Mississippi State Tax Lien Checklist
A state tax lien is a legal claim filed by the state against your property when you owe unpaid state taxes. This enforcement action signals that the state has moved beyond notices and is taking formal steps to protect its right to collect what is owed.
What This Issue Means
A state tax lien is a formal legal notice enrolled by the Mississippi Department of Revenue on the State Tax Lien Registry that claims a security interest in your property due to unpaid state taxes. The lien attaches to real estate, vehicles, and other assets you own to secure the state’s right to collect the debt.
It does not transfer ownership of your property to the state, but it creates a public record that other creditors and financial institutions can see. Filing a lien is a collection tool used after other enforcement notices have been issued without payment or resolution.
Why the State Issued This or Requires This
Mississippi enrolls a tax lien when unpaid state tax debt remains outstanding, and previous collection efforts have not resulted in full payment or a resolution agreement. A tax lien is
enrolled after specific requirements are met
- A tax liability is assessed, and the Commissioner of Revenue mails an Assessment
Notice to the taxpayer at their last known address.
- The taxpayer is provided sixty days from the mailing date of the Assessment Notice to
either fully pay the assessment or to appeal the assessment.
- Liens are not enrolled until a tax debt is no longer subject to appeal or the time to appeal
is exhausted.
What Happens If This Is Ignored
Ignoring a tax lien does not cause it to disappear, and the state may pursue additional collection actions to satisfy the debt. The lien remains on the registry and can interfere with your ability to sell, refinance, or obtain credit against the property it secures. Property owners who fail to
address enrolled liens may face escalated enforcement that affects their credit report and financial standing.
What This Does NOT Mean
A tax lien does not mean the state has seized your property or that you have lost ownership of it. It does not automatically result in a tax sale or foreclosure, though such actions may eventually follow if the debt remains unpaid.
Checklist: What to Do After Receiving This or Identifying
This Issue
Step 1: Verify that the lien is valid and relates to your tax account.
Access the State Tax Lien Registry online at tap.dor.ms.gov to obtain information about the lien enrolled against you. Confirm that the taxpayer name, account number, and tax years listed match your records. Check whether the lien relates to income tax, business tax, sales tax, or other tax types administered by the state.
Step 2: Locate your original tax assessment notice or demand for payment.
Retrieve any prior notices from the Mississippi Department of Revenue related to the unpaid tax. These notices typically explain the tax year, the amount owed, and any penalties or interest added to the original tax bill for any delinquent tax obligations.
Step 3: Review the amount claimed on the lien.
The current amount due may differ from the original amount listed because of payments made against the debt and accrual of additional penalty and interest. Compare the amount shown on the public record to your personal records of payments, refunds, or disputes.
Step 4: Gather documentation of any payments made toward this debt.
Collect bank statements, cancelled checks, payment confirmations, or receipts showing any payments made to the Mississippi Department of Revenue for this tax liability. Note the dates and amounts of all payments related to these tax obligations.
Step 5: Determine whether you can pay the full amount owed.
Review your financial situation to establish whether you can pay the entire lien amount in a lump sum. If you cannot pay in full immediately, understand that other resolution options may be available for taxpayers facing financial hardship.
Step 6: Contact the Mississippi Department of Revenue to discuss the debt
and available options.
Call the Tax Liens division at 601-923-7391 or email taxliens@dor.ms.gov to speak with a representative. Provide your tax account number and explain your situation related to the fiscal year taxes owed.
Step 7: Ask whether the state offers a payment plan or installment
agreement.
During your conversation with the Department of Revenue, inquire about formal payment plans or structured payment arrangements. Confirm whether entering into such an agreement affects the status of the lien on the public record and whether it impacts your credit report.
Step 8: Ask whether the state considers partial payment or other relief
options.
Inquire whether the Department of Revenue evaluates cases where you cannot pay the full amount. Ask what documentation is required to request any form of relief or settlement negotiation for business tax debt or other liabilities.
Step 9: Determine whether you wish to dispute the tax liability itself.
If you believe the underlying tax is incorrect, ask the Department of Revenue about the process for disputing the assessment under Mississippi Code provisions. Understand that a dispute process exists separately from lien collection and may involve review or appeal procedures.
Step 10: Request written confirmation of any agreement or resolution plan.
If you reach an agreement with the state, ask for written documentation of the terms. Ensure the written agreement specifies the lien status and whether the lien will be released upon completion of the agreement.
Step 11: Follow all terms of any agreement you enter into.
Make all payments on time and in the amounts specified if you establish a payment plan or other arrangement. Keep records of each payment to protect your interests when addressing tax obligations.
- 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: Monitor the lien status and request cancellation when appropriate.
After the debt is satisfied or resolved, request written confirmation from the Department of
Revenue that the lien has been cancelled. The State Tax Lien Registry will be updated to reflect that the debt is satisfied, and you will receive a Lien Cancellation Notice showing the public record has been cleared.
What Happens After This Is Completed
Once you contact the Mississippi Department of Revenue and provide information about your situation, a representative will respond with information about the debt balance, available payment or resolution options, and next steps. When the debt is fully paid or resolved according to an agreed arrangement, the State Tax Lien Registry will be updated to show the lien as cancelled, which may improve your credit report status over time.
Common Mistakes to Avoid
Not responding to the lien or any follow-up notices from the state can result in escalated collection efforts. Sending payments without a documented agreement can create confusion about whether payments are credited properly and whether the lien will be removed.
Assuming the lien will disappear after a certain period is incorrect because Mississippi law allows continuations on state liens until they are paid in full, making a tax lien valid indefinitely through repeated seven-year continuations. Taxpayers who change contact information without notifying the Department of Revenue may cause enforcement action to continue or escalate if the state cannot reach them.
Frequently Asked Questions
Does a tax lien mean the state owns my property?
No, a lien is a legal claim against your property, not ownership. You retain ownership and the right to use the property unless and until a tax sale occurs.
Can I sell my property if there is a tax lien on it?
In many cases, you can still sell the property, but the sale proceeds must typically be used to pay off the lien amount before you receive any remaining funds.
How long does a tax lien stay on record?
A tax lien is valid for seven years from the date of enrollment unless a continuation is filed before it expires, extending the lien another seven years.
Can I have the lien removed if I enter into a payment plan?
This depends on the terms of the agreement with the state. Clarify this in writing before entering into any agreement.
Who do I contact at the Mississippi Department of Revenue to address the lien?
Contact the Tax Liens division at 601-923-7391 or email taxliens@dor.ms.gov.
Facing State Enforcement or Payroll Tax Issues?
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