The 2011 Michigan Tax Amnesty Program
This website was created to explain the Michigan 2011 Tax Amnesty Program to those people who were delinquent taxpayers.
Content is from the site's archived pages as well as other outside sources such as press releases.
Michigan 2011 Sales and Use Tax Amnesty Ending
June 7, 2011
By Susan McLain
If you are a Michigan resident, keep this date: June 30, 2011. That’s when Michigan Department of Treasury’s Tax Amnesty program for both individual taxpayers and businesses ends. According to the State, “Whatever your excuse for not paying state taxes, now you can settle up without paying any penalties.” In their unique campaign the State declares “All excuses welcome.” Regardless of whether your dog ate it or you couldn’t find any pens with ink, Michigan state encourages all taxpayers who are delinquent in paying their state taxes under the Revenue Act (PA 122 of 1941) to ante up now for all taxes due through December 31, 2009 and the penalty will be waived. In addition, the State will not pursue criminal prosecution for any taxes paid under the amnesty program. But time is running out!
In order to encourage businesses to self-audit and either register or begin to pay sales and use taxes without penalty, states have the option to enact a Voluntary Tax Amnesty Program (VTAP) such as Michigan’s. A voluntary program usually goes as follows: businesses (or residents) have a certain amount of time, usually 30-45 days, to determine if they owe sales and use taxes; if they determine liability, they are given certain incentives to begin reporting and paying that liability. Sometimes, states will relieve the business of interest, penalties and fees as well as prosecution if they deliver before the expiration date of the voluntary program.
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Types of Taxes Covered by Amnesty
Michigan’s tax amnesty program covers nearly all types of state taxes administered by the Michigan Department of Treasury, including:
- The business tax
- The single business tax
- The state personal income tax
- The withholding tax
- The sales and use tax
Eligibility for Tax Amnesty
Taxpayers eligible for amnesty include individual and business taxpayers who have the following types of tax liabilities:
Underreported tax liabilities
- Non-reported tax liabilities
- Overstated deductions, credits, or exemptions
- Failure to file Michigan tax returns
- Delinquent payment of past due taxes
- Taxpayers who have received a final tax due notice
Taxpayers under criminal investigation or eligible to use the state’s voluntary disclosure program are not eligible to apply for tax amnesty. Further, amnesty is not available if any of the following circumstances applies:
- The tax is attributable to income derived from a criminal act.
- The taxpayer is under criminal investigation, subject to criminal prosecution, or involved in a civil action in connection with that tax.
The taxpayer has been convicted of a felony under the state Revenue Act or the Internal Revenue Code.
Tax Amnesty Considerations
Michigan’s tax amnesty program has few constraints and is being administered very favorably for taxpayers compared with most state amnesty programs. For example, the Department does not prohibit taxpayers from seeking a refund of taxes paid under amnesty, thus allowing taxpayers to remit tax during the amnesty period and then seek a refund later if they want to contest the underlying tax technical issue with the Department.
Other Considerations
The Michigan tax amnesty program is an opportunity not to be missed by taxpayers with underpaid Michigan taxes that will otherwise likely result in penalties being imposed if the taxes were remitted outside of amnesty. Taxpayers should carefully follow the rules issued by the Michigan Department of Treasury for seeking amnesty and remember that interest stops accruing when the tax, return, and other materials are submitted pursuant to the tax amnesty program.
As a personal injury attorney practicing in the great state of Texas for over fifteen years, I've come to appreciate resources that clearly explain complex legal and financial matters to the public. The MITaxAmnesty.org website is exactly the kind of public service I wish existed in more areas of law.
Every day in my practice, I meet hardworking Texans who have been injured through no fault of their own and are suddenly thrust into the complex world of personal injury claims, insurance negotiations, and legal proceedings. The confusion and anxiety they experience navigating this unfamiliar territory reminds me of what delinquent taxpayers must feel when facing tax penalties and potential legal consequences.
What impresses me most about Michigan's 2011 Tax Amnesty program is the straightforward way the website breaks down eligibility requirements, application procedures, and benefits. Their "All excuses welcome" approach recognizes that people fall behind on taxes for countless reasons - much like how my clients experience injuries through various unforeseen circumstances.
