Collection Financial Standards for Individuals
Disclaimer: Treasury Collection Financial Standards are intended for use in calculating repayment of delinquent liabilities owed to the State of Michigan. These standards are effective September 1, 2017, solely for the purpose of administration regarding liabilities owed to the State of Michigan.
The Department of Treasury’s (Treasury) financial standards are used to determine a debtor’s ability to pay a delinquent liability when a debtor requests an agreement that requires proof of financial hardship. Allowable living expenses include only expenses that are considered necessary expenses. Necessary expenses, as defined by the Internal Revenue Service (IRS), are expenses that are necessary to provide for a debtor’s (and his or her family’s) health and welfare and/or production of income.
Treasury adheres to financial standards similar to the financial standards published by the IRS for housing and utilities; transportation; medical costs; and food, clothing, and other items when possible.
Generally, the total number of persons allowed for necessary living expenses should be the same as those allowed as exemptions on the debtor’s most recent year income tax return.
Treasury offers payment arrangements that allow past due amounts to be paid in monthly installments over a period of time. These payment arrangements are called installment agreements. Installment agreements are independent of any other State statutes allowing for the payment of delinquent debt.
Be advised that while there is an outstanding balance with Treasury, the following conditions apply:
- Penalty and interest will continue to accrue as provided by statute.
- Liens will be filed against your real and personal property for any unpaid State tax balance.
- Additional terms and conditions can be found on the Installment Agreement (Form 990).
Installment Agreements Lasting Less Than 24 Months
The vast majority of installment agreements require little or no financial analysis and no substantiation of expenses. If requesting to pay a debt in full within 24 months, no substantiation of expenses is required. Complete and submit the Installment Agreement (Form 990).
Installment Agreements Exceeding 24 Months
The Collection Financial Standards are used in cases requiring financial analysis to determine a debtor’s ability to pay. If requesting to set up an installment agreement exceeding 24 months, complete and submit the Installment Agreement (Form 990) and the Collection Information Statement – Individual (Form 3189) and provide any proof requested.
To make automatic payments via Electronic Funds Transfer (EFT), complete the Electronic Funds Transfer (Form 3798) and include it with the Installment Agreement submission.
To make a payment online, visit Collections eService.
To authorize Treasury to communicate with an individual or entity acting on your behalf, complete and return the Form 151: Power of Attorney.