Tax Year 2025 Solutions Tracker

Issue: Notice of Adjustment letters were sent to taxpayers but the wording of the letters was unclear and caused confusion and an increase in contact center activity.

Solution Tracker

June 9, 2026

Based on feedback from external partners and tax professionals, Treasury paused generating new letters. The letters have been revised and mailing will resume late in the week of June 8, 2026.

Issue: An increased number of denials and/or errors related to Form 4884 have been acknowledged.

Solution Tracker

May 29, 2026

Retirement pension denials and/or errors have remained elevated. The March 16, 2026 update highlighted one potential scenario but all sections of the Form 4884 must be completed.

Respond to the Treasury notice with all of the following:

1. 1099R information
2. Deceased spouse’s Social Security number
3. Deceased spouse’s date of birth

March 16, 2026

It is important for filers who are filing with a 1099R Code 4 from a deceased spouse to complete Part 2 of the form and check the “Deceased Spouse” box in Part 3 of the form.

The form must include:

1. 1099R information
2. Deceased spouse’s Social Security number
3. Deceased spouse’s date of birth

Issue: When calling the Treasury Individual Income Tax contact center (517-636-4486) to check on refund status, the automated phone system was relaying delayed status updates due to a syncing issue between the phone system and processing system.

Solution Tracker

May 22, 2026

This issue will be resolved when Treasury’s phone system is modernized in late July 2026. Taxpayers can also use Michigan Treasury eServices to check their daily refund status. 

Issue: Treasury is sending Request for Information letters to taxpayers which is confusing them and causing a sharp increase in contact center activity.

Solution Tracker

May 19, 2026

Treasury is unable to complete the return processing using filed information, which could result in a tax credit denial and/or a tax due situation. If a taxpayer received a Request for Information letter then they should follow the instructions on the letter and/or use Michigan Treasury eServices to review account information.

Issue: Michigan Treasury’s Individual Income Tax Contact Center is experiencing high call volumes with extended wait times and full call queues, sometimes resulting in disconnected calls.

Solution Tracker

May 20, 2026

Updated instructions for how to request a callback from Treasury are now available.

May 13, 2026

A feature was added to Michigan Treasury eServices allowing taxpayers to request a call from Treasury.

Issue: Taxpayers who filed estimated payments and included the penalties for underpayment with their return may have received a refund equal to that penalty.

Solution Tracker

April 30, 2026

If a taxpayer receives an unexpected payment from Treasury – whether in the form of a check or direct deposit – they should return that payment and notify us via Michigan Treasury eServices.

Taxpayers can also use Michigan Treasury eServices to determine if they have an amount due. Notice of Assessments will be sent in the coming weeks, if the penalty payment has not been received prior to assessments being issued.

To return a payment to Treasury, mail the uncashed check and a statement on why you are returning the check such as “Treasury issued in error” back to Treasury at:

Michigan Department of Treasury
Office of Financial Services
P. O. Box 30788
Lansing, MI 48909

Issue: Tribal citizens are receiving letters regarding credit denial related to their status as Resident Tribal Members due to an identified system issue.

Solution Tracker

April 30, 2026

Tribal members who received this letter do not need to take any action at this time. A system fix is in progress and impacted returns will be corrected.

Issue: An error occurred in Notice of Adjustment letters dated between April 7 and April 28, 2026 related to estimated payments and credit carryforwards which affected the way information was displayed in these letters. We currently believe about 27,000 letters were sent to affected taxpayers.

Solution Tracker

May 5, 2026

Treasury has begun mailing new letters to impacted taxpayers which addresses the error.

April 23, 2026

The date range of affected letters has been revised to only include letters dated between April 7 and April 28 instead of March 30 through April 17 as previously indicated.

April 22, 2026

Taxpayer prepayments are properly accounted for and are reflected correctly in Michigan Treasury eServices. Taxpayers do not need to take any action at this time. We expect corrected letters to be issued before these taxpayers' right to appeal expires. If a taxpayer disagrees with their notice and has not received a correction before the right to appeal has expired as stated on the original letter, they should exercise their right to appeal.