Michigan Final Notice / Intent to Levy or Enforce Checklist
Understanding Michigan Tax Collection Notices
The Michigan Department of Treasury follows a specific sequence when collecting unpaid state taxes. Taxpayers receive multiple notices before the state takes enforcement action, such as wage garnishment or bank levy.
Knowing which notice you received and what it means determines your available options and the deadlines associated with them. The Collection Services Bureau manages delinquent accounts after the assessment process is completed, and Michigan law grants the state the authority to use several enforcement methods under Act 122 of 1941.
Michigan’s Official Notice Sequence
Michigan sends notices in a structured order during the collection process. Your first notice is typically a letter of inquiry, which requests additional information or notifies you of a potential tax debt.
If you do not respond or resolve the issue within 30 days, Treasury may issue a Notice of Intent to Assess. This notice explains the proposed tax amount and taxable period. You have 60 days from receipt to request an informal conference using Form 5713.
A Bill for Taxes Due (Final Assessment) serves as the final notice in the assessment sequence. This confirms the tax debt and allows the Collection Services Bureau to begin enforcement actions against your assets.
What Happens After Final Assessment
Once the Michigan Department of Treasury issues a Bill for Taxes Due (Final Assessment), collection enforcement may begin at any time. When the Treasury decides to levy on your assets, Michigan law requires at least 10 days’ written notice before executing the levy against financial institutions, wages, or other property. The department adds a $55 warrant cost for each levy served. Enforcement may include placing liens on property, seizing business assets, intercepting tax refunds, or referring your account to private collection agencies.
Types of Collection Actions
The Collection Services Bureau can use multiple enforcement tools:
● Liens on both real and personal property protect the state’s interest as a creditor, even if you are maintaining current payment arrangements.
● Through tax warrants, the state has the authority to close businesses or seize personal property, including vehicles, equipment, and inventory.
● Under a wage levy, employers must deduct a specified amount from your compensation and continue doing so until the debt is fully paid.
● Financial institutions, including banks and credit unions, are required to send held funds directly to the Treasury when a levy is issued.
● When a refund offset occurs, your income tax refund or other state payments are applied to the outstanding debt.
● In cases involving corporate officer liability, business owners can be held personally responsible for unpaid business taxes and related penalties.
Your Rights to Dispute or Appeal
Different notices trigger different appeal rights and deadlines. For a Notice of Intent to Assess, you have 60 days to request an informal conference with the Hearings Division by submitting Form 5713 to P.O. Box 30038, Lansing, MI 48929.
After receiving a bill for taxes due (final assessment), you have 35 days to appeal to the Michigan Tax Tribunal or 90 days to appeal to the Michigan Court of Claims. Missing these deadlines typically deprives you of your right to contest the assessment through the appeals process.
Payment Options and Agreements
Treasury considers installment agreements after you receive your Bill for Taxes Due (Final Assessment). For agreements lasting 48 months or less, you must complete and sign Form 990, which requires a proposed payment amount that Treasury reviews for approval.
Michigan typically grants 24-month installment agreements without reviewing financial information; however, the bureau files liens on property even when taxpayers make current payments. Interest continues accruing on the unpaid balance throughout the payment period, and partial payments do not automatically stop levy action unless you establish a formal approved payment arrangement.
Immediate Steps to Take
Read your entire notice carefully from start to finish. Identify the notice type, tax year, amount owed, deadline for response, and contact information provided.
Gather all related documents, including tax returns for the relevant years, proof of payments such as cancelled checks or bank statements, and prior correspondence from Treasury. Contact the appropriate division immediately: call 517-636-4486 for income tax questions, 517-636-6925 for sales and withholding taxes, or 517-636-5265 for collection matters.
Document every contact by recording the date, representative name, discussion details, and any agreements reached. Keep copies of everything you send to Treasury, and use certified mail when submitting appeals or dispute documentation.
Understanding Penalties and Criminal Matters
Owing civil tax debt does not result in jail time under Michigan law. The state utilizes administrative collection tools, such as levies and liens, to collect delinquent taxes.
However, Michigan law establishes criminal penalties for intentional tax fraud or evasion under Michigan Compiled Laws Section 205.27. A person who willfully attempts to evade tax or files false returns faces felony charges punishable by up to five years imprisonment and fines up to $5,000.
Common Mistakes to Avoid
Never ignore notices from the Michigan Department of Treasury, as missing response deadlines eliminate appeal rights and allow enforcement to proceed. Do not assume partial payment stops collection action without confirming an approved installment agreement exists.
Keep detailed records of all payments, including confirmation numbers, money order receipts, and bank statements that show ACH payments. Do not send incomplete documentation when disputing assessments; provide clear written explanations with supporting evidence and verify that Treasury received your submissions by following up within two weeks.
Received a State Tax Notice?
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This checklist is for educational purposes only and does not constitute tax or legal advice. Always review official IRS instructions and consult a qualified professional for guidance
