pay over time. Penalty relief asks Mississippi to reduce or remove penalties when allowed under state rules.

Mississippi generally requires a written request for penalty abatement (waiver) sent to the Mississippi Department of Revenue. The request must include the taxpayer's full name, address, taxpayer identification number, relevant tax periods, and a detailed explanation of reasonable cause.

What Qualifies as Reasonable Cause?

Reasonable cause for penalty abatement may include:

Serious illness
Natural disasters
Unintentional loss of essential financial records
Other circumstances demonstrating that the failure to comply was not due to willful neglect

Important: Interest Generally Is Not Abatable

Even where penalties are waived, interest on unpaid tax generally is not eligible for abatement in Mississippi. Interest continues to accrue at 0.5% per month from the original due date until paid in full, with no stated cap. Even if penalties are waived, the underlying tax and interest must still be paid.

Mississippi Penalty and Interest Rates

Type	Rate	Maximum	Citation
Late Filing Penalty	5% per month of tax deficiency	25% aggregate; $100 minimum for income tax	Miss. Code Ann. § 27-7-53(4)
Late Payment Penalty	0.5% per month of tax due	25% aggregate	Miss. Code Ann. § 27-7-53(5)
Interest	0.5% per month (6% annual)	No stated cap — continues until paid in full	Miss. Code Ann. § 27-7-51(6)(e)

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Where to Submit Penalty Abatement Requests

Penalty abatement requests can be mailed to:

Mississippi Department of Revenue, P.O. Box 1033, Jackson, MS 39215

Or submitted by phone at (601) 923-7700.

Approval is discretionary. No guarantee of penalty waiver.

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Mississippi Tax Appeals: 3-Tier System

Mississippi has a three-tier appeal system for tax disputes. Each tier has a strict 60-day deadline (except for permit or tag revocations, which have a 30-day deadline). Missing a deadline at any tier can severely limit your ability to challenge the assessment.

60-Day Deadline at Each Tier

Each appeal tier has a 60-day deadline from the date of the mailed written notice or order. Missing a deadline can result in the assessment being final at that level. Do not wait.

Tier 1: Review Board

Taxpayers aggrieved by an assessment of tax, denial of a refund claim, denial of a waiver of tag penalty, or denial of tax credits/incentives must file an appeal with the Review Board within 60 days from the date the agency mailed or delivered written notice.

Appeals for suspension, surrender, seizure, or revocation of a permit, tag, or title must be filed within 30 days.

Appeals can be filed online through Taxpayer Access Point (TAP), by email to ReviewBoard@dor.ms.gov, by mail, or hand-delivered to the Review Board office at 500 Clinton Center Drive, Clinton, MS.

The Review Board issues an order after the hearing and mails it to the taxpayer. (A specific order-issuance deadline for the Review Board could not be confirmed in statute during this review and has been removed — see the 9-month Board of Tax Appeals deadline below for the closest confirmed figure.)

Tier 2: Board of Tax Appeals

If a taxpayer disagrees with the Review Board's decision, an appeal must be filed with the Mississippi Board of Tax Appeals within 60 days from the date the Review Board order is mailed.

The Board of Tax Appeals is an independent agency separate from the Department of Revenue that provides impartial review of tax disputes.

Hearings are held in Jackson and follow a structured but less formal procedure than court trials.

If the Board of Tax Appeals does not issue an order within nine (9) months of the hearing, the taxpayer may treat this as a deemed denial and appeal to the chancery court (Miss. Code Ann. § 27-77-5(6)(e)).

Tier 3: Chancery Court or Circuit Court

If the taxpayer disagrees with the Board of Tax Appeals ruling, they may appeal to the Mississippi Chancery Court or Circuit Court within 60 days from the date of the written order.

Representation at Appeals

Taxpayers are not required to be represented but may choose to be represented by an attorney, accountant, employee, or other person of their choosing. (The requirement that a Power of Attorney form must be included with the Appeal Petition could not be confirmed on the current DOR appeals page during this review — flagged for verification.)

Source: MS DOR Appeal Process and Hearings | Miss. Code Ann. § 27-77-5

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Review My Mississippi Notice

If you received a Mississippi tax assessment, review the 60-day appeal deadline before doing anything else. Missing an appeal deadline can limit your options.

Review My Mississippi Notice

This is not legal advice. Consult a qualified representative for your specific situation.

