Taxpayer-Initiated Disclosure

Letter Application

1. Requests a waiver of penalty under Taxpayer Initiated Disclosure for Individual Income Tax
2. Identifies applicant by name, Social Security Number, and periods being filed
3. Includes contact information (i.e. mailing address, phone number, and email address)

Returns

Returns must be completed and submitted for all years of disclosure, with copies of federal returns.

Please print "Taxpayer Initiated Disclosure" on the top of all forms. Michigan tax forms can be obtained on our website, www.michigan.gov/taxes.

Complete and submit the following, as applicable:

1. Form MI-1040, Individual Income Tax Return(s) for the lookback period
2. Any necessary supporting forms for each MI-1040, which can include:
   • Schedule 1, Additions and Subtractions
   • Schedule NR, Nonresidents and Part-year Resident Schedule
   • Form 4884, Pension Schedule
   • Schedule W, Withholding Tax
   • Schedule MI-1040H, Schedule of Apportionment
   • Other appropriate form(s) not listed
3. Copies of Form US-1040, Federal individual income tax return(s), for each MI-1040

Payment for Tax and Interest

Filing returns and submitting payment of tax and interest is required to obtain a waiver of penalty.

1. Full payment of tax and interest for each MI-1040
   • Write a separate check for each MI-1040
   • Make checks payable to "State of Michigan"
   • Write your Social Security Number, "IIT" and the tax year on each check
   • Use our online calculator to calculate interest
2. Form MI-1040ES, Estimated Individual Income Tax Voucher and payment for any past due quarters of the current year (unless an employer is already withholding payroll tax on your behalf)
3. Form 4, Application for Extension of Time to File Michigan Tax Returns (or a copy of the federal extension) and extension payment, if the most recent tax year is under extension

Interest must be included in payment. Interest is statutory for past due periods and cannot be waived. Omission of interest will delay processing and may result in penalties.

Submit

Mail the letter, returns and payment to: Michigan Department of Treasury, P.O. Box 30140, Lansing, MI 48909

After returns are processed, an acknowledgement letter will be sent to the applicant.

Letter Application

1. Requests a waiver of penalty under Taxpayer Initiated Disclosure for Sales, Use and/or Withholding Tax
2. Identifies applicant by name, Federal Employer Identification Number (FEIN) or equivalent, and periods being filed
3. Includes contact information (i.e. mailing address, phone number, and email address)

Registration - Online via MTO

Complete registration thru Michigan Treasury Online (MTO)/UIA website. Identify tax type and begin date of the disclosure. (If necessary, already registered applicants update the tax type and/or begin date of disclosure via MTO.)

New registrations should select "Annual" / "Up to $62" for filing frequency. (The disclosure periods will be completed on an annual basis using the provided workbook, even if returns were previously filed. For the next calendar year, the Department may adjust your filing frequency and notify entity by mail.)

Note: Registering via MTO will take users to the UIA website - this is normal. Follow the steps at New Business Registration. Help resources are also available at MTO Help.

Returns

Past due Sales, Use and Withholding annual returns for the lookback period must be completed on our MI SUW Workbook. Any periods within the lookback that lack nexus with Michigan or would otherwise have zero taxable sales, must still be included.

Download MI SUW Disclosure Workbook

Do Not file any monthly, quarterly, or annual returns. Do Not mail the MI SUW Disclosure Workbook. Only the MI SUW Disclosure Workbook can be used (available online here or by email upon request). No third party/ad hoc spreadsheet will be accepted.

1. Current Calendar Year
   • If no annual return is due yet, file a Form 5081 by the appropriate due date for the complete calendar year. An advanced payment based on taxable transactions is required for the past due months. See payment info below. Do Not include those months in the MI SUW Disclosure Workbook.
   • If annual return is due, include this period in the MI SUW Disclosure Workbook in the appropriate tax type section.
   • Important: If applicant began filing Streamlined Sales Tax (SST) returns part way through the a calendar year, past due monthly return returns are expected to be filed on Form 5080s. Do Not include those months in the MI SUW Disclosure Workbook. These monthly return filings should begin January and end when SST filings began. Only these months are affected. Any past due calendar years within the lookback should be filed using the MI SUW Disclosure Workbook or any other spreadsheet. Do Not file quarterly or annual returns.
2. Past Due Calendar Years - Input data per year into MI SUW Disclosure Workbook. Only enter data into the appropriate tax type (e.g. Sales, Use and/or Withholding). Only enter 2015 and later periods into 'Taxpayer Data A'. Only enter 2014 and prior periods into 'Taxpayer Data B'. Do Not calculate discounts. Enter the date payment is made into 'Planned Date Payment Sent' field to compute interest.

Payment for Tax and Interest

Filing returns and submitting payment of tax and interest is required to obtain a waiver of penalty.

Payments must be remitted per calendar year via Michigan Treasury Online (MTO). Do Not submit combined or lump sum payments.

1. Visit MTO
2. Setup a user profile (or login if you already have one created). Do Not share user profile login info
3. Use Guest Services option Fast Pay and input separate payments for each year,
   • Enter one period at a time
   • Select 'Sales, Use and Withholding Tax' (Do Not select 'Audit Payment')
   • Select 'Annual'
4. On Fast Pay screen, select only the tax type under disclosure and enter tax and interest

If an advanced payment is required for the past due months of the current calendar year, the advanced payment can be a lump sum of the total months tax and interest. The advanced payment will be applied to the annual return.

Currently, MTO will not allow individual payments for years prior to 2018. Applicants can submit a lump sum payment of tax and interest for all periods prior to 2018, as an additional separate payment under '2018'.

