Skip to main content

Revenue Administrative Bulletin 1989-37


Approved: April 25, 1989

RAB-89-37. This Bulletin details the time period during which the Department of Treasury may collect a non-jeopardy final assessment of a tax liability.              


Mailing of Notice of Assessment Required

The Michigan Revenue Act, MCL 205.21. requires that the Department give a taxpayer notice of a final assessment. The Act at MCL 205.28 indicates that if notice is required to be given, then it shall be given either by personal service or by certified mail. When mailed, the notice must be sent to the taxpayer’s last known address.


Commencement of Collection Action

When the Department has properly notified the taxpayer of a final assessment, the Department may begin collection action after 10 days of notice. [MCL 205.25(1)] However, the Department generally allows the taxpayer 30 days to pay the bill before collection action begins.


In a jeopardy assessment situation, the Department may issue a demand for immediate payment of the bill. This occurs when the Department has reason to believe that the taxpayer may quickly leave the State or remove property from the State or in some other way jeopardize collection of tax. [MCL 205.26]


General Statute of Limitations

The statute of limitations that governs the collection of taxes administered by the Department is found under the Revised Judicature Act, MCL 600.5813. Legal proceedings may be commenced by the Department for a period of 6 years after a final assessment of a tax deficiency. MCL 600.5813 provides that: “All other personal actions shall be commenced within the period of 6 years after the claims accrue and not afterwards unless a different period is stated in the statutes.” 

Neither the Revenue Act nor the specific taxing statutes governed by the Act contain a specific statute of limitations. Therefore, the above provision applies to collection efforts by the Department. The time period to collect an assessed liability of tax is not extended where the Department makes an adjustment to a finalized assessment that is not in litigation. Statute of Limitations Suspended During Litigation of Assessment

The time period to effect collection of a final assessment is extended for the periods that the assessment is under litigation, conference, or audit. Litigation involves an appeal of the assessment to the Michigan Tax Tribunal, Michigan Court of Claims, Michigan Cour of Appeals, Supreme Court, or other court of competent jurisdiction. The statute of limitations on collections may also be extended by reaffirmation to the tax debt. Reaffirmation of a tax debt will occur if the taxpayer:


  1. Makes voluntary payments,
  2. Signifies to the debt on a letter of acknowledgement, or
  3. Mutually agrees to extend by signing an agreement with the Commissioner of Revenue.


The statute may be tolled if the Department is unable to locate the taxpayer.