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Voluntary Disclosure

Voluntary Disclosure

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Overview

Benefits

Lookback

Eligibility

How to Apply

Penalty Relief

Agreement Terms

Revenue Administrative Bulletins

FAQs

Overview

Voluntary Disclosure was designed to allow non-residents to voluntarily come forward and report unpaid taxes. In exchange for payment of tax and interest and future tax compliance, a limited lookback period and waiver of penalty may be offered.

Benefits

  • Benefits for eligible applicants include:
  • Limited lookback period Penalty waiver

All agreements will be kept confidential and terms and conditions will not be disclosed except for provisions listed within MCL 205.30c.

Lookback

Lookback period for eligible applicants is up to a maximum of four years.

Eligibility

All taxes and fees administered by the Revenue Act are eligible for inclusion in a voluntary disclosure agreement. Requirements for eligibility:

  • Has a filing responsibility under nexus standards
  • Not a prior filer for the tax being disclosed
  • No previous contact by the department and is not under audit for the tax being disclosed
  • Not subject to civil action or criminal prosecution for the tax type being disclosed
  • Not domiciled, incorporated, or a resident of Michigan

Note: Michigan resident taxpayers are not eligible for voluntary disclosure but may apply for Taxpayer-Initiated Disclosure (LR 2002-03).If an applicant applies for voluntary disclosure and later discovers they are not eligible, they have the option to remit with a penalty waiver. Please refer to our FAQs for more information.

How to Apply

An applicant can apply for voluntary disclosure by completing and returning Forms 1353 and 4133. These forms can be mailed, faxed, or emailed back to the department.

  • Mailing address: Michigan Department of Treasury, Discovery and Tax Enforcement, P.O. Box 30140, Lansing, MI 48909-7640
  • Fax: (517) 763-0258
  • Email: Treas-Disc-VoluntaryDisclosure@michigan.gov or the auditor at the bottom of your letter.

If you have any questions, please call our main line at 517-636-4120 and ask for an auditor (or contact the auditor at the bottom of your letter).

Penalty Relief

To seek penalty relief, the applicant is required to follow through with the signed agreement terms by filing for related periods and paying tax and interest.

Agreement Terms

Sample agreement

Revenue Administrative Bulletins

RAB 2005-3, Penalty Provisions

RAB 2014-5, Michigan Corporate Income Tax Nexus Standards

RAB 2021-21, Sales and Use Nexus Standards for Remote Sellers

RAB 2021-22, Sales and Use Tax - Marketplace Facilitators and Sellers

LR 2002-03, Availability of Voluntary Disclosure Relief to Michigan Residents and Businesses

 


FAQs