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Mississippi Tax Liens

A tax lien is a public claim filed by the state against your property. In Mississippi, tax liens are enrolled in the Mississippi Uniform State Tax Lien Registry, which was established by SB 2026 (2014). This replaced the prior system of filing liens individually with circuit clerks in each county.

How Mississippi Tax Liens Work

Feature	Details
Duration	7 years from the date of enrollment in the registry.
Re-enrollment	No limit on the number of times the MS DOR may re-enroll (refile) notices of tax liens. Each re-enrollment extends the lien for another 7 years.
Priority Loss	A lien that is reenrolled after the lapse of the 7-year period loses the priority it had prior to its expiration.
Effect	Enrollment constitutes a judgment and is valid as against mortgagees, pledgees, purchasers, judgment creditors, and other persons from the time of enrollment.
Enforcement	The lien serves as authority for writs of execution, attachment, garnishment, and collection warrants.
Release	Upon full payment, the MS DOR must file a notice of release within 15 working days.

Editorial note: a 2024 bill (HB 1595) would have capped DOR's collection window on liens enrolled before 7/1/2024 at 7/1/2034 and broadened the OIC "doubtful claim" definition. We confirmed against the current Mississippi Code that this bill did not pass — the "re-enrolled indefinitely" language above remains accurate. Worth a periodic re-check in future sessions.

Types of State Tax Liens in Mississippi

Multiple types of state tax liens may be filed in the registry:

Income tax lien (§ 27-7-55)
Estate tax lien (§ 27-9-35)
Corporate franchise tax lien (§ 27-13-29)
Sales tax lien (§ 27-65-57)
Tobacco tax lien (§ 27-69-41)
Alcoholic beverage tax lien (§ 27-71-3223)

Source: Mississippi Department of Revenue | SB 2026 (2014) — Lien Registration Act

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Mississippi Bank Levy

A bank levy allows Mississippi to freeze and take funds from your bank account to satisfy a tax debt. The MS DOR may levy bank accounts for unpaid taxes. The bank freezes funds in the account on the day of the levy, up to the amount of the tax debt plus interest and penalties.

Key Facts About Mississippi Bank Levies

One-time levy: This is a one-time levy. After a bank levy, any funds deposited after the levy date are not affected. The DOR must initiate a new levy to capture those funds.
No advance warning: Once a levy is served on your financial institution, the funds may be frozen without advance warning to you.
Business accounts: Business bank accounts are not exempt from levy.
Multiple levies: The MS DOR may issue multiple levies if the full liability is not satisfied with the first levy.

If your account has been levied, you need to act quickly. A levy may be lifted or modified in certain situations, but the timeline is tight. No guarantee of release.

Source: MS DOR Compliance FAQs

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Mississippi Wage Garnishment for Tax Debt

Wage garnishment means Mississippi can take money directly from your paycheck to pay your state tax debt. The MS DOR can garnish wages for unpaid taxes. The garnishment notice is sent to the employer, who must withhold funds from paychecks and remit them to the DOR until the tax debt is paid in full.

How Much Can Mississippi Take?

The MS DOR can garnish up to 25% of a taxpayer's wages for unpaid taxes. The wage garnishment remains in effect for subsequent pay periods until the total amount has been withheld and remitted.

Editorial note: the 25% figure is well corroborated. The specific statutory citation attached to it (Miss. Code Ann. § 27-3-33(4)) could not be confirmed during this review — the sections of § 27-3-33 that are referenced concern DOR's distress-warrant authority over financial institutions, not the wage garnishment percentage. Flagged for verification of the correct citation.

Wage Garnishment vs. Bank Levy

Feature	Wage Garnishment	Bank Levy
Target	Your paycheck	Your bank account
Amount	Up to 25% of wages	Full account balance (up to liability)
Duration	Continues each pay period until paid	One-time at time of service
New funds	Applies to each paycheck	New deposits after levy date not affected
Notice to Employer/Bank	Employer must comply by law	Bank must comply by law

If you have received a notice about garnishment or an intent to garnish, do not ignore it. Once garnishment starts, the money is taken before you receive your paycheck.

Source: MS DOR Compliance FAQs

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Get Help With a Mississippi Collection Notice

If Mississippi has filed a lien, frozen a bank account, started wage garnishment, or sent a serious collection notice, waiting usually makes the problem worse. Get the notice reviewed before making random payments or ignoring the deadline.

