Mississippi State Tax Enforcement Decision Checklist
State tax enforcement in Mississippi occurs when the Mississippi Department of Revenue takes action to collect unpaid taxes, address non-filing, or resolve compliance issues. This enforcement action typically follows one or more notices sent to your address of record, and it can include tax liens, wage garnishment, bank levies, or property seizure.
What This Issue Means
The Mississippi Department of Revenue initiates formal collection action when you have unpaid taxes, unfiled returns, or unresolved compliance issues without a satisfactory response.
Enforcement means the state is moving beyond standard notices into active collection actions, though legal proceedings have not necessarily begun.
Why the State Issued This or Requires This
The Department of Revenue initiates enforcement when unpaid tax assessments remain uncollected after standard notice procedures, returns were never filed, or compliance issues remain unresolved. Mississippi Code establishes that the Department must assess tax within 36 months from the date the return was filed or the due date.
According to state procedures, the Department follows an established sequence of notices before enforcement actions begin. Enforcement starts when prior attempts to collect or resolve the issue have not succeeded.
What Happens If This Is Ignored
Ignoring Mississippi state tax enforcement typically results in escalated collection actions, including wage garnishment, bank account levies, and tax lien filings. Penalties and interest continue to accumulate on the unpaid balance, making the total debt larger the longer enforcement is ignored.
What This Does NOT Mean
Receiving an enforcement notice does not mean criminal prosecution is underway or that you will go to jail. It does not mean your property will immediately be sold, your wages automatically garnished, or that payment plans are no longer available.
Checklist: What to Do After Receiving an Enforcement
Notice or Identifying This Issue
Step 1: Locate and review the enforcement notice
Gather the exact notice you received from the Mississippi Department of Revenue and read it completely. Note the specific tax year or years involved, the amount claimed, the date issued, any deadline mentioned, and the contact information provided.
Step 2: Verify the tax debt is accurate
Review your personal tax records for the year or years in question and check whether you filed a return. Locate a copy of any submitted return, compare the amount claimed in the notice to what you believe you owe, and identify any discrepancies.
Step 3: Check for outstanding returns
Determine whether you have unfiled tax returns for any of the years mentioned. Request a filing history from the Department if you are unsure whether a return was filed.
Step 4: Document your current financial situation
Gather information about your current income, expenses, assets, and outstanding debts for potential resolution options. Financial hardship documentation is required if you seek relief based on inability to pay.
Step 5: Contact the Mississippi Department of Revenue
Call the Department of Revenue at the phone number listed on the enforcement notice. Provide your case number or notice number, explain that you received the enforcement notice, ask for the name of the staff member handling your case, and take detailed notes, including the date, time, and name.
Step 6: Request information about available options
Ask the Department directly what options are available to you, including payment plans using
Form 71-661 or penalty abatement requests. Request that any written guidance or forms be
mailed or emailed to you.
Step 7: Obtain written confirmation of what is owed
Request a detailed accounting from the Department showing the original tax amount, penalties, interest, and the current total owed. Ask for the calculation method if unclear and request this documentation in writing.
Step 8: If you dispute the debt, request a formal review
You have 60 days from the date of the mailed assessment notice to file an appeal with the
Board of Review if you believe the enforcement notice is incorrect. Request information about the appeal process and any written procedures related to disputes.
Step 9: File any outstanding returns immediately
Use Form 80-105 for Mississippi Resident Individual Income Tax Return or Form 80-205 for
Non-Resident or Part-Year Resident Individual Income Tax Return if you did not file for the year or years in question. Send the return certified mail with a return receipt requested so you have proof of submission.
Step 10: If you file or pay, maintain proof
Keep copies of any returns you file, payments you make, or correspondence you send to the
Department. Use certified mail for all submissions, keep the return receipt, and take screenshots of online submissions through the Taxpayer Access Point website.
Step 11: Respond to any follow-up notices immediately
The Department may send additional notices that require a response within the stated deadline.
Mark your calendar with any deadline dates mentioned, and do not ignore follow-up correspondence.
- Missing deadlines is the most critical error because assessment appeals must be filed
- Ignoring enforcement notices, hoping the issue will go away, consistently results in more
- Providing incomplete information when the Department requests specific documentation
- Not filing outstanding returns prevents certain resolution options from becoming
- Failing to keep proof of filings, payments, or correspondence creates problems later.
- Relying on verbal agreements with Department staff may backfire because such
- State enforcement actions and notices
- Payroll tax debt review and resolution
- Penalty and interest reduction options
- Payment plans and compliance solutions
- Representation before state tax agencies
Step 12: Keep all original documents
Maintain the original enforcement notice, all subsequent Department of Revenue correspondence, copies of returns filed, proof of payments, and notes from phone calls.
Organize these chronologically and do not discard any documents related to this enforcement action.
What Happens After This Is Completed
After you contact the Department or respond to the enforcement notice, the state typically processes your response and may issue further correspondence outlining the next steps.
Payment plan agreements using Form 71-661 may suspend active enforcement collection actions while the agreement remains in effect.
Disputed assessments initiate an administrative process, and the Board of Review must issue an order within 180 days from the date of the hearing. The state will typically confirm receipt of your response in writing.
Common Mistakes to Avoid within 60 days from the date the notice was mailed. serious collection actions. often results in additional notices or enforcement escalation. available because unfiled returns cannot be resolved through payment plans alone. arrangements may not be officially recorded.
Frequently Asked Questions
Does an enforcement notice mean the state will immediately garnish my wages?
No, an enforcement notice is issued before wage garnishment typically occurs. Wage garnishment is a possible escalation step that does not happen automatically upon notice, though the longer enforcement is ignored, the more likely such collection actions become.
Can I still work out a payment plan after enforcement is issued?
Yes, the Department offers installment agreements even after enforcement has begun if you owe at least $75. Taxpayers owing more than $3,000 must have an approved IRS installment agreement to qualify for a 60-month payment plan.
Can I appeal an enforcement action?
Mississippi has detailed appeal procedures allowing you to appeal to the Board of Review within
60 days from the date of the mailed assessment notice. If dissatisfied with the Board of Review decision, you have 60 days from the mailing of the order to appeal to the Board of Tax Appeals.
Will enforcement action affect my credit?
As of April 2018, the three major credit bureaus no longer include tax liens on consumer credit reports. A tax lien filed by the Department will not appear on your credit report, but it may still affect your ability to obtain credit through public records searches.
What is the statute of limitations for Mississippi tax collection?
The statute of limitations for Mississippi tax assessment is typically 36 months from the date the return was filed or the due date, whichever is later. Tax liens remain valid for seven years from the date of filing and may be refiled in seven-year increments.
What This Means for You
State tax enforcement in Mississippi is a serious matter that requires prompt attention and response. Understanding what enforcement means helps you respond appropriately, and the key steps are to respond to notices within 60 days, contact the Department directly, file any outstanding returns using the correct forms, and maintain documentation of all your actions.
Facing State Enforcement or Payroll Tax Issues?
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