Updated April 29, 2026
Members recently made MICPA aware of an issue involving Michigan Department of Treasury (Treasury) notices indicating that certain 2025 estimated payments were not applied to taxpayers’ annual returns, despite confirmation that payments had been made. Treasury has since provided a response, linked below.
Following MICPA’s outreach, Treasury acknowledged that an error occurred in certain taxpayer letters related to estimated payments and credit carryforwards. The department confirmed that taxpayer prepayments are accurately reflected in its eServices system and that no action is required at this time. Corrected notices will be issued once the issue is fully resolved.
Treasury has paused sending additional notices while working toward a fix.
Read Treasury Response Letter
(Michigan Treasury Response Updated 4/29)
In addition, members have reported a separate issue in which clients are receiving refund checks, without explanation, equal to the Section 2210 underpayment penalties reported on their returns.
Treasury asks CPAs to advise their clients not to cash these checks, as doing so may complicate correcting any potential error.
If a taxpayer receives a refund in error, they should mail the uncashed check to:
Michigan Department of Treasury
P.O. Box 30788
Lansing, MI 48909
Include with the uncashed check a written statement explaining why the check is being returned and retain a copy for your records.
If unsure whether a refund was issued in error your client can:
- Set up an account with MiLogin to use Michigan Treasury eServices to submit an inquiry and receive a response, or
- Contact the Individual Income Tax Contact Center at 517-636-4486.
Treasury has also issued guidance for CPAs to share with clients that did cash an erroneous refund check.
Those who cashed an erroneous refund check will receive a notice from Treasury in the form of a reminder of tax due or an Intent to Assess.
- All notices include a Letter ID in the upper right corner that can be used to respond to the letter and pay online through Michigan Treasury eServices.
- If the notice they receive is an Intent to Assess it will have a voucher attached. Either notice will include the amount of the refund check(s) cashed plus penalty and interest.
Taxpayers wishing to request a penalty and interest waiver, must do so in writing and can submit payment for only the amount of the cashed refund omitting the penalty and interest included on the notice.
While payments can be made online, if the taxpayer is requesting a penalty and interest waiver Treasury encourages them to make the payment by mail including the voucher if applicable, and include their written request for the penalty and interest waiver so they are received at the same time.
MICPA recognizes there is more to be done and will continue to share member concerns and feedback with Treasury. Thank you to the many members who quickly brought this issue to our attention, allowing us to elevate and address it promptly through advocacy.
MICPA will continue to keep you informed as more information becomes available.
