Treasury is reviewing the recently enacted tax law changes, including the new Marijuana Wholesale Tax. Developing clear and accurate information for tax stakeholders is our top priority. This guidance will be posted to our website in the coming weeks.
Notice of Proposed Penalty and Interest for Underpaid Estimates
This notice was sent because you did not make the required estimated payments. The Michigan Income Tax Act requires taxpayers to make quarterly estimated payments if the income tax liability will be $500 or more after credits and withholding.
To avoid penalty and interest for underpaid estimates, your total tax paid through credits and withholdings must be:
- 90% of your current year's tax liability or
- 100% of your previous year's tax liability or
- 110% of your previous year's tax liability if your previous year's adjusted gross income is more than $150,000 ($75,000 for married filing separate)
For more information view Penalty and Interest for Underpayment of Estimates (MI-2210)