In my Texas personal injury practice, GESInjuryAttorneys.com, I strive to create the same sense of clarity and accessibility that this Michigan program achieved. Whether explaining complex medical causation or statute of limitations to my clients, I recognize that legal jargon and procedural complexities can be just as intimidating as tax codes and amnesty applications.
The comprehensive FAQ section on the Michigan site addresses the questions taxpayers are most likely to have, similar to how I try to anticipate and address my clients' concerns about their personal injury cases. Both situations require breaking down complex processes into manageable steps and clear instructions.
I particularly appreciate how the Michigan program created a limited window of opportunity (May 15 - June 30, 2011) with clear incentives for participation. This mirrors the importance of timelines in personal injury cases, where acting within specific timeframes can significantly impact outcomes.
While I help Texans navigate the aftermath of injuries rather than tax delinquencies, the fundamental challenge is the same: creating clarity amid complexity and providing a path forward through confusing legal territory. The Michigan Tax Amnesty program's website stands as an excellent example of public legal communication done right.
Here's hoping more government programs follow this model of clear, accessible information that helps citizens understand their options and obligations under the law. Robert Thornton, Esq.
If you have always paid your taxes on time, you probably have never given a thought about the type of Tax Amnesty Program that Michigan among other states offered delinquent tax payers in 2011. I know I hadn't until I received a panicked call from my mother. My mother said she had just opened a letter that said she owed the Internal Revenue Service $30,000 and the government had put a lien against her. It threatened she could lose her property and that additional penalties and interest could put her in even deeper debt. She was frightened and confused. I was confused since I always helped her with her taxes. The letter mentioned a settlement amount of $5,000 on her $30,000 debt and urged her to call. But it also told her to disregard the notice if she didn't owe the money. The letter went on to say that the company, which appeared to be a collection agency, had gotten the information about her supposed tax debt from public records. I called my lawyer friend Benjamin Pred, but he told me he was a corporate lawyer not a tax lawyer, but we were desperate for help, so he asked me for details to see if he could suggest a solution. He also asked if she had received any delinquency notices from the IRS. No. He then suggested that I call her county courthouse to check for a lien. No lien. Ben said he suspected a scam, since he knew she had paid her federal and state taxes, and told my mother to ignore the letter and if she received a phone call from the company who sent the letter, just to get a name and phone number and he would handle it. She never heard from the company again. This was so obviously a scam that even a corporate lawyer could tell there was something fishy about that call. Now there are many people who are delinquent with their payment of taxes for any number of reasons. I think the Michigan Amnesty program was great, although you would have had to know about it, in order to take advantage.
FYI: In 2017 Pennsylvania is offering a tax Amnesty program from April 21, 2017 through June 19, 2017, to all eligible taxpayers and waive all penalties and one-half interest if the taxpayer is able to pay the underlying tax and the one-half interest that was assessed. I hope I never find myself in a situation where I would be grateful to be eligible for an tax amnesty program. To learn more about the state of Michigan's 2011 tax amnesty program continue reading. It's informative even though the info is from 2011.
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Frequently Asked Questions
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Qualifying taxes and interest, which are paid under the Tax Amnesty program, will have penalty waived, and the Department will not pursue criminal prosecution relating to taxes paid under Tax Amnesty. | |||
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A taxpayer who is eligible for Tax Amnesty and who does NOT apply for Tax Amnesty during the Tax Amnesty period is liable for any tax, accumulated interest, and penalty due. Civil penalties will not be waived and criminal prosecution may be sought. | |||
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Taxes covered under Tax Amnesty | |||
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Any taxes for return periods ending after December 31, 2009 do not qualify for Tax Amnesty. Also, local (e.g., city, county) taxes, including real and personal property taxes, do not qualify for Tax Amnesty. | |||
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In order to obtain Tax Amnesty, a taxpayer must submit the following:
The Tax Amnesty Application, applicable returns, and full payment must be postmarked no later than June 30, 2011 to qualify. In order to stop the accumulation of interest, a taxpayer should file and pay as soon as the Tax Amnesty period begins. |
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Your total tax due and interest must be paid and postmarked no later than the end of the Tax Amnesty period of June 30, 2011. | |||
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You may obtain forms, instructions, and other Tax Amnesty information at www.mitaxamnesty.org or by calling the Michigan Department of Treasury's toll-free Amnesty hotline at 1-855-466-4829. | |||
