Michigan Amnesty or Voluntary Disclosure: Don't Choose the Wrong One!
As I stated in an earlier post, Michigan has created an Amnesty program that runs from May 15 to June 30, 2011. However, all taxpayers are NOT eligible to take advantage of this program.
Please note that Michigan’s Amnesty program does NOT apply to taxpayers that are eligible to enter into Michigan’s Voluntary Disclosure Program.
In simple terms, a taxpayer is eligible to enter into the Voluntary Disclosure Program if:
1. The taxpayer has not been contacted by Michigan,
2. The taxpayer has “nexus” or a taxable presence in Michigan, and
3. The taxpayer has not filed a tax return.
The Voluntary Disclosure Program has a four-year look-back period. The Amnesty program covers all tax periods prior to January 1, 2010. Therefore, the look-back period may be longer under the Amnesty program.
The Voluntary Disclosure Program is available year-round. The Amnesty program is only available between May 15th and June 30, 2011.
For more info on Michigan's Voluntary Disclosure Program, go to MI VDA.
Brian Strahle is the owner of LEVERAGE SALT, LLC where he provides state and local tax technical services to accounting firms, law firms and tax research organizations across the United States. He also writes a weekly column in Tax Analysts State Tax Notes entitled, "The SALT Effect." For more info, visit his website: www.leveragestateandlocaltax.com
You can reach Brian at firstname.lastname@example.org.
Because state and local taxes are deceptively simple and endlessly complicated.