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Qualification Requirements

To qualify for voluntary disclosure a person must meet the following criteria:

  1. have not previously filed a tax return for the particular tax being disclosed for periods beginning after December 31, 1988.
  2. have a filing responsibility under the nexus standards issued by the Department of Treasury after December 31, 1997 -or- have a reasonable basis to contest a liability as determined by the Commissioner for a tax or fee administered under the Revenue Act.

All taxes and fees administered by the Revenue Act are eligible for inclusion in a voluntary disclosure agreement. Michigan resident taxpayers do not qualify for voluntary disclosure. (Letter Ruling 2002-03)

Revenue Administrative Bulletins (RABs) 2008-4, 2014-5, 2007-6 and 1999-1 describe the jurisdictional standards for Michigan Business Tax, Corporate Income Tax, Actively Solicits, and the jurisdictional standards for Use Tax, respectively.

A person qualifying under the above criteria may be eligible for a voluntary disclosure agreement if all of the following requirements are met:

  1. Has had no previous contact by the Department or its agents regarding a tax covered by the agreement. Previous contact means any notification of an impending audit pursuant to section 205.21(1), review, notice of intent to assess, assessment or subpoena from the Department. A letter of inquiry is not considered a previous contact. However, a person will not qualify for voluntary disclosure after receiving a final letter of inquiry.
  2. Is not currently under audit by the Department of Treasury or under investigation by the Department of State Police, Department of Attorney General, or any local law enforcement agency regarding a tax covered by the agreement.
  3. Is not currently the subject of a civil action or a criminal prosecution involving any taxes covered by the agreement.
  4. Has agreed to register, file returns, and pay all taxes due for all taxes administered under the Revenue Act for periods after the lookback period.
  5. Has agreed to file returns and worksheets specified in the agreement and pay all the taxes and statutory interest for the entire lookback period within the time period and manner specified in the agreement.