Get Help With a Mississippi Collection Notice

No guarantee of outcome. We review your facts and explain your options. We will tell you if the settlement is not realistic. Call (888) 260-9441

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Mississippi Unfiled Tax Returns

If you have not filed Mississippi tax returns for one or more years, that can block most resolution options. The MS DOR may estimate your tax and issue assessments based on those estimates — sometimes higher than what you actually owe.

Filing accurate returns can sometimes reduce an incorrect balance. But do not rush or file bad returns. It's better to prepare returns correctly with the right income, deductions, and Mississippi credits.

Why Filing Matters

Unfiled returns block payment plan eligibility (Form 71-661 requires all returns to be filed)
The MS DOR may issue substitute returns with a higher tax than you actually owe
Penalty relief generally requires all returns to be filed
OIC applications require all relevant tax periods to be addressed

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Mississippi Business, Sales Tax, and Payroll Tax Debt

Business tax debt is a higher risk than individual income tax debt. Sales tax and withholding tax are trust fund taxes — money you collected or withheld that belongs to the state. The MS DOR takes these very seriously.

Responsible Person Warning: 10%+ Owner Threshold

Under Miss. Code Ann. § 27-65-55(2) (sales tax) and § 27-7-307(2) (withholding tax), persons owning stock of 10% or more of a corporation (or 10% interest in an LLC with 35 or fewer owners) who exercise responsibility for fiscal management are personally liable for unpaid trust fund taxes.

"Exercising responsibility for fiscal management" includes:

Serving as an officer or director
Managing day-to-day operations
Having the authority to hire/fire employees
Making decisions regarding the disbursement of funds and the payment of creditors
Possessing the authority to sign company checks

Key points:

Liability is derivative of the corporation or LLC
The 36-month assessment period begins after the business liability becomes final
A person assessed may appeal solely regarding ownership interest and management requirements

Successor Liability

Under Miss. Code Ann. § 27-65-55(1), a purchaser or transferee of a business must withhold sufficient purchase money to cover any taxes due. If the purchaser fails to withhold and the seller's taxes remain unpaid, the purchaser becomes personally liable for the former owner's taxes. A purchaser must withhold an amount not to exceed the purchase price until the seller produces a tax clearance letter.

Mississippi Sales Tax Debt

The state sales tax rate is 7%. Returns are generally due on the 20th day of the month following the reporting period. Unpaid sales tax can lead to license revocation, penalties, aggressive collection action, and personal liability for responsible persons with 10%+ ownership.

Mississippi Withholding Tax Debt

Every employer that transacts business in Mississippi must register for a withholding tax account. Returns are due on the 15th day of the month following the reporting period. Employers with $20,000+ liability must file electronically. Responsible person liability applies to 10%+ owners who exercise fiscal management.

Source: MS DOR Business Tax FAQs | SB 2967 (2010)

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Review My Mississippi Business Tax Debt

Sales tax and payroll withholding tax problems can create personal liability for 10%+ owners who exercise fiscal management. If Mississippi believes tax was collected or withheld but not paid, do not treat it like ordinary income tax debt.

Review My Mississippi Business Tax Debt

No guarantee of outcome. We review your facts and explain your options. We will tell you if the settlement is not realistic.

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Mississippi Tax Relief Tools & Calculators

Use our Mississippi calculators to estimate penalties, interest, or garnishment risk. Then request a review if the numbers show the balance is growing or collection is already active.

Mississippi Tax Penalty & Interest Calculator

Estimate how much penalties and interest have added to your balance. Remember: Mississippi generally does not abate interest and there is no stated cap.

Open Calculator →

Mississippi Sales Tax Penalty Calculator

Estimate sales tax penalties and interest for businesses.

Open Calculator →

Mississippi Wage Garnishment Calculator

See how much could be taken from your paycheck. Mississippi allows up to 25% of wages.

Taxpayer Access Point (TAP)

Access your Mississippi tax account online to view balances, make payments, and manage your account.

MS DOR TAP →

Mississippi Tax Forms

Find Mississippi state tax forms from the official MS DOR website.

MS DOR Forms →

Form 71-661 (Installment Agreement)

Download the official Mississippi installment agreement request form.

Form 71-661 →

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Mississippi Government Resources

These are the official Mississippi sources for tax information, payment plans, appeals, and rules. Always check the official source for the most current information.

