Taxpayers are required to meet certain obligations under Michigan law. You are responsible for filing your tax returns on time with correct payments and ensuring that your returns are correct no matter who prepares them. Remember, you are responsible for the information in your return.
The following information will provide an overview of the Collection Process for Delinquent Taxes.
It is important to resolve any outstanding tax you owe as soon as possible. Penalty and interest will be added to your debt and will continue to grow until the amount is paid in full. Penalty charges can range from 25% to 500% of the tax due, depending on the type of the tax!
If you do not pay your taxes, you may receive a LETTER OF INQUIRY, NOTICE OF INTENT TO ASSESS, and/or a BILL FOR TAXES DUE (Final Assessment). This is your opportunity to resolve the debt prior to having the debt referred to collections, by either paying the amount due, appealing the assessment, or entering into an Installment Agreement. Do not wait for the Office of Collections to contact you! You must immediately take action to resolve your debt to avoid collection enforcement action.
Under the authority of Public Act 122 of 1941 , as amended, the Office of Collections is responsible for the collection of all delinquent state tax accounts for the State of Michigan. The Department may proceed to collect your delinquent tax debt by using several different enforcement methods. The Office of Collections can use an enforcement action for a minimum of 6 years to collect the debt. The 6 year period, known as the statute of limitations, may be extended by certain actions such as a court judgment.
By law, the Department may use a variety of actions to collect your past-due tax, penalty and interest and may take these actions at any time during the course of collection.
Click on the categories below for more information regarding possible actions:
Other Helpful Information
- Power of Attorney
If you wish to authorize another person or corporation, (tax preparer, accountant, attorney, family member, etc.,) as your representative in tax or debt matters before the State of Michigan, you must complete and file an Authorized Representative Declaration (Power of Attorney) Form 151 with the Office of Collections.
- Estimate Penalty and Interest Owed for a Late Payment
- Information about Driver Responsibility Fees
- Power of Attorney