Get started resolving your state tax liabilities using the information below.  If you still need help, reach out to us using the contact form to the right of this page.

You could start with the super boring Taxpayer Rights Handbook, but it’s pretty boring. Hopefully the information below will get you started resolving yourMichigan tax debt.

MI-DOT Monthly Payment Plan

The basics – You get 24 - 48 months to pay back your tax liability.  Michigan offers more than 48 months, on rare occasion, if a review of your finances proves an inability to pay within the standard 2-year period. 48+ months is very difficult to get for a business tax liability.

Michigan also uses MARCS (Michigan Accounts Receivable Collection System) to collect back taxes.  You can set up an Installment Agreement through them, but don’t think that just because you’ve contacted MARCS that collection action on your account will stop.  MARCS doesn’t make or enforce the rules.  They’re just a privately owned company trying to make a buck by collecting the tax for the state.

State of Michigan Offer in Compromise

Beginning January 2015, the Department of Treasury will consider an Offer in Compromise.  What took them so long?

The State of Michigan throws a lot of information at you about this.  But if you take it step by step, it can be done.  And if you’ve had an Offer in Compromise accepted by the IRS, it could make your MI-DOT Offer a lot easier.

Penalty Relief

According to the web version of the Taxpayer’ Rights & Responsibilities (Rev. 03-16):

Penalty on an assessment may be waived if reasonable cause for failure to pay on time is demonstrated.  Reasonable cause may be serious illness or death, a fir or natural disaster, or criminal acts against the taxpayer. The penalty waiver will apply only to periods directly affected by the circumstances.  Waiver request must be made in writing.

In our experience, it’s really difficult to get Michigan to waive penalties.  I mean, it took them until 2015 to provide an Offer in Compromise program.  They’re not exactly forgiving of taxpayer struggles.

page last reviewed 10/18/2021


Our Specialties

  • Tax Debt Resolution / Tax Relief
  • Offer in Compromise / IRS Settlement
  • IRS Penalty Abatement and Relief
  • Installment Agreement / Monthly Payment Plan
  • Tax Lien, Levy and Garnishment Removal
  • IRS Lien Subordination, Withdrawal, Discharge
  • Enrolled Agents / Tax Debt Specialists

Fresh Start Tax Relief LLC, Taxes - Consultants & Representatives, Chicago, IL

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