35 Miss. Admin. Code Pt. I, Ch. 05 — Collection Procedures for Levy of Monies

100 General
101 This regulation is promulgated to establish a uniform method and procedure for the
administration of Distress Warrants for the Levy of Monies Owed to Taxpayer (Distress
Warrants) issued by the Commissioner of Revenue, and it is intended to apply to all
such Distress Warrants issued by the Commissioner of Revenue regardless of the type of
tax involved in the Distress Warrant. This regulation is promulgated to supplement all
other rules and regulations adopted by the Department and/or the Commissioner of
Revenue for the various taxes for which a Distress Warrant can be issued.
102 Pursuant to Miss. Code Ann. Section 27-3-33(4), warrants issued by the Commissioner
of Revenue for the collection of taxes shall be used to levy on salaries, compensation, or
other monies due to the delinquent taxpayer. Such warrants for the levy of monies will
be issued in the same manner as any warrant for the collection of taxes issued by the
Commissioner of Revenue. It shall be issued under the official seal of the Department
and only after a tax lien has been enrolled on the state tax lien registry. After issuance,
the warrant must be served by mail or by hand delivery of said warrant by an agent of
the Department to the person or entity named as garnishee. The agent shall execute a
Proof of Service indicating on what date and upon whom the warrant was served. This
Proof of Service is to be sent by the agent to the Department where it is to be retained as a
part of the file on said warrant.
103 Within thirty (30) days from the date of service of the Distress Warrant, the person or
entity served must file with the Department an Answer in which the person or entity
answers, under oath, the questions set forth on said Distress Warrant. This Answer may
be submitted by one of the methods described below:

# 1.

Submit by mail or facsimile to the Lien Administration Bureau of the
Department the prepared form titled Answer to Distress Warrant.

# 2.

Submit by e -mail to the Lien Administration Bureau of the Department the
completed Levy Response form. Prior to using this method of answering the
Distress Warrant, the Levy Response Agreement Request must be submitted and
approved. For entities who receive twenty -five (25) or more levies in a delivery,
a document containing levy information will be e -mailed to the entity to be
completed and returned by e -mail to the Lien Administration Bureau of the
Department. For entities who receive less than twenty -five (25) levies in a
delivery, single-answer e-mails should be submitted to the Lien Administration
Bureau of the Department.