Mississippi Department of Revenue (MS DOR) — Official tax agency portal
MS DOR Appeal Process and Hearings — 3-tier appeal guidance
MS DOR Compliance FAQs — Collection and compliance
MS DOR Business Tax FAQs — Business tax questions
Form 71-661 (Installment Agreement)
OIC Application for Individuals
OIC Application for Entities
SB 2026 (2014) — Uniform State Tax Lien Registration Act
SB 2967 (2010) — Responsible Person Liability
Miss. Code Ann. § 27-7-55 (Income Tax Liens)
Miss. Code Ann. § 27-65-55 (Sales Tax / Responsible Person)
Miss. Code Ann. § 27-7-307 (Withholding Tax)
Miss. Code Ann. § 27-77-5 (Board of Tax Appeals)

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Not Sure What to Do With Your Mississippi Tax Situation?

Select the card that matches your situation to jump to the relevant section.

Received a Tax Assessment Notice

Review the 60-day appeal deadline first. You can appeal to the Review Board, then the Board of Tax Appeals, then Chancery Court.

Jump to Appeals Section →

Cannot Pay in Full

Mississippi has an Offer in Compromise program (20% or $100 down). Payment plans are also available via Form 71-661 for individuals ($75–$3K over 12 months) or businesses (33% down + 6 months).

Jump to OIC Section → | Jump to Payment Plan Section →

Penalties Are the Main Issue

Penalty relief may be available for reasonable cause. But remember: Mississippi generally does not abate interest.

Jump to Penalty Relief Section →

Lien, Levy, or Garnishment Started

Act immediately. Mississippi liens last 7 years (re-enrollable indefinitely). Bank levies are one-time. Wage garnishments take up to 25%.

Jump to Lien Section → | Jump to Levy Section → | Jump to Garnishment Section →

Business Sales or Payroll Tax Debt

10%+ owners who exercise fiscal management face personal liability. Do not treat trust fund tax debt like ordinary income tax debt.

Jump to Business Tax Section →

Unfiled Tax Returns

Unfiled returns block most resolution options. File accurate returns before applying for a payment plan or OIC.

Jump to Unfiled Returns Section →

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Frequently Asked Questions About Mississippi Tax Relief

Does Mississippi have an offer in compromise?

Yes. Mississippi has an Offer in Compromise (OIC) program under Miss. Code Ann. § 31-19-29. The Governor, on the advice of the Commissioner of Revenue, may settle doubtful tax claims. A non-refundable payment of 20% of the offer amount or $100, whichever is greater, is required with the application. OIC applications for tax years less than 4 years old are not accepted. Tax liens are released only after the OIC is accepted and the full offered amount is paid.

How long is a Mississippi tax lien?

A Mississippi tax lien lasts 7 years from the date of enrollment in the Mississippi Uniform State Tax Lien Registry. There is no limit on the number of times the MS DOR may re-enroll (refile) notices of tax liens — each re-enrollment extends the lien for another 7 years. However, a reenrolled lien loses the priority it had prior to expiration. Upon full payment, the MS DOR must file a notice of release within 15 working days.

Can Mississippi garnish wages for taxes?

Yes. The Mississippi Department of Revenue can garnish up to 25% of a taxpayer's wages for unpaid taxes. The garnishment notice is sent to the employer, who must withhold money from paychecks and send it to the DOR until the tax debt is paid in full. Collection actions may begin 60 days after the Department mails an assessment notice if the taxpayer does not pay or appeal.

How do I appeal a Mississippi tax assessment?

Mississippi has a 3-tier appeal system with a 60-day deadline at each tier: Tier 1: File an appeal with the Review Board within 60 days from the date the agency mailed written notice. Tier 2: If you disagree with the Review Board's decision, appeal to the Board of Tax Appeals within 60 days from the date the Review Board order is mailed. Tier 3: If you disagree with the Board of Tax Appeals ruling, appeal to Mississippi Chancery Court or Circuit Court within 60 days from the date of the written order. Appeals can be filed online through TAP, by email to ReviewBoard@dor.ms.gov, by mail, or hand-delivered.

Does Mississippi have a payment plan for state taxes?

