Information current as of January 31, 2021.
The SARS-CoV-2 virus and the incidence of COVID-19 are changing life across the globe. Many taxing jurisdictions are taking mitigating actions to create social distance and aid taxpayers. The following is a running list of actions by jurisdiction, which generally result in additional time to file and/or pay. Further, many jurisdictions have closed their offices to in-person use by taxpayers and suspended their audit and administrative functions. This alert doesn’t cover similar waivers from local-level taxing authorities. These developments continue to quickly evolve; check with your BKD Trusted Advisor™ or visit our COVID-19 Resource Center for current information as needed.
Information Specific to Michigan
- Michigan is waiving late-filing penalties for sales and use tax and employer withholding for 30 days on original returns originally due March 20, 2020.
- Treasury Department Notice, March 17, 2020.
- Michigan is extending the deadline for residents to pay back property taxes and avoid foreclosure. The tax foreclosure deadline moves from March 31 to May 29, or 30 days after the state of emergency is terminated, whichever occurs first.
- Executive Order 2020-14, March 18, 2020.
- Michigan is extending the filing and payment deadline for state and local income tax as follows: an annual state income tax return/payment otherwise due on April 15, 2020, will instead be due on July 15, 2020, and an annual state income tax return/payment otherwise due on April 30, 2020, will instead be due on July 31, 2020. Estimated payments otherwise due on April 15 are now due July 15. All penalties and interest are abated through the extended due dates.
- Executive Order 2020-26, March 27, 2020.
- Michigan is waiving penalty and interest for 30 days for the late payment or late filing of any sales and use tax or withholding tax return (including the quarterly return) due April 20 (now due May 20, 2020).
- Treasury Department Notice, April 14, 2020.
- Michigan has further extended due dates for income taxes with full suspension of penalties and interest. Individual, fiduciary, and composite returns and payments otherwise due from April 15, 2020, and before July 15, 2020, are now due on July 15, 2020. Corporate income tax returns and payments otherwise due from April 30, 2020, and before July 31, 2020, are now due on July 31, 2020. The extended due dates apply to both calendar and fiscal year filers. They also apply to requests for additional extensions of time to file.
- Michigan Treasury Department Notice, April 17, 2020.
- Michigan is waiving penalty and interest for the late payment or filing of any monthly or quarterly sales, use and withholding tax return due May 20, 2020, for 31 days. The waiver is effective through June 22, 2020. The waiver applies to any payment or return that has previously been waived through May 20, 2020. Therefore, this waiver includes any monthly or quarterly payments or returns originally due on March 20 or April 20. The waiver doesn’t apply to accelerated sales, use or withholding tax filers.
- Treasury Department Notice, May 15, 2020, and May 26, 2020.
- Michigan is extending from June 1, 2020, to June 30, 2020, the deadline to file an affidavit to claim the principal residence exemption for the 2020 summer tax levy and all subsequent tax levies.
- Michigan S.B. 940 (P.A. 96), Laws 2020, effective June 24, 2020.
- Michigan has extended the suspension of all in-person administrative hearings with the Tax Tribunal through September 11, 2020, consistent with Gov. Gretchen Whitmer’s Executive Order 2020-151 and Executive Order 2020-154.
- Michigan Tax Tribunal Notice, August 3, 2020.
- Michigan will permit businesses that require social gatherings for customers, i.e., generally most entertainment and recreational venues and restaurants that depend on indoor dining, and have experienced disrupted operations due to COVID-19 pandemic orders to make their December sales, use and withholding (SUW) tax monthly payment on January 20, 2021 (instead of December 20, 2020). The Treasury Department will waive all penalties and interest for the additional 31 days.
- Michigan Treasury Notice, December 8, 2020.
- Personal property (including exempt personal property) that’s located on tax day in an alternate location due to the COVID-19 pandemic must be assessed in its ordinary location rather than in that alternate location. This provision applies notwithstanding any provision of the General Property Tax Act to the contrary, including those in Mich. Comp. Laws Ann. §211.13(1) and Mich. Comp. Laws Ann. §211.14(1). “Alternate location” means the geographic area of a local tax collecting unit that’s not the ordinary location of an item of personal property but is the location to which the property was moved due to the COVID-19 pandemic. “Ordinary location” means the geographic area of a local tax collecting unit where an item of personal property would have been located for its primary use if not for the need to move it to an alternate location due to the COVID-19 pandemic. Evidence of the ordinary location includes the following: (1) a business location of the owner or other person beneficially entitled to the property or in possession of it, where the property is usually deployed under conditions unaffected by the COVID-19 pandemic; and (2) if applicable, the geographic area of a local tax collecting unit where the property was located on December 31, 2019. “Exempt personal property” means personal property that’s exempt from the collection of taxes under the act, including personal property exempt under Mich. Comp. Laws Ann. §211.7 to Mich. Comp. Laws Ann. §211.7ww and Mich. Comp. Laws Ann. §211.9 to Mich. Comp. Laws Ann. §211.9o.
- S.B. 1203 (P.A. 352), L. 2020, effective for the 2021 tax year only.
- Michigan is automatically waiving penalty and interest for businesses affected by the section of the December 7, 2020, Michigan Department of Health & Human Services order prohibiting gatherings on the late reporting or payment of sales, use, and withholding tax for any non-accelerated return or payment due on January 20, 2021. The waiver lasts for 33 days; consequently, eligible taxpayers must report and pay the tax due by February 22, 2021.
- Michigan Department of Treasury, Notice; January 14, 2021.