The Michigan Department of Treasury is providing an opportunity for delinquent taxpayers to pay their taxes while avoiding penalty charges and criminal prosecution, but time is running out to participate in the program.
Michigan’s Tax Amnesty Program began May 15 and runs through June 30. To be eligible, taxpayers must complete the state’s amnesty application and provide full payment, including interest, postmarked by June 30.
Individual and business taxpayers can pay income tax, Michigan Business Tax, sales tax, use tax, withholding tax and a host of other state taxes incurred on or before December 31, 2009, through the amnesty program. Amnesty covers non-filed returns as well as returns that have underreported tax liabilities or overstated deductions (e.g. original and amended returns are eligible). However, the program does not include local taxes (such as real property tax).
Even if Michigan has contacted you about a deficiency for a tax year, you can still participate in the program. If you know you have some outstanding liabilities with Michigan or if you have had some activity in Michigan but haven’t been filing returns, this is a great program to get a clean slate and move forward.
Your accounting professional can assist you in determining if you have a filing requirement in Michigan, what taxes and interest are due, and helping you to complete the amnesty application. For additional information, please visit the Michigan Department of Treasury web page.