If you owe taxes to the Mississippi Department of Revenue, you may be able to set up an installment agreement to make monthly payments instead of paying the full amount all at once. In this article, we`ll explain what a Mississippi Department of Revenue installment agreement is, how to apply for one, and what you need to know before signing up.
What is a Mississippi Department of Revenue Installment Agreement?
A Mississippi Department of Revenue installment agreement is a payment plan that allows you to pay off your tax debt over time. Instead of making one large lump-sum payment, you make smaller monthly payments until the debt is paid in full. This can be a good option if you can`t afford to pay your entire tax bill all at once.
How to Apply for a Mississippi Department of Revenue Installment Agreement
To apply for an installment agreement with the Mississippi Department of Revenue, you`ll need to complete form 71-661 (available on their website) and mail it to the address listed on the form. You`ll also need to include a down payment with your application, which should be at least 20% of the total amount you owe.
Once your application is approved, you`ll receive a notice outlining the terms of the agreement, including the monthly payment amount, due date, and length of the agreement. You`ll need to make your payments on time to avoid additional penalties and interest charges.
What to Know Before Signing Up for a Mississippi Department of Revenue Installment Agreement
Before signing up for a Mississippi Department of Revenue installment agreement, there are a few things you should keep in mind:
– You`ll still owe interest and penalties on the amount you owe, even if you`re on an installment plan.
– If you miss payments, the department can terminate your agreement and take collection action against you.
– You`ll need to file all future tax returns and pay any taxes owed on time to avoid defaulting on your agreement.
– The department may file a tax lien against your property if you owe more than $5,000 and don`t pay your taxes on time.
In conclusion, a Mississippi Department of Revenue installment agreement can be a helpful option if you`re unable to pay your tax debt in full. Just be sure to understand the terms of the agreement and make your payments on time to avoid additional penalties and interest charges.