Missouri Bank Levy Checklist
What State Tax Enforcement Means
State tax enforcement occurs when the Missouri Department of Revenue takes formal collection action against you for unpaid state income tax, sales tax, or other tax debts. The Department has already assessed the tax, issued notices of the assessment, and allowed time to pay or dispute. Collection tools authorized by Missouri law can now target your bank accounts, paychecks, professional licenses, or property through levies, garnishment, liens, or license suspension.
Why Missouri Issues Enforcement Actions
Missouri initiates enforcement when you have not paid a tax debt through normal billing and payment processes. Common triggers include unpaid income tax assessments, unpaid sales tax liabilities, or failure to respond to previous notices.
The specific enforcement method depends on the type of tax owed, the amount of the debt, and your response history. Missouri law authorizes the Department to use multiple collection tools to pursue outstanding tax obligations.
Missouri’s Collection Notice Sequence
Understanding Missouri’s specific notice progression helps you identify where you are in the collection process. The Department uses statutorily required notices with distinct names and
purposes
- Missouri's request for tax return notice alerts you that the Department did not receive
your income tax return for a specific tax year.
- You will receive a notice of balance due when unpaid tax appears on the return you filed
with the Department.
- Changes the Department made to your return based on information from you, your tax
preparer, or other sources appear in a notice of adjustment.
- Missouri issues an assessment of unpaid tax as the statutory notice that formally
assesses the tax, interest, and additions you owe to the Department.
- Your federal income tax refund may be intercepted and applied to your Missouri tax debt
if you receive a notice of intent to offset.
- A notice of 10-day demand provides your last opportunity to resolve your account before
the Department escalates collection actions.
- When the Department files a certificate of tax lien against your real or personal property,
you receive a notice of tax lien confirming this action.
- Your case has been escalated to external enforcement through local prosecutors or
private collection firms when you receive a referral to a prosecuting attorney or collection agency.
The Critical 60-Day Protest Period
The assessment of unpaid tax represents the most important notice in Missouri's collection sequence. You have 60 days from the notice date to file a written protest with the Missouri
Department of Revenue explaining why you do not owe the amounts shown.
If you live outside the United States, you have 150 days to file a protest. After this deadline passes, the assessment becomes final, and you can no longer protest the underlying tax debt through administrative procedures.
Certificate of Tax Lien and Administrative Judgment
Missouri law permits the Director of Revenue to file a certificate of tax lien in two distinct ways after an assessment becomes final. First, the Director may file the certificate with the recorder of deeds in any county where you reside, own property, or have a place of business.
The lien attaches to all real or personal property you own or acquire after filing. Second, the
Director may file the certificate with the clerk of the circuit court, giving it the full force and effect of a default judgment. This administrative judgment allows the Department to execute on the lien through garnishment and levies without obtaining a separate court order.
Garnishment Authority and Limits
Missouri Department of Revenue Collections FAQs state that the Department is legally authorized to garnish up to 100 percent of available funds. A garnishment is a court order issued to an employer or financial institution requiring them to withhold wages or intercept funds in your bank account and pay them to the Department.
Garnishment can be issued at any time after an administrative judgment is filed until the debt is fully satisfied. If garnishment creates financial hardship by preventing you from meeting necessary living expenses, you can request a hardship review using the Garnishment Hardship
Application Form 5668.
Time Limits on Collection Enforcement
Missouri has a 10-year statute of limitations for tax collection under RSMo 143.902. A certificate of tax lien expires 10 years after filing unless the Director of Revenue refiles it within that period.
The Director may refile a certificate of lien one time for an additional 10 years, creating a maximum total collection period of 20 years. After this period expires, the lien is no longer enforceable unless it has been properly refiled within the allowed timeframe.
Appeal Rights After Protest Denial
When the Missouri Department of Revenue denies your protest, you receive a written decision explaining the reasons. You have 60 days from the date the decision is mailed or delivered to file a petition with the Missouri Administrative Hearing Commission for further review.
This represents your opportunity for an independent review of the Department’s decision before the assessment becomes final. Missing this deadline eliminates your right to administrative appeal and leaves only limited remedies, such as payment, payment plans, or challenging whether the lien was erroneously filed.
Protection for Non-Obligated Spouses
Missouri provides a specific protection for joint filers when only one spouse owes debt to the
Department or another state agency. You may check the non-obligated spouse box on Form
MO-1040 to prevent your portion of the refund from being intercepted to pay your spouse’s debt.
This protection applies to debts owed to state agencies, including child support, back taxes, and student loans. Debts owed to the Internal Revenue Service are excluded from the non-obligated spouse apportionment and cannot be separated using this procedure.
License Suspension for Specific Categories
License suspension for unpaid tax debt applies to state employees, attorneys, members of the
General Assembly, judicial branch personnel, statewide elected officials, and individuals with professional licenses under Missouri’s Individual Income Tax Compliance program. Missouri issues a Notice of Balance Due when you have an outstanding tax delinquency in one of these categories.
Failure to resolve the tax issue within the stated time limits on the notice results in suspension of your professional license or loss of employment with the State of Missouri. Members of the general public not in these categories do not face license suspension for tax debt.
Payment Plans and Resolution Options
Missouri offers Internet Installment Agreements through the MyTax Missouri system for taxpayers unable to pay the full balance immediately. You need your Social Security Number or business tax identification number, your most recent tax notice including PIN, and bank account information to apply online.
If you do not have your Bill PIN Number, you must complete Form 4338 to request a payment plan or email paymentplan@dor.mo.gov with “Bill PIN Number request” in the subject line.
Setting up a payment plan does not release a filed certificate of tax lien until you pay the debt in full.
Credit Reporting and Public Records
The Missouri Department of Revenue does not report tax liens directly to credit bureaus. Credit bureaus may monitor public records for liens filed with the recorder of deeds or circuit court clerk.
Since 2018, the three major credit bureaus have stopped including tax liens on consumer credit reports as a matter of policy. The certificate of tax lien and any cancellation remain public information once filed, and the Department does not govern credit bureau policies regarding how long they maintain this information.
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.
We help with
- 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
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