Tuesday, October 12, 2010

Michigan Governor Approves Tax Amnesty Bill

On October 5, 2010, Michigan Governor Granholm approved a bill that authorizes a tax amnesty to be held starting May 15, 2011 and ending June 30, 2011. The amnesty applies to all taxes administered by the Department of Treasury that are due before January 1, 2010. A taxpayer requesting amnesty would have to make full payment of the tax and interest due for any prior period by the last day of the amnesty period. (L. 2010, S884 (P.A. 198), effective 10/05/2010, operative as shown.)

Amnesty period. The amnesty period will start on May 15, 2011 and end June 30, 2011. The amnesty does not apply to taxes due after December 31, 2009.

Waiver of penalties. Under the amnesty, the State Treasurer would waive all criminal and civil penalties provided by law for failing or refusing to file a return, for failing to pay a tax, or for making an excessive claim for a refund for a tax administered by the Department. Taxes covered by the amnesty include the Michigan Business tax, the Single Business Tax, the state personal income tax, and the sales and use tax.

Amnesty request. To take advantage of the tax amnesty, a taxpayer must make a written request for a waiver on a form prescribed by the Department, submit any unfiled returns or amended returns, and make full payment of the tax and interest due for any prior period not later than the last day of the amnesty period.

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