Tax Problems and Tax Resolution in Mississippi

The Mississippi Department of Revenue, formerly known as the State Tax Commission, is the primary agency responsible for the collection of tax revenue and the administration of tax code.

The following information is unique to taxes in Mississippi

• Garnishment & Seizures
• Liens
• Notice of Assessment
• Offset
• Payment Options
• Penalties & Interest
• Personal Liability
• Power of Attorney
• Revocation or Suspension of Permits

Garnishment & Seizures

After a lien has been recorded a warrant to seize your wages, bank accounts and other assets may be issued by the Department of Revenue. Your employer may be required to garnish your salary until the liability has been paid in full. A garnishment may also take funds from your bank account. Property that is seized may be sold to satisfy your tax debt.

Liens

When your tax debt becomes finally determined, the Department of Revenue may file a lien to secure the state's interest in the debt. A lien is a publicly recorded legal claim against your property. The lien is filed in the circuit clerk's office of the county or counties where you have property. It can affect your credit and may affect your ability to purchase or sell real estate.

Notice of Assessment

If a tax debt has become finally determined, you will receive a Notice of Assessment and be given a chance to appeal the assessment. The notice will be sent to the last known address of the taxpayer or business.

Offset

If you have an outstanding tax liability with the State of Mississippi, you may be subject to having any future state or federal refunds intercepted and applied to the taxes you owe. You will be notified of the state's participation in the federal offset program when you are issued a Notice of Intent to Offset.

Payment Options

If your individual tax return was filed on time and the amount you owe is more than $75 but less than $3000, you may request an installment agreement. The installment agreement must be fully paid within 12 months of the date of the tax return. Penalty and interest will be imposed on any portion of tax not paid by the original due date. Some of the conditions that must be met for approval for an installment agreement include, but are not limited to the following

During the past 5 years, taxpayer (and taxpayer's spouse if a joint return) has not:

• Failed to file any return
• Failed to pay any tax as required
• Entered into an installment agreement

Penalties & Interest

If you do not pay or file your taxes on time, you may be liable for additional penalty fees and interest charges.

Late Payment of Withholding Taxes: 10% penalty for late payment of the tax due plus interest at the rate of 1% per month from the date that the tax was due.

Late Payment of Income Tax: If you do not pay your income tax on time you will be liable for interest of 1% per month on amount of the underpayment from the original due date until paid in full. You will also be charged a penalty at a rate of 1/2% per month (not to exceed 25% in total).

Personal Liability

If you are the individual in a corporation who has control or supervision of, or the responsibility of filing returns, making payments, or carrying out the corporation's fiscal responsibilities, you can be personally assessed for any outstanding tax debts of the corporation.

Power of Attorney

You have the right to authorize a qualified person to represent you regarding your tax matters before the Department of Revenue. You may use the Mississippi Representation and Power of Attorney form to authorize the disclosure of your confidential tax information and representation.

Revocation or Suspension of Permits

The Department of Revenue has the authority to revoke or suspend permits and licenses including sales tax permits, beer permits, tobacco permits, dealer licenses, or designated agent status if you do not comply with Mississippi tax code. If the DOR determines that there is a cause for suspension or revocation of your permit, you will be mailed or hand delivered a "Notice of Intent". The notice will include the reason for action and give you an opportunity to file a written request for a hearing before the Review Board. You have 30 days from the date of the notice to appeal the intended action to the Review Board. If no appeal is filed within the 30-day period, the intended action of the DOR will take effect as explained in the notice and no further review by the Board of Tax Appeals or a court will be permitted.

We strive to save our clients money, time and stress.  Just as there are many different tax related problems, there are many options for tax resolution.  Call us at 888-902-0778 for a free consultation. In a few minutes we will help you to better assess what options are best for your unique situation.