Michigan Tax Notice Update: Incorrect Estimated Payment Letters and Refund Checks
Some Michigan taxpayers are receiving state notices and checks that don’t match what they actually filed and paid. Below is what we know so far, what you should (and shouldn’t) do, and when to contact our office.
Issue 1: Notices showing 2025 estimated payments as “unapplied”
The Michigan Department of Treasury (Treasury) has confirmed that certain letters were generated in error and may show 2025 estimated payments (and some credit carryforwards) as not applied, even though the payments were made. Treasury has indicated that prepayments are reflected correctly in the Michigan Treasury eServices system, and affected taxpayers do not need to respond at this time. Revised notices will be issued once the correction is completed.
Treasury has temporarily paused additional notices while it implements a fix.
Issue 2: Unexpected refund checks related to Section 2210 underpayment penalties
In a separate situation, some clients are receiving refund checks that appear to equal the Section 2210 underpayment penalty amounts reported on their returns.
If you receive one of these checks: do not cash it. Cashing the check may complicate the correction process.
How to return an uncashed check
If the refund appears to have been issued in error, mail the uncashed check to:
Michigan Department of Treasury
P.O. Box 30788
Lansing, MI 48909
Include a short written statement explaining why you are returning the check, and keep a copy for your records.
Not sure whether your refund is correct? You can verify by:
- Setting up a MiLogin and using Michigan Treasury eServices to submit an inquiry, or
- Calling the Individual Income Tax Contact Center at 517-636-4486.
If you already cashed the check
If you cashed an erroneous refund check, you may receive a follow-up notice from Treasury—typically a reminder of tax due or an Intent to Assess.
- Look for the Letter ID (upper right). You can use it to respond and pay online through Michigan Treasury eServices.
- An Intent to Assess notice typically includes a voucher. The notice may list the amount of the refunded check(s) that were cashed, plus penalty and interest.
If you plan to request a waiver of penalty and interest, Treasury requires a written request. In many cases, you can pay only the amount of the cashed refund (and not the penalty and interest shown on the notice) while the waiver request is considered.
Treasury notes that payment can be made online, but if you are requesting a waiver, it may be helpful to mail your payment (including the voucher, if applicable) together with your written waiver request so they are received as a single package.
What to do next (and how we can help)
If you receive any letter, notice, or check from the State of Michigan that you don’t understand—or that doesn’t match your records, send it to our office before taking action. We can review the correspondence, confirm whether it was issued in error, and help you respond appropriately.
