Mississippi Bank Levy Checklist
State enforcement occurs when Mississippi’s Department of Revenue takes action to collect unpaid taxes, penalties, and interest from taxpayers who have not paid their full tax obligation.
Collection actions begin 60 days after the Department mails an assessment notice if no payment or appeal has been filed.
What This Issue Means
State enforcement means Mississippi's Department of Revenue has begun formal collection procedures against your income, bank accounts, or other assets to recover unpaid tax debt.
This action is triggered after prior notices requesting payment have been sent and the 60-day response period has passed without payment or appeal.
Enforcement actions differ from regular tax notices because regular notices ask you to pay or respond by a certain date. In contrast, collection efforts at this stage indicate the state is actively pursuing collection through wage withholding, bank account freezes, or property liens without additional warning notices.
These measures represent a formal collection effort authorized by statute, not a courtesy reminder. Legal collection tools available under Mississippi tax law move beyond administrative requests at this point in the process.
Why the State Issues Enforcement
Mississippi’s Department of Revenue initiates enforcement when tax debt remains unpaid after standard collection efforts have failed. Common triggers include unpaid income tax, unpaid sales tax for businesses, unpaid corporate tax, or accumulated penalties and interest that have gone unpaid for an extended period.
Collection actions may begin 60 days after the Department mails you an assessment notice.
Taxpayers receive 60 days from the date of the notice to pay the liability or appeal the assessment.
When that period expires without payment or appeal, and the debt remains outstanding, the state may initiate enforcement to recover the money owed. Mississippi tax law authorizes these collection tools as part of the state’s revenue protection process.
What Happens If You Ignore This
Continuing to ignore state enforcement can result in escalating collection actions. Wage garnishment may proceed, which removes money directly from your paycheck before it reaches your bank account.
Mississippi follows federal garnishment limits: the lesser of 25% of disposable earnings for that week, or the amount by which disposable earnings exceed 30 times the federal minimum wage.
Bank account levies may freeze available funds.
A Mississippi tax lien on the State Tax Lien Registry may be filed against property or assets to secure the debt. Tax liens remain in effect for seven years from the date of filing unless an action is brought on the lien before expiration or unless the Commissioner refiles the notice before expiration, with no limit on the number of times liens may be refiled.
What This Does Not Mean
Receiving a state enforcement notice does not mean criminal charges have been filed against you. State enforcement is a civil collection process, not a criminal prosecution.
An enforcement notice does not mean all of your assets will immediately be seized or that all income will be garnished. Receiving enforcement does not mean you have lost all options for resolution. Even after enforcement has begun, you can typically work with the state on payment arrangements, dispute resolution, or other administrative responses.
Steps to Take After Receiving an Enforcement Notice
1. Review the enforcement notice completely: Find the official notice from Mississippi’s
Department of Revenue and read the entire notice carefully, including all dates, amounts, and instructions. Identify what type of enforcement action is being taken and note the tax period or year the debt relates to.
2. Verify the debt amount: Gather any tax returns filed for the period listed in the enforcement notice and locate payment records showing what was paid and when.
Compare the amount listed in the enforcement notice to your records and note any discrepancies.
3. Document your financial situation: Write down your current monthly income from all sources and list all essential monthly expenses, including housing, utilities, food, insurance, and childcare. Calculate what remains after essential expenses are paid.
4. Contact the Department of Revenue: Locate the contact information for Mississippi’s
Department of Revenue from the enforcement notice or the official state website. Call or visit in person during business hours to understand your account status and ask specifically what enforcement action has been initiated.
5. Request enforcement relief if available: Ask whether you can request a hold on enforcement while discussing payment options. Inquire about requesting an installment agreement using Form 71-661 for your debt.
6. Understand installment agreement options
- For tax liability of $75 to $3,000, pay in 12 equal monthly payments.
- For tax liability exceeding $3,000, establish a 60-month payment plan if you have
an approved IRS installment agreement for the same tax year.
7. Understand eligibility requirements: To qualify for an installment agreement, you must file Form 71-661 with your return on or before the due date or any extensions allowed.
You must have filed all required income tax returns and paid all taxes due for the past five years. You cannot have previously entered into an installment agreement during the past five years.
8. Respond within required timeframes: Note that you have 60 days from the assessment notice to pay or appeal, after which a Mississippi tax lien may be filed.
Complete your response well before the deadline listed and keep copies of everything sent to the Department of Revenue.
9. Monitor your accounts and income: Watch your bank account for any unexplained withdrawals or freezes. Review your pay stubs to check for wage garnishment or withholding.
Common Mistakes to Avoid
Do not ignore any deadline listed in the enforcement notice because deadlines for responding, requesting relief, or providing information are enforceable. Missing deadlines can result in enforcement proceedings without further opportunity for negotiation.
When the Department of Revenue requests information, provide complete and accurate responses because incomplete submissions may be rejected. Do not discard or lose any notices, confirmations, or communications from the Department of Revenue because all records may be needed to prove payments or agreements.
Request written confirmation for all verbal agreements with the Department of Revenue because written documentation protects both you and the state.
Taking Action Now
State enforcement is a serious collection action requiring prompt response. Contact the
Mississippi Department of Revenue to discuss your situation and available options, including payment plans and relief programs.
Facing State Enforcement or Payroll Tax Issues?
If you’ve received a state tax notice and aren’t sure how to respond, we can help you review your options and next steps.
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- State enforcement actions and notices
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- Penalty and interest reduction options
- Payment plans and compliance solutions
- Representation before state tax agencies
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