Taxpayers have options for filing late income tax return
MICHIGAN (WNEM) - Michigan taxpayers have options for filing a late state individual income tax return if they missed the April 18 deadline.
The Michigan Department of Treasury made the announcement for late tax filing on Thursday, April 27, saying taxpayers have three options to file a late return.
“Taxpayers who have an outstanding refund shouldn’t hesitate to file a return. We want to unite you with your money,” said Glenn White, who oversees Treasury’s Revenue Services programs. “If you have an outstanding tax debt and cannot make full payment, we will work with you on payment options. Our goal is to help taxpayers limit interest charges and late payment penalties.”
The Department of Treasury recommends the following for past-due tax filers to consider:
- File a return to claim an outstanding refund. Taxpayers risk losing their state income tax refund if they don’t file a return within four years from the due date of the original return. Visit their website to learn more about e-filing.
- File a return to avoid interest and penalties. File past due returns and pay now to limit interest charges and late payment penalties. Failure to pay could affect a taxpayer’s credit score and the ability to obtain loans.
- Pay as much tax as possible. If taxpayers owe outstanding taxes and can’t pay in full, they should pay as much as they can when they file their tax returns. Payments can be made using Michigan’s e-Payments service. When mailing checks, carefully follow tax form instructions. The Department of Treasury will work with taxpayers who cannot pay the full amount of tax they owe.
Taxpayers should consider the following if they receive a final tax bill and are unable to pay the entire amount owed:
- Request a penalty waiver. Penalty may be waived on an assessment if a taxpayer can show reasonable cause for their failure to pay on time. Reasonable cause includes serious illness, a fire or natural disaster, or criminal acts against you. Documentation should be submitted to substantiate the reason for a penalty waiver request.
- Make monthly payments through an installment agreement. For Installment Agreements lasting for 48 months or less, taxpayers must complete, sign and return the Installment Agreement, form 990. The agreement requires a proposed payment amount that will be reviewed for approval by the Department of Treasury.
- File an Offer in Compromise application. An Offer in Compromise is a request by a taxpayer for the Michigan Department of Treasury to compromise an assessed tax liability for less than the full amount. For more information or an application, visit their website.
The Department of Treasury said the last three options for final tax bills should be filed separately from the state income tax return.
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