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Penalty and Interest

  • Requests for a penalty waiver must be in writing. Penalty may be waived on an assessment if you can show reasonable cause for your failure to pay on time. Reasonable cause includes serious illness or death, a fire or natural disaster, or criminal acts against you. Documentation may be requested to substantiate the reason for your penalty waiver request. Reference RAB 2005-3.
  • Treasury does provide an "Offer in Compromise" program. This program allows taxpayers to submit an Offer to compromise a tax debt for less than the amount due based on specific criteria. To determine if you qualify visit www.michigan.gov/oic.