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The following payment options are being accepted:
No credit card or debit card payments will be accepted. DO NOT send cash through the mail. |
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The completed Tax Amnesty Application (Form #3855), applicable returns, and full payment should be mailed to: Michigan Department of Treasury The information must be postmarked no later than June 30, 2011. The check or money order should be payable to the "State of Michigan" for the total tax and interest due. Write your account number or Social Security Number and the word "Amnesty" on your check/money order. |
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Penalty only assessments are eligible for a penalty waiver under Tax Amnesty. The taxpayer must submit a Tax Amnesty Application (Form #3855) postmarked no later than June 30, 2011. | |||
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The Department of Treasury will notify you in writing if your request for Tax Amnesty has been denied. | |||
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Tax Amnesty may be denied for any of the following:
Failure to pay all of the tax and interest due will result in Tax Amnesty being denied. If Tax Amnesty is denied, civil penalties will not be waived and criminal prosecution may be sought. If you are eligible to enter into a Voluntary Disclosure agreement with the Michigan Department of Treasury, you are not eligible for Tax Amnesty. If you have questions regarding Voluntary Disclosure, visit www.mitaxamnesty.org or call 1-855-466-4829. Furthermore, Tax Amnesty is not available if any of the following circumstances apply:
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Payments received will be applied to any tax liabilities or other outstanding debt you may have. If any balance remains, it will be refunded. | |||
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No. Full payment of taxes and interest must be made and postmarked no later than the end of the Tax Amnesty period of June 30, 2011. | |||
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If you paid more than the tax and interest due, any over-payment will be applied to other outstanding debt you may have. If any balance remains, it will be refunded. | |||
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You may obtain additional Tax Amnesty information by visiting www.mitaxamnesty.org or by calling the Michigan Department of Treasury's toll-free Amnesty hotline at 1-855-466-4829. | |||
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Returns filed under Tax Amnesty are subject to audit as any other tax return may be. | |||
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If a taxpayer made or received an excessive claim for refund for any qualifying taxes for return periods ending on or before December 31, 2009, the taxpayer can repay the excessive refund, plus interest, without penalty being charged. All unpaid penalties will be waived and the Department will not pursue criminal prosecution relating to taxes paid under Tax Amnesty. | |||
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Taxpayers under audit who want to file for Tax Amnesty must remit the full amount of the tax due, interest, and submit a completed Tax Amnesty Application (Form #3855) to the auditor during the May 15, 2011 through June 30, 2011 Tax Amnesty period. The audit will include any applicable penalty which will be waived at the time the audit is processed. For audits that will not be completed by the end of the Amnesty period, the taxpayer may prepare an amended return, a Tax Amnesty Application (Form #3855), and remit full payment of the tax and interest due to the auditor during the Tax Amnesty period. Applicable penalty would only be applied to any additional tax determined due upon completion of the audit. |
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Tax Amnesty is available for those who are in the informal conference process. You must submit a Tax Amnesty Application (Form #3855) and full payment of the tax and interest due postmarked no later than June 30, 2011; the informal conference process will proceed as otherwise scheduled. Tax Amnesty is not available to taxpayers under tax-related criminal investigation, criminal prosecution, or who have been convicted of a felony under the Revenue Act or the Internal Revenue Code. |
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A taxpayer litigating a case before the Michigan Tax Tribunal or the Appellate courts or in informal conference before the Department of Treasury is eligible for Tax Amnesty provided the taxpayer files the Tax Amnesty Application (Form #3855) and pays in full the tax and interest due, postmarked no later than June 30, 2011. The taxpayer may continue litigating their case before the Michigan Tax Tribunal or their appeal before the Appellate courts or pursue informal conference before the Department if the Tax Amnesty is granted. A taxpayer that has already paid the tax, interest, and penalty they are contesting in order to litigate in the Court of Claims is not eligible for Tax Amnesty. | |||
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Yes. An officer of a corporation, who is personally liable for the corporation's tax liability, is eligible for a penalty waiver under Tax Amnesty. An Officer must complete the "For Individuals Only" section of the Tax Amnesty Application (Form #3855). | |||
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Tax refund offsets that occur during the Tax Amnesty period May 15, 2011 through June 30, 2011 may apply toward Tax Amnesty; provided, the taxpayer files the Tax Amnesty Application (Form #3855), required tax returns, and makes full payment of tax and applicable interest, postmarked no later than June 30, 2011. | |||
