Tax Alert

(May 9, 2011)

Michigan Tax Amnesty

Michigan tax amnesty is available from May 15, 2011, through June 30, 2011. During this time, original and amended returns may be filed for periods ending on or before Dec. 31, 2009. Penalties are waived under the amnesty program. Most taxes are eligible for amnesty, though local taxes, real estate taxes, and personal property taxes are excluded.
Taxpayers are not eligible for tax amnesty if they are:

  • The subject of a current tax-related Court of Claims case or criminal investigation; or
  • Eligible to enter into a voluntary disclosure agreement with the state.

Taxpayers with outstanding liabilities may apply for penalty-only waivers. In addition, taxpayers being audited or who have received an audit assessment are also eligible for amnesty.
Additional information on Michigan’s amnesty program can be found here.

Michigan Treatment of Disregarded Entities

A previous Crowe Tax Alert provided information on Michigan’s proposed changes to the treatment of disregarded entities under the Michigan Business Tax. It is anticipated that legislation to address this problem will be introduced in May.
In anticipation of the potential legislation, the Michigan Department of Treasury has extended the deadline for preparing amended returns from June 30, 2011, to Oct. 31, 2011.
For more information on how these issues might affect you, please contact Howard Wagner at 502.420.4567 or, Elizabeth Carrier at 616.233.5610 or, Patty Buhr at 574.239.7801 or, or any Crowe Horwath LLP tax professional.

Under U.S. Treasury rules issued in 2005, we must inform you that any advice in this communication to you was not intended or written to be used, and cannot be used, to avoid any government penalties that may be imposed on a taxpayer.

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Howard M. Wagner
Partner, National Tax Services