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Sales Tax Application Scam

Michigan Businesses Beware:

A recent apparent scam involves an online company, Sales Tax Application Organization, that claims that taxpayers can apply for state sales tax numbers through its portal—for a fee and personal information.

The Sales Tax Application Organization’s web page lists 42 states under its Sales Tax Application Portal and Michigan is not on that list. However, if a user clicks on the online application, a dropdown menu appears that lists Michigan and shows a charge of $177 to process a sales tax application. For an additional, $97, you may request expedited same-day service with e-confirmation. Reports warn no service will be provided and your money will be gone. The website does not list an address, telephone number, owners or managers. 

What you need to know:

There are only three ways to register for sales tax in Michigan: 1) online at the Michigan Treasury’s web portal: MTO; 2) by submitting a form 518 by mail; or 3) The Streamlined Sales Tax Governing Board Inc. To learn more, read the Michigan Business Taxes Registration Booklet.

SPOT IT: 

  • You receive an email with a link or an advertisement for an online service that, for a fee, will register your business to collect sales tax in Michigan.
  • Even fake business webpages may have an https:// or display medallions or certificates. If there is no way to verify an online business, do not do business with it.

STOP IT:

  • To register in Michigan or another state to collect state sales tax, check with the State Treasury first to verify how to do this.
  • Stay informed. Sign up to receive Consumer Alerts to prevent becoming a scam victim.

To report a scam, file a complaint, or get additional information, contact the Michigan Department of Attorney General:

Consumer Protection Division
P.O. Box 30213
Lansing, MI 48909
517-335-7599
Fax: 517-241-3771
Toll free: 877-765-8388
Online complaint form