Interest must be included in payment. Interest is statutory for past due periods and cannot be waived. Omission of interest will delay processing and may result in penalties.

Submit

Register via MTO and complete MI SUW Disclosure Workbook.

After registration is active, (1) submit payments via MTO, and (2) email the letter and MI SUW Disclosure Workbook to: Treas-Dis-VoluntaryDisclosure@michigan.gov.



Alternatively, payments may be made by check and voucher. Payment per calendar year must be made. Do Not submit combined or lump sum payments. Make each check payable to 'State of Michigan' and include, the account number (FEIN or TR Number), tax type (e.g. 'Sales', 'Use', 'Sales and Use', and 'Withholding'), and corresponding calendar year. Complete Form 5094, Sales, Use and Withholding Payment Voucher for each calendar year. Do Not submit multiple calendar years on one voucher. Do Not complete penalty field. Mail vouchers and checks to: Michigan Department of Treasury, P.O. Box 30406, Lansing, MI 48909.



After returns are processed, an acknowledgement letter will be sent to the applicant.

Letter Application

1. Requests a waiver of penalty under Taxpayer Initiated Disclosure for Corporate Income Tax
2. Identifies applicant by name, Federal Employer Identification Number (FEIN) or equivalent, and periods being filed
3. Includes contact information (i.e. mailing address, phone number, and email address)

Registration - Form 518

Complete and submit Form 518, Registration for Michigan Taxes identifying the tax type and begin date of the disclosure. (Even if applicant is already registered, we will require an updated Form 518.)

Third party representatives cannot sign Form 518. It must be signed by an owner, shareholder, or officer.

Returns

Returns must be completed and submitted for all years of disclosure, with copies of federal returns.

Please print "Taxpayer Initiated Disclosure" on the top of all forms. Michigan tax forms can be obtained on our website, www.michigan.gov/taxes.

Complete and submit the following, as applicable:

1. Corporate Income Tax Return(s) for the lookback period and any necessary supporting forms for each return
2. Copy of pages 1-5 or 1-6 of the Federal return(s), Form 1120 and any applicable supporting forms (see FAQs for further info)

Make sure to include gross receipts on line 11 (Form 4891). Do Not include a reconciliatory Form 4897 (if UBG), the return will not be accepted.

Payment for Tax and Interest

Filing returns and submitting payment of tax and interest is required to obtain a waiver of penalty.

1. Full payment of tax and interest for each Corporate Income Tax return
   • Write a separate check for each return
   • Make checks payable to "State of Michigan"
   • Write your FEIN, "CIT" and the tax year on each check
   • Use our online calculator to calculate interest
2. Form 4913, Corporate Income Tax Quarterly Return(s) voucher and payment for any past due quarters of the current year
3. Form 4, Application for Extension of Time to File Michigan Tax Returns  and extension payment, if the most recent tax year is under extension

Interest must be included in payment. Interest is statutory for past due periods and cannot be waived. Omission of interest will delay processing and may result in penalties.

Submit

Send letter and Form 518 to: Treas-Dis-VoluntaryDisclosure@michigan.gov or Discovery and Tax Enforcement Division, P.O. Box 30140, Lansing, MI 48909

Mail returns and payment together to: Michigan Department of Treasury, P.O. Box 30804, Lansing, MI 48909

Alternatively returns can be eFiled using preparer's software and payments can be made electronically via Michigan Treasury Online (MTO) Guest Services option Fast Pay

After returns are processed, an acknowledgement letter will be sent to the applicant.

Letter Application

1. Requests a waiver of penalty under Taxpayer Initiated Disclosure for Composite Individual Income Tax
2. Identifies applicant by name, Federal Employer Identification Number (FEIN) or equivalent, and periods being filed
3. Includes contact information (i.e. mailing address, phone number, and email address)

Returns

Returns must be completed and submitted for all years of disclosure, with copies of federal returns.

Please print "Taxpayer Initiated Disclosure" on the top of all forms. Michigan tax forms can be obtained on our website, www.michigan.gov/taxes.

Complete and submit the following, as applicable:

1. Form 807, Composite Individual Income Tax Return(s) for the lookback period
2. Any necessary supporting forms for each Form 807, which can include:
   • Schedule A, Schedule of Participants and sub-schedules for participants that are other FTEs
   • Schedule B, Schedule of Michigan Nonparticipants
   • Schedule C, Schedule of Michigan Resident Members
   • MI-1040H, Schedule of Apportionment
   • Any other applicable form(s)
3. Pages 1-5 of the U.S. Form 1065 or pages 1-4 of the U.S. Form 1120S, for each Form 807

Important: Only entities with more than one nonresident, shareholder/partner can elect to file Form 807. Entities with one individual should file Michigan Individual Income Tax.

Payment for Tax and Interest

Filing returns and submitting payment of tax and interest is required to obtain a waiver of penalty.

1. Full payment of tax and interest for each Composite Individual Income Tax return
   • Write a separate check for each return
   • Make checks payable to "State of Michigan"
   • Write your FEIN, "Composite" and the tax year on each check
   • Use our online calculator to calculate interest
2. Form MI-1041ES, Estimated Income Tax Voucher for Fiduciary and Composite Filers and payment, for any past due quarters of the current tax year
3. Form 4, Application for Extension of Time to File Michigan Tax Returns (or a copy of the federal extension) and payment, if the most recent tax year is under extension

Interest must be included in payment. Interest is statutory for past due periods and cannot be waived. Omission of interest will delay processing and may result in penalties.

Submit

Mail the letter, returns and payment to: Michigan Department of Treasury, P.O. Box 30140, Lansing, MI 48909

After returns are processed, an acknowledgement letter will be sent to the applicant.