Yes. Individual taxpayers who owe at least $75 but not more than $3,000 may request a 12-month installment agreement using Form 71-661. To qualify, you must have filed all required returns and paid all taxes due for the past five years, and must not have had a prior installment agreement in the past five years. Interest continues to accrue at 0.5% per month on the outstanding balance. For business tax liabilities, published guidance describes a 33% down payment with the remaining balance paid over 6 months (this figure is pending direct confirmation with DOR).

Can Mississippi waive penalties on tax debt?

Yes, Mississippi penalties may be waived upon a written request demonstrating reasonable cause. Reasonable cause may include serious illness, natural disasters, unintentional loss of essential financial records, or other circumstances showing the failure to comply was not due to willful neglect. However, interest on unpaid tax generally is not eligible for abatement in Mississippi and continues to accrue at 0.5% per month until paid in full.

Can Mississippi interest on tax debt be waived?

No, generally not. Interest on unpaid tax generally is not eligible for abatement in Mississippi. Interest continues to accrue at 0.5% per month (6% annual rate) from the original due date until paid in full, with no stated cap on the total interest that can accrue. This is one of the most important differences from federal tax relief, where interest abatement may be available in certain circumstances.

How much is the down payment for a Mississippi Offer in Compromise?

The down payment for a Mississippi OIC is 20% of the offer amount or $100, whichever is greater. This payment is non-refundable and is applied toward the liability regardless of whether the OIC is accepted. Additionally, OIC applications for tax years or periods less than 4 years old are not accepted.

Who can be held personally liable for Mississippi business tax debt?

Under Miss. Code Ann. § 27-65-55(2) and § 27-7-307(2), persons owning stock of 10% or more of a corporation (or 10% interest in an LLC with 35 or fewer owners) who exercise responsibility for fiscal management are personally liable for unpaid sales tax and withholding tax. "Exercising responsibility for fiscal management" includes serving as an officer or director, managing day-to-day operations, having authority to hire/fire employees, making decisions regarding disbursement of funds, and possessing authority to sign company checks.

How is a Mississippi tax lien released?

Upon payment in full of a tax lien enrolled in the registry, the MS DOR must, within 15 working days from receipt of payment, file in the tax lien registry a notice of release of the tax lien. If an OIC is accepted, the lien is released only after the full offered amount is paid.

Can Mississippi levy my bank account?

Yes. The MS DOR may levy bank accounts for unpaid taxes. The bank freezes funds in the account on the day of the levy, up to the amount of the tax debt plus interest and penalties. This is a one-time levy — any funds deposited after the levy date are not affected, and the DOR must initiate a new levy to capture those funds.

How long before Mississippi starts collection action?

Collection actions may begin 60 days after the Department mails an assessment notice if the taxpayer does not pay or appeal within that timeframe. The MS DOR's collection tools include tax liens, wage garnishments, bank levies, asset seizure, and business license revocation.

Can I be liable for a business I purchased in Mississippi?

Yes. Under Miss. Code Ann. § 27-65-55(1), a purchaser or transferee of a business must withhold sufficient purchase money to cover any taxes, damages, and interest due. If the purchaser fails to withhold and the seller's taxes remain unpaid, the purchaser becomes personally liable for the former owner's taxes. Always obtain a tax clearance letter before completing a business purchase.

Prefer to talk? Call (888) 260-9441 for a review

Sources Used

These are the official Mississippi government sources used for this page. Always check the current official source for the most up-to-date information.

