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Here’s what to do if you missed Michigan’s income tax return filing deadline on July 15

Options available to help Michiganders claim income tax refund, pay tax bills

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Individual income tax returns were supposed to be filed by July 15 in Michigan -- an-already extended deadline amid the coronavirus (COVID-19) pandemic.

If you missed last week’s deadline, the Michigan Department of Treasury says you still have options to claim your refund or make payments to limit interest charges and late payment penalties. State income tax returns can be claimed within four years.

For Michigan tax filers who missed the July 15 deadline, the state treasury listed the following actions to consider:

  • Filing 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. Go to www.michigan.gov/mifastfile to learn more about e-filing.
  • Filing 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.
  • Paying as much tax as possible. If taxpayers have to pay outstanding taxes but 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. Treasury will work with taxpayers who cannot pay the full amount of tax they owe.

For Michigan taxpayers who receive a final tax bill and can’t pay the entire amount, the state treasury listed the following options to consider:

  • Requesting 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.
  • Making monthly payments through an installment agreement. For Installment Agreements lasting for 24 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 Treasury.
  • Filing 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 www.michigan.gov/oic.

Officials say the last three options listed above should be filed separately from the state income tax return.