Notice: SUW Penalty and Interest Waiver Until June 22

PENALTY AND INTEREST WAIVED FOR 33 DAYS FOR MONTHLY AND QUARTERLY SALES, USE, AND WITHHOLDING RETURNS DUE MAY 20, 2020

Issued: May 15, 2020

Updated: May 26, 2020

Executive Order 2020-67 declared both a state of emergency and state of disaster across Michigan related to the spread of the novel coronavirus (COVID-19).  In recognition of the continued disruption of businesses required to file returns and remit sales, use, and withholding taxes, the Department of Treasury is waiving penalty and interest for the late payment of tax or the late filing of any monthly or quarterly return due on May 20, 2020. The waiver will be effective for a period of 33 days; therefore, any monthly or quarterly payment or return currently due on May 20, 2020 may be submitted to the Department without penalty or interest through June 22, 2020.[1]

This waiver is applicable to any payment or return for which penalty and interest has previously been waived through May 20, 2020. This waiver therefore includes any monthly or quarterly payments or returns originally due on either March 20, 2020 or April 20, 2020 (See Notice). Accordingly, for quarterly return filers, the 2020 first quarter return and payment that was originally due April 20, 2020 may now be filed without penalty or interest through June 22, 2020. Likewise, for monthly return filers, the monthly returns and payments originally due on March 20, April 20, and May 20, 2020 may now be filed be filed without penalty or interest through June 22, 2020.

Taxpayers may still remit tax and file returns as of the original due date and are encouraged to do so.  However, penalty and interest for any failure to do so will automatically be waived in accordance with this Notice.  The waiver is limited to sales, use, and withholding returns and payments currently due on May 20, 2020. Any payment or return otherwise due after that date will not be eligible for the current waiver. The waiver is not available for accelerated sales, use or withholding tax filers. Those taxpayers should continue to file returns and remit any tax due as of the original due dates.

 

[1] Returns and payments are generally due on the twentieth of each month, except that if such date falls on either a Saturday, Sunday, state holiday, or legal banking holiday, then the due date is the next succeeding business day. MCL 205.56(6). Because June 20, 2020 falls on a Saturday, any return or payment otherwise due on that date may be filed on the next succeeding business day (i.e., June 22).