Michigan State Tax Enforcement Decision Checklist
Introduction
Michigan state tax enforcement is the formal process the Michigan Department of Treasury uses to collect unpaid taxes, address unfiled tax returns, or resolve tax compliance issues. If you have received a notice from the State of Michigan, missed a tax filing deadline, or have an outstanding tax balance, understanding enforcement procedures can help reduce confusion and prevent additional penalties. Enforcement actions begin after initial notices go unanswered or after a specific compliance deadline passes under Act 122 of 1941.
What This Issue Means
State enforcement represents an active collection or compliance action by the Revenue Division of the Department of Treasury. This could include a notice of assessment, a demand for payment, a levy notice, a wage garnishment proceeding, or a notice to file. Enforcement means the state has determined that a tax obligation exists and is taking formal steps to collect it or require compliance with your financial obligations.
Why the State Issued This or Requires This
The Michigan Department of Treasury issues enforcement notices when standard collection methods have not resolved a tax issue. Common triggers include unpaid tax balances from a prior assessment, a return filed late or not at all, or a failure to respond to earlier notices. The department follows a notice sequence, including a Letter of Inquiry, a Notice of Intent to Assess, and a Final Bill for Taxes Due, before escalating to formal enforcement for tax debt collection.
What Happens If This Is Ignored
Failing to comply with an enforcement notice results in additional collection steps. The state may pursue wage garnishment, bank account levies, or property liens. Penalties and interest continue to accrue on unpaid balances during this time. Continued non-response may lead to more aggressive collection methods or referral to the attorney general or Michigan Tax
Collections for further action.
What This Does Not Mean
An enforcement notice does not automatically mean your assets will be seized immediately or that criminal charges will be filed. It also does not mean that settlement or payment plan options are no longer available. The state offers installment agreements and other resolution options
even during enforcement. Receiving an enforcement notice does not mean the assessment is final and cannot be disputed; however, specific procedural steps and timeframes apply to requesting a hearing or review.
Understanding the Tax Assessment Process
The tax assessment process starts when you file a Michigan Individual Income Tax Return, which constitutes a self-assessment of tax. If the Michigan Department of Treasury accepts your return as filed, this becomes the state’s tax assessment. However, the department may audit your return if it suspects a dispute over the amount of income, issues with credits such as the
Homestead Property Tax Credit or Michigan Home Heating Credit Claim, or other compliance concerns within four years after filing.
Checklist: What to Do After Receiving an Enforcement
Notice
Step 1: Read the Entire Notice Carefully
Find the complete notice from the Michigan Department of Treasury and read all pages, including fine print, instructions, and any deadlines listed. Identify the specific issue and note what the notice is asking you to do, such as pay, file, or respond.
Step 2: Identify Deadlines and Appeal Rights
Write down any deadline listed on the notice, which is typically 60 days to request an informal conference or appeal. Check if the notice mentions a right to a hearing or appeal to the
Michigan Tax Tribunal, Michigan Court of Appeals, or Court of Claims.
Step 3: Gather Relevant Tax Records
Collect copies of your tax returns for the years in question, payment records, receipts, or bank statements related to taxes paid. Find any notices you received previously from the state and compile records showing your income, deductions, and business activity for relevant years, including Form 4884 Michigan Pension Schedule if applicable.
Step 4: Verify the Notice Information
Check that your name, address, and identification number match your records and confirm the tax year in question. Review the amounts listed against what you believe you owe or filed and note any discrepancies or errors you identify in the tax bills.
Step 5: Contact the Michigan Department of Treasury
Call the phone number listed on the notice to ask procedural questions and clarify any deadlines or next steps. Ask what information the state needs to review your situation and inquire about available payment options or installment agreements for your tax debt.
Step 6: Decide Your Response Strategy
If the notice contains errors, consider requesting an informal conference using Form 5713 within
60 days to challenge it. If you agree with the amount, ask about payment options or installment agreements available through Form 990 for agreements of 48 months or less to resolve your financial obligations.
Step 7: Respond in Writing If Needed
Send written correspondence to the address listed on the notice and include your name, identification number, and the notice date. Clearly state what you are disputing or requesting, and keep a copy of everything you send for your records.
Step 8: Meet All Stated Deadlines
Mark the deadline on your calendar immediately and send responses with enough time to reach the state before the deadline expires. If you cannot meet the deadline, contact the state to request an extension rather than letting it pass without a response.
Step 9: Monitor for Follow-Up Correspondence
Watch for additional notices or requests from the state, and promptly open all correspondence from the Michigan Department of Treasury. Follow up if you expect a response that does not arrive within a reasonable timeframe after your submission regarding your Income Tax Refund or other matters.
- Missing the 60-day deadline: If a deadline is listed and you do not respond within 60
- Not reading the entire notice: Important information, deadlines, and procedures
- Failing to keep documentation: The state receives thousands of documents daily, and
- Assuming payment is the only option: Many taxpayers pay immediately without
- State tax notice review and response
- Penalty and interest reduction options
- Payroll and trust fund tax assistance
- Payment plan and relief eligibility review
- Representation with state tax agencies
Step 10: Document All Communication
Save copies of the notice and any documents you send to the state for your permanent records.
Write down the date, time, and name of any person you speak with at the state, and record what you discussed and any information you received.
Common Mistakes to Avoid days, the state may proceed with additional enforcement without waiting for your reply, or you may lose your right to appeal to the Michigan Tax Tribunal. appear throughout the notice, and skipping sections or reading only the first page may cause you to miss critical instructions or appeal rights. if you mail a response without keeping copies or tracking information, you may have no proof of your submission if questions arise. requesting a payment plan, but Michigan typically grants 24-month installment agreements without reviewing financial information for individuals owing back taxes, and agreements up to 48 months are available through Form 990.
Frequently Asked Questions
Does an Enforcement Notice Mean Criminal Charges?
State tax enforcement is a civil collection process, not a criminal proceeding. Criminal charges under Section 205.27 are reserved for intentional fraud or evasion with intent to defraud, including filing a false return or making a fraudulent claim, and constitute a felony punishable by up to five years imprisonment and fines up to $5,000.
What Are the Specific Deadlines for Response?
You have 60 days from the date of a Bill for Taxes Due, Intent to Assess, or a refund denial to request an informal conference using Form 5713. Alternatively, you may appeal directly to the
Michigan Tax Tribunal within 60 days or to the Michigan Court of Claims within 90 days after the assessment or decision.
Can I Request a Payment Plan During Enforcement?
Michigan offers installment agreements even during enforcement proceedings through Form
990 for agreements of 48 months or less. For agreements longer than 48 months, you must complete a Collection Information Statement listing income, expenses, assets, and liabilities, and contact the Collection Services Bureau at 517-636-5265.
Where Can I Get Additional Help?
If you are having issues communicating with the Michigan Department of Treasury or need assistance resolving tax problems, contact the Michigan Taxpayer Advocate for guidance. The
Internal Revenue Service handles federal tax matters separately, so ensure you direct state tax questions to the appropriate Michigan agency for proper resolution.
Received a State Tax Notice?
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