Michigan Governor Signs State Tax Amnesty Program Into Law

DETROIT ? On October 5, Gov. Jennifer Granholm signed a tax amnesty program that provides for a 45-day period beginning May 15, 2011, through June 30, 2011, for taxes administered by the Michigan Department of Treasury due before January 1, 2010.

During the Michigan Amnesty period, the Department may waive criminal

and civil penalties for failing or refusing to file a return, failing to

pay or underpaying a tax, or making an excessive claim for a tax refund. A

taxpayer wishing to take advantage of the Michigan Amnesty program must

complete an amnesty waiver request form, file and/or amend tax returns, and

pay all taxes and interest due on or before June 30, 2011.

The Michigan Amnesty program does not apply if the tax due is

attributable to income derived from a criminal act. A taxpayer is not

eligible for the Michigan Amnesty program if he or she is under criminal

investigation or involved in a civil action or criminal prosecution for

tax, or has been convicted of a felony under the Michigan Tax Act or the

Internal Revenue Code of 1986. Further, if a taxpayer is eligible to enter

into a voluntary disclosure agreement (VDA), the taxpayer must enter into a

VDA and cannot participate in the Michigan Amnesty program.

SB 884 instructs the Department to provide a description of the

Michigan Amnesty program on the Internet at least 30 days before the May

15, 2011 start date.

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