# 3.

Submit through TAP, which the Garshniee may access on the Department's
website. To submit an answer using this method, the submitting individual or
entity does not need a TAP account, only the letter ID number which is printed
in the upper right -hand corner of the letter, and the last four digits of the
taxpayer's social security number.
104 It is the responsibility of the person or entity served with a Distress Warrant to remit to
the Department monies levied by the Distress Warrant. The extent to which monies are
levied by the Distress Warrant is governed by garnishment laws of this State and will
vary depending on the type of indebtedness for which said monies are owed to the
taxpayer(s) and the existence of a prior warrant or garnishment. The extent to which
monies are levied and required to be remitted under a Distress Warrant is as outlined
below.
105 A Distress Warrant being issued by the Commissioner of Revenue for the collection of
state taxes is excepted from the restrictions contained in Miss. Code Ann. Section 85 -
3-4 (1) and (2), and 15 U.S.C. Section 1673(a) on attachment, execution, or garnishment
of wages, salaries, or other employment compensation. Without these restrictions, the
entire disposable earnings of a taxpayer are subject to being levied. Recognizing the
hardship that would result if a person's entire disposable earnings are levied for an
extended period, it is hereby determined that in most cases the amount of wages,
salaries, or other employment compensation owed to a delinquent taxpayer which is to
be levied and withheld under a Distress Warrant should be less than the entire
disposable earnings.
106 Unless otherwise determined and directed as authorized under sections below,
the amount of wage, salaries, or other employment compensation owed to a
delinquent taxpayer which is to be levied by Distress Warrant is hereby limited
to the following:
1. Monies owed to the defaulting taxpayer for wages, salaries, or other employment
purposes are not bound by the Distress Warrant for the first thirty (30) days after
service of the Distress Warrant, and such monies which become due to the
defaulting taxpayer before or during this initial thirty (30) day period for wages,
salaries or other employment compensation are to be paid over to the defaulting
taxpayer.
2. For all monies for indebtedness for wages, salaries, or other employment
compensation that becomes due to the defaulting taxpayer after the initial thirty
(30) day period, the employer shall withhold twenty -five percent (25%) of the
defaulting taxpayer's disposable earnings per pay period until the Distress
Warrant is satisfied. Disposable earnings are part of the earnings of an individual
remaining after the deduction from those earnings of any amounts required to be
withheld by law.
3. If the defaulting taxpayer leaves the employment of the person or entity served
with a Distress Warrant after the initial thirty (30) day period from service of the
warrant, the employer shall withhold one hundred percent (100%) of the
defaulting taxpayer's final disposable earnings or such lesser amount that will
satisfy the warrant.
107 The authority to increase or decrease the amount or percentage of wages, salaries, and
other employment compensation levied under a Distress Warrant from that set out in the
subsection above is hereby reserved by the Commissioner of Revenue. In such cases
where a different amount or percentage of disposable earnings from that set out in the
subsection above is determined to be levied and withheld under a Distress Warrant, the
Distress Warrant issued to levy such wages, salaries, and other employment compensation
in a different amount or percentage from that set out in the subsection above shall clearly
set out the amount or percentage of disposable earnings to be levied and withheld under
said Distress Warrant.
108 Monies owed to the defaulting taxpayer for indebtedness other than for wages, salaries,
or other employment compensation are levied and bound by a Distress Warrant at the
time that this warrant is served up to the amount of the warrant. The person or entity
served is required to withhold all monies owed to the defaulting taxpayer at the time of
service of the warrant for such non -employment indebtedness up to the amount of the
warrant. In regard to such non-employment indebtedness, a Distress Warrant also binds
and requires to be withheld any monies for such indebtedness which becomes due to the
defaulting taxpayer after service of the warrant, but before the expiration of the thirty
(30) day period during which the person or entity served has to answer the warrant to
the extent that monies previously bound under the warrant are not sufficient to satisfy
the warrant. The aggregate of all monies bound and withheld under the warrant,
whether for non -employment indebtedness which was due at the time of service or
which became due during the first thirty (30) days after service, shall not exceed the
amount of the warrant.
109 If a bank is issued a Distress Warrant, the bank may place a freeze on the taxpayer's
account for thirty (30) days, capturing all deposits up to the amount owed to the
Department. These funds are to be held and remitted thirty (30) days after the levy is
received. Even if the answer is filed before the expiration of the thirty (30) days and
only a percentage of the amount governed by the levy has been captured, the bank is still
required to capture additional deposits up to the amount due on the levy and remit the
total to the Department at the end of the thirty (30) days. If a bank participates in the
Financial Institution Data Match (FIDM) program, the levy only applies to the funds on
deposit at the time the bank receives and answers the levy. If the bank answers on the
same day it receives the levy, then it is only responsible for the amount available at that
time. In this scenario, the thirty (30) day holding period is bypassed.
110 If the person or entity served by a Distress Warrant is subject to multiple warrants
and/or garnishments of the same defaulting taxpayer, the order in which such warrants
and garnishments are to be withheld and satisfied is to be governed by Miss. Code Ann.
Section 11-35-24 with the warrant being treated as if it is a garnishment. This priority
does not, however, apply to an Order of Withholding under Miss. Code Ann. Section
93-11-111 in regard to the defaulting taxpayer, since, by statute, such Order of
Withholding is not considered to be a garnishment. If the person or entity served
with the Distress Warrant is at the time of service of the warrant or at some later time
required to withhold from defaulting taxpayer's wages under an Order of Withholding
for child support, the full amount of the monies to be withheld under the warrant is still
to be withheld per pay period to the extent that there are disposable earnings remaining
after the monies under the Order of Withholding have been withheld. The person or
entity served is to withhold first for the amount under the Order of Withholding and
then for the amount under the warrant. In such cases, the amount of disposable earnings
that is levied under the warrant is to be determined as with any other warrant without
any deduction or adjustment for the monies paid under the Order of Withholding. The
amount resulting from this computation will be the amount to be withheld and remitted
under the warrant unless it is greater than the difference between the total amount of
disposable earnings and the amount to be withheld under the Order of Withholding in
which case this difference will be the amount to be withheld and remitted.
111 All payments to the Department of monies levied under a Distress Warrant shall
reflect the name of the defaulting taxpayer, the warrant number, and the Garnishee
identification number. If a person or entity required to remit monies under a Distress
Warrant desires a different period for the remittance of monies from that set out above,
such person or entity can make a request to the Commissioner of Revenue for a change
in this period. Such a request shall be made in writing and shall include therein the
reasons for requesting the change. Upon consideration of this request, the
Commissioner of Revenue or his designee shall advise the requesting person or entity
as to whether the request is granted.
112 If a person or entity served with a Distress Warrant fails to withhold and/or remit to the
Department the monies bound and levied by the warrant, the person or entity served shall
be personally liable to the Department for said monies. If after the expiration of the
period for the remittance of the monies bound and levied under a Distress Warrant, the
Commissioner of Revenue finds that the person or entity served with the warrant did not
remit to the Department all monies bound, levied and required to be remitted under the
warrant, the Commissioner of Revenue will assess said person or entity for the taxes,
penalties, interest, and cost included in the warrant in the amount of the monies which
were bound and levied under the warrant, but which were not remitted, and must advise
the person or entity served of his personal liability for said monies, demand payment of
same, and further advise the person or entity served that levy and collection process may
be issued against him for said liability. If payment of this liability is not forthcoming, the
Commissioner may issue, in the same manner as other taxes, levy, and collection
processes against the person or entity served to collect this personal liability for monies
that should have been remitted under the warrant.
113 (Reserved)
35.I.05 revised effective December 21, 2024.