Mississippi Notice of Demand for Payment Checklist
What a Mississippi Assessment Notice Means
State tax authorities send these notices to taxpayers who owe taxes in Mississippi. These notices include the amount owed, the type of tax involved, and a deadline for payment or response.
This document represents a formal step in the state's tax collection process, though it does not constitute a lawsuit or immediate wage garnishment. Taxpayers can pay the balance, arrange payment terms, or dispute the assessment before the state proceeds with enforcement actions.
Why You Received This Notice
The state issues these notices when tax obligations remain unpaid after the due date or when the Department of Revenue determines additional taxes are owed. Mississippi's Department of Revenue will not call about taxes owed without first sending written notification.
What Happens If You Do Not Respond
Failing to respond by the deadline shown typically results in collection actions. The state may file a tax lien against your property, issue warrants to seize assets or garnish wages, or refer the debt to collection agencies.
Under Mississippi Code Section 27-7-55, a tax lien remains valid for seven years from the date of filing, and the state can refile liens indefinitely in seven-year increments. Interest and penalties continue to accumulate on unpaid balances, increasing the total amount owed.
Understanding Your Appeal Rights
Mississippi law provides taxpayers with formal appeal rights when they dispute an assessment. Filing a Review Board Appeal Petition within 60 days from the date the agency mailed or delivered written notice of the evaluation is required.
Submission options include your Taxpayer Access Point account, emailing the Review Board, mailing with a postmark showing the deadline date, or hand-delivering to the Review Board office during business hours. Failing to meet the 60-day deadline forfeits your right to challenge the assessment through an administrative appeal.
Time Limits on Collection and Assessment
The statute of limitations for the Mississippi Department of Revenue to assess taxes is typically 36 months from the date a tax return is filed or from the return's due date. Once the state files a tax lien, it remains valid for seven years but can be refiled repeatedly in seven-year increments with no limit on the number of renewals.
Steps to Take After Receiving an Assessment Notice
Review the notice immediately and record the notice date, response deadline, amount owed, tax type, and account number. Verify the amount against your own records, including tax returns, payment confirmations, and previous correspondence with the state.
Contact the Mississippi Department of Revenue using the phone number listed on your notice, keeping the notice and account number available during the call. Explain whether you believe the amount is correct and whether you can pay the full balance.
Available Options for Resolution
Ask about available options during your conversation with the Department of Revenue. Standard options include paying the full amount, establishing a payment plan, requesting additional time, or filing an appeal if you dispute the assessment.
Document every interaction by recording the date, the representative’s name, what you discussed, and what the representative told you. Request written confirmation of any agreements or procedures the representative describes.
Payment Plan Eligibility and Requirements
Mississippi offers installment agreements for taxpayers who owe at least $75 but cannot pay the full amount immediately. To qualify, you must file your return on or before the due date, including any extensions, file and pay all required income tax returns for the past five years, and have no installment agreement during the past five years.
For tax liabilities exceeding $3,000, you must have an approved IRS installment agreement for the same tax year and attach a copy to your state application. Submit Form 71-661 with your return to request monthly payment arrangements.
Common Mistakes That Complicate Resolution
Taxpayers create additional problems by ignoring these notices or discarding them without reading them in full. Waiting until after the deadline to contact the state eliminates appeal rights and payment plan options.
What This Notice Does Not Mean
This notice does not mean the state has filed a lawsuit against you or obtained a court judgment. The notice does not indicate that your wages have been garnished or that your bank accounts have been frozen, as those actions require additional legal steps.
Receiving this notice does not automatically eliminate your options for handling the debt. Most taxpayers still have time to contact the state, discuss the balance, arrange payment terms, or file an appeal.
Taking Action Before the Deadline
The deadline printed represents the date by which you must pay the balance or take formal action. Please mark this date on your calendar and respond well in advance to allow sufficient time for processing and to account for potential mail delays.
If you mail documents, send them early enough to account for delivery time, or consider using certified mail for proof of mailing date. Contact the state before the deadline passes if you are unable to meet it for legitimate reasons.
Received a State Tax Notice?
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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This checklist is for educational purposes only and does not constitute tax or legal advice. Always review official IRS instructions and consult a qualified professional for guidance
