State Tax Amnesty

Michigan Governor Jennifer Granholm recently signed legislation allowing for state tax amnesty in 2011. The amnesty period begins on May 15, 2011 through June 30, 2011, and represents a huge opportunity for taxpayers. The piece of legislation applies to taxes due before December 31, 2009.

Taxpayers could have all criminal and civil penalties waived by filing for amnesty and paying all tax and interest owed related to the state income tax, the Michigan Business Tax (MBT), state sales tax, and many other categories covered by the Revenue Act. All taxes and interest must be paid by the end of the amnesty period in order for penalties to be waived. Situations such as failing to file a return, nonpayment of tax, or excessive claim of a refund may have resulted in penalties for taxpayers.

The Michigan Department of Treasury will be notifying eligible taxpayers no later than April 15, 2011. Amnesty filing forms are unavailable as of this post, but we expect the Treasury to include in their mailing either the physical forms or instructions on how to obtain the forms online.