Michigan to Require E-Filing
Updated: March 31, 2006
Arleen Mundy is a member of the NATP (National Association of Tax Professionals). As a member of the Michigan Chapter NATP state legislative committee, she meets annually with the department heads of the various individual and business taxing units of the Michigan Treasury.
In a round table discussion, we represent the tax-practitioner community asking questions of Treasury officials to help resolve general and, sometimes, specific issues. We also get first-hand information on what's new with Michigan taxes and procedures.
Additional Information
The hot topic this year from the income tax division is the mandated requirement for paid professionals to electronically file Michigan tax returns.
The State of Michigan has mandated that all paid preparers who file more than 200 tax returns must file the returns they prepare electonically. Paper returns will still be accepted, but because no temporary help will be hired this coming tax season to help open and to sort paper returns for processing, those tax returns that are prepared on paper will not be processed as fast as in the past. Michigan paper returns might be processed in months rather than in weeks.
The people we spoke with are interested in helping Michigan taxpayers file the proper returns and credit forms.
Our elected state representatives make the laws. The Treasury folks just implement the collection procedures, to make sure the funds that the governor budgets are there. The same is true for IRS. The IRS does not make the laws, our elected Congress does.
Electronically filed returns are transmitted via a secure line. It is recommended that your refunds be directly deposited into a bank account as this also saves the state the expense of printing and mailing a refund check.
If a Michigan return is filed electronically with a balance due, the amount owed does not have to be paid until April 15th, 2003. The return could be filed electronically prior to that date. There will be no penalty as long as the amount owed is less than $500. Just mail in a balance due voucher with your payment. Be sure to indicate your Social Security number and the form you are paying. For example: 2003 Form MI-1040.
Our governor is soliciting input from Michigan citizens on how to save our treasury's money. By filing electronically, you are helping our state.
Arleen Mundy,
Arleen Mundy & Co.
Commerce Township, MI 48382
(248) 360-4829
Successfully passed the Michigan CPA exam
Previous VP of the Michigan Society of Enrolled Agents,
(licensed by the IRS to represent taxpayers before the Internal Revenue Service)
Accredited Accountant and Tax Professional,
by the Accreditation Council for Accountancy & Taxation, Inc.
Specific questions will necessitate charging a fee, but short general questions will be gladly answered.
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Original article Posted: November 2, 2003
By Annette M. Hall
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As a cost cutting measure the State of Michigan has declared that temporary workers will not be hired this January, as usual, to process tax returns.
The state normally hires two-hundred seasonal workers during the tax season to open, enter and route income tax returns received by mail.
This year due to Michigan's looming deficit, Governor Granholm has informed tax consulting firms around the state that for the first time, since its inception all tax returns must be filed electronically.
Individuals may still opt to file manually. However, those who do choose to file their tax return the old fashioned way, could have a long wait before they actually see their checks.
Treasurer Rising commented, "If we don't see the increase in e-filing that we expect, processing times for paper returns could be much longer."
"In previous years, with two-hundred seasonal employees brought in to help process income tax returns, taxpayers who filed error-free paper returns would receive refund checks in four-to-six weeks," said Treasurer Rising
According to the latest statistics from the Department of Treasury's Bureau of Tax Processing, nearly one-third of all Michigan taxpayers chose to e-file their 2002 income tax returns. "Michigan ranks third in the nation in the number of taxpayers who e-file their individual income taxes," said State Treasurer Jay B. Rising.
In excess of 1.7 million Michigan taxpayers opted to file their 2002 return electronically and as a result, had their refund checks in hand within seven business days.
This policy change has the potential to negatively affect low income taxpayers and the elderly who may not have the resources to electronically file.
Will this be another failure for Michigan families?
As those who are longing for the days when you spent hours standing in line to apply for unemployment benefits can attest, recent changes have been painful at best. Since the inception of Marvin frustration levels have soared. Applying for benefits can be a real challenge.
Complaints range, from busy signals, on an overloaded hotline, to a lack of assistance, due to the state's latest early retirement program, in which 397 of the Bureau of Workers and Unemployment Compensation's 1,202 employees retired. The agency expects to replace only 79 employees.
Only time will tell.
If the state does not do a better job notifying taxpayers of this change, two-thirds of all taxpayers will be found waiting beside their mailboxes for a very long time.
The state recommends those seeking more information about filing your 2003 Michigan Individual Income Tax return electronically, free e-file services, and help finding a tax preparation professional near you, go to www.mifastfile.org.
Editors Note: Due to budget reductions, the Internal Revenue Service did not sponsor E-File Workshops across the State of Michigan as in years past, so the Independent Accountants Association of Michigan stepped in to sponsor three workshops, which were held in October, since recently-mandated directives now require any commercial preparer who files 200 or more returns to file them electronically.
