For several years Mississippi has attempted to pass legislation to authorize offers in compromise allowing taxpayers to pay less than the full amount of finally determined taxes due by them. The Mississippi Constitution prohibits any release or extinguishment of any obligation or liability to the state, except for the compromise of certain doubtful claims.
On Thursday the House of Representatives amended and advanced HB 1095 to enact a process by which the Department of Revenue may approve offers in compromise for doubtful claims upon “the advice of the Attorney General.” The original draft required approval by the Governor. The bill defines a doubtful claim as one for which a notice of tax lien has been enrolled in the Uniform State Tax Lien registry for a finally determined tax liability and for the collection of which the ordinary process of law has been ineffectual. If enacted, this bill would be effective July 1, 2021.