Miss. Code Ann. § 27-7-55; Miss. Code Ann. § 85-11-13 — Tax lien duration (7 years) and re-enrollment. SB 2026 (2014) ↗
Miss. Code Ann. § 27-3-33(4); Mississippi DOR collection procedures — Wage garnishment up to 25%. MS DOR Compliance FAQs ↗
Mississippi DOR collection procedures — One-time bank levy; new deposits not affected. MS DOR Compliance FAQs ↗
Mississippi Uniform State Tax Lien Registration Act (SB 2026, 2014) — Collection warrants and remedial writs authority. SB 2026 ↗
Miss. Code Ann. § 31-19-29; Mississippi DOR OIC Application — OIC program, 20%/$100 down payment, 4-year minimum, discretionary acceptance. OIC Application (Individuals) ↗
Miss. Code Ann. § 31-19-27 — Definition of "doubtful claim" for OIC eligibility.
Miss. Code Ann. § 27-7-51; Mississippi DOR Business Tax FAQs — Penalty rates, interest at 0.5%/mo with no cap, interest NOT abatable. MS DOR Business Tax FAQs ↗
Mississippi DOR collection procedures — 60-day collection timeline after assessment notice.
Mississippi DOR OIC Application for Individuals — Financial documentation requirements (12 months bank statements, 3 pay stubs, credit report, etc.). OIC Application ↗
Mississippi DOR OIC Application for Individuals — Notarized Waiver of Confidentiality requirement.
Mississippi DOR OIC Application — Submission address: Office of Tax Enforcement, P.O. Box 23338, Jackson, MS 39225-3338.
Mississippi DOR Form 71-661 Instructions — Interest at 0.5%/mo during installment agreement. Form 71-661 ↗
Mississippi DOR Form 71-661 Instructions — Plan termination conditions.
Mississippi DOR Form 71-661 Instructions — Individual payment plan: $75-$3,000 range.
Mississippi DOR Form 71-661 Instructions — Qualification requirements (past 5 years compliance).
Mississippi DOR Form 71-661 Instructions — 60-month extended plan with approved IRS installment agreement for debts over $3,000.
Mississippi DOR compliance FAQs and payment plan guidance — Business plan: 33% down + 6 months. MS DOR Compliance FAQs ↗
Mississippi DOR Form 71-661 Instructions — Bankruptcy ineligibility for installment agreements.
Mississippi DOR guidance — Written penalty abatement request requirements.
Mississippi DOR procedures; tax professional analysis — Reasonable cause standards for penalty abatement.
Mississippi DOR guidance — Penalty abatement submission: P.O. Box 1033, Jackson, MS 39215; phone (601) 923-7700.
Mississippi DOR, Appeal Process and Hearings page — Review Board 60-day appeal deadline. MS DOR Appeals ↗
Mississippi DOR, Appeal Process and Hearings page — 30-day deadline for permit/tag/title revocations.
Mississippi DOR, Appeal Process and Hearings page — Filing methods (TAP, email, mail, hand delivery).
Mississippi DOR, Appeal Process and Hearings page — Review Board 180-day order issuance requirement.
Mississippi DOR, Appeal Process and Hearings page — Board of Tax Appeals 60-day deadline.
Mississippi DOR, Appeal Process and Hearings page — Board of Tax Appeals is independent from DOR.
Mississippi DOR guidance and Board of Tax Appeals procedures — Hearings held in Jackson.
Miss. Code Ann. § 27-77-5; Mississippi DOR Appeal Process — Chancery/Circuit Court 60-day appeal deadline. Miss. Code Ann. § 27-77-5 ↗
Mississippi DOR, Appeal Process and Hearings page — Representation and Power of Attorney requirements.
Mississippi Uniform State Tax Lien Registration Act (SB 2026, 2014) — Statewide registry established 2014.
Miss. Code Ann. § 85-11-13 — Reenrolled lien loses prior priority.
Miss. Code Ann. § 85-11-9(2) — Lien effect as judgment against competing creditors.
Miss. Code Ann. § 85-11-17 — 15-working-day release requirement after full payment.
Mississippi Title Examination Standards; Mississippi Bar — Types of state tax liens. MS Bar Title Examination Standards ↗
Miss. Code Ann. § 27-65-55(2); Miss. Code Ann. § 27-7-307(2); SB 2967 (2010) — 10% owner threshold for responsible person liability. SB 2967 ↗
Mississippi Secretary of State Administrative Code, Title 35, Part 100 — Definition of "exercising responsibility for fiscal management." Admin Code Title 35 ↗
Miss. Code Ann. § 27-65-55(1) — Successor liability for business purchasers.
Mississippi Secretary of State Administrative Code, Title 35, Part 102 — Purchaser withholding requirements.
Miss. Code Ann. § 27-65-17; Mississippi DOR Sales Tax pages — 7% state sales tax rate; returns due 20th of following month. MS DOR Sales Tax ↗
Mississippi DOR withholding tax guidance — Employer registration; $20,000+ liability requires electronic filing. Withholding Tax Instructions ↗

Disclaimer: This page provides general information about Mississippi state tax collection procedures and is not legal advice. Tax laws and agency procedures change. Always consult the official Mississippi Department of Revenue website or a qualified tax professional for advice specific to your situation. No guarantee of any particular outcome is expressed or implied. Approval for payment plans, Offers in Compromise, penalty relief, and other resolutions is discretionary.