On October 5, 2010, the Governor of Michigan signed Senate Bill 884 (“SB 884”), which provides for a 45-day tax amnesty (“Michigan Amnesty”) period beginning May 15, 2011 and ending June 30, 2011. The program applies to taxes administered by the Michigan Department of Treasury (“Department”) that were 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.