Tax Year 2025 Solutions Tracker

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.

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

Solution Tracker

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