Mississippi Notice of Wage Garnishment Checklist
Understanding the Notice
A Mississippi wage garnishment notice is an official order from the state tax authority directing your employer to withhold a portion of your paycheck and send it to the state to satisfy a tax debt. This notice arrives after other collection attempts have failed, indicating that the state has initiated active enforcement against your wages.
Why You Received This Notice
State tax authorities send this notice when 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 mailing an assessment notice.
How Mississippi Wage Garnishment Works
Once the garnishment order takes effect, your employer must comply with the directive and begin withholding funds before you receive your whole paycheck. For general debts, Mississippi follows federal limits under the Consumer Credit Protection Act, which restricts garnishment to the lesser of twenty-five percent of disposable earnings or the amount exceeding thirty times the federal minimum hourly wage.
However, state income tax debts are exempt from these standard restrictions under Mississippi Code Section 85-3-4(3)(a)(ii), meaning different and potentially higher limits may apply to such garnishments. These tax-related garnishments are also exempt from the thirty-day waiting period that applies to other types of garnishments, so the Mississippi Department of Revenue can begin garnishing wages immediately after service.
Employment Protections and Limitations
Federal law protects employees from termination due to wage garnishment, but this protection has significant limitations. Under the Consumer Credit Protection Act, employers cannot fire an employee whose wages are garnished for any one debt, regardless of how many levies are made for that single debt.
This protection does not extend to employees who have wage garnishments for two or more separate debts, meaning employers may legally terminate employment in such situations. Your employer is required by law to process garnishments, and the garnishment itself does not mean you are losing your job or facing criminal charges.
Credit Reporting and Public Records
As of April 16, 2018, all three major credit bureaus removed tax liens from consumer credit reports and ceased reporting them. Wage garnishments themselves do not appear directly on credit reports.
What Happens Without Action
If you do not respond to the Mississippi wage garnishment notice, withholding will continue with each paycheck until the debt is satisfied, a payment arrangement is made, or the state issues a release. The garnished amount will be deducted from your paycheck with each pay period as long as the garnishment remains in effect.
Changing Employment During Garnishment
If you change employers, state agencies may need to issue a new garnishment order to your new employer, but the debt itself does not disappear. The state has other collection tools available, including bank account levies and property liens, though those actions are separate from wage garnishment.
Payment Plans and Resolution Options
The Mississippi Department of Revenue offers installment agreements for tax debts, which can be requested using Form 71-661. Individuals owing between $75 and $3,000 can typically arrange for twelve monthly payments by submitting Form 71-661 to the call center or mailing the form directly to the agency.
Those owing over $3,000 with an existing IRS installment agreement may qualify for payment plans lasting up to 60 months. Even after a garnishment order is issued, you may be able to contact the state about payment plans or other arrangements.
Settlement Programs
The state also offers an offer-in-compromise program that allows taxpayers to settle their tax debt for less than the full amount in certain circumstances. Contact the Mississippi Department of Revenue directly through their toll-free number to inquire about your eligibility for this program or other hardship options.
Initial Review Steps
Read the entire notice carefully and locate the tax year or period in question, the total debt amount, the garnishment amount or percentage, the effective date, and the contact information for the Mississippi Department of Revenue. Write down any case or notice number listed on the document.
Check your own Mississippi state tax return records to confirm whether you filed a return for the tax year listed and whether you owe state income tax. If the tax year appears incorrect or the debt does not align with your records, note this clearly for your contact with the state.
Preparing Your Information
Review the garnishment amount or percentage stated in the notice so you can budget your take-home pay going forward. Once the garnishment goes into effect, verify that your employer is withholding the correct amount by checking your next paycheck.
Gathering Documentation
Gather your financial documents and tax forms, including pay stubs, recent tax returns, bank statements, and any correspondence you have received from Mississippi about this debt. Keep these organized and accessible for your discussions with the state.
Communicating with the State
Contact the Mississippi Department of Revenue using the information on the notice. Request to speak with someone about your account and clearly explain your situation.
Requesting Payment Options
During your contact with the state, inquire whether a payment plan, lump-sum settlement, or other arrangement is possible. If you speak with someone at the state, ask for written confirmation of what was discussed and any agreement reached.
Record Keeping Requirements
Keep this documentation in a safe place along with the original notice, any follow-up correspondence, notes from phone calls, and payment records. File all materials related to the garnishment together in one location for easy reference.
Dispute and Monitoring Procedures
If you believe the debt is not yours, ask the state about how to formally dispute the debt under procedures outlined in the Mississippi Code Annotated and Mississippi Administrative Code. The state should be able to explain the process for challenging the amount or the tax year in question.
Ongoing Account Monitoring
Periodically contact the state to confirm the amount paid and the remaining balance. Do not assume the garnishment will automatically stop once the debt is paid in full. Verify that the state has released the garnishment order and notify the state immediately if your employment changes, as they may need to issue a new garnishment order to your new employer. Maintaining regular communication with the Mississippi Department of Revenue helps ensure that the garnishment process runs smoothly and is completed promptly once the debt is satisfied.
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.
We offer:
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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
