Michigan: Sales Tax Handbook
How to appeal a sales tax audit or penalty in Michigan
In Michigan, the Department of Treasury will frequently audit business sales tax returns and may issue penalties or punishments for tardy filing, incorrect reporting, willful omissions, or other violations. Penalties can range from fines to revocation of your sales tax permit depending on the infraction.
If you disagree with a penalty or ruling made by the Michigan Department of Treasury, you have several options you can pursue in appealing their decision. This page contains basic guidelines for appealing to the Department of Treasury, to an administrative appeal body, and through the courts.
Sales Tax Statute of Limitations in Michigan
In sales tax law, the "statute of limitations" is the maximum amount of time state authorities have to investigate and begin potential audit or prosecution related to a a filed Michigan sales tax return in the event of underpayment, incorrect reportings, etc. The Department of Treasury cannot begin an audit or issue a penalty after this timeframe.
The statute of limitations in Michigan is four years from the later of the return due date or the return filing date. In the case of a discovered fraud attempt, the statute of limitations becomes two years from the date when the fraud was found.
Appealing to the Department of Treasury in Michigan
If you do not agree with a penalty or decision made by the Michigan Department of Treasury, you have the right to file an appeal and ask for reconsideration. Informal conference may be requested with the Department of Treasury within sixty days after receipt of notice of intent to assessTop
Administrative Sales Tax Appeals in Michigan
In the case of administrative appeal, a petition must be filed with the Tax Tribunal within thirty-five days after the decision has been madeTop
Judicial Sales Tax Appeals in Michigan
If all other appeal avenues fail, businesses can make a final appeal in the state court system. When working with judicial appeals, the suit must be filed with the Court of Claims within ninety days after the assessment, decision, or order. The decisions of the Court of Claims or Tax Tribunal can be appealed to the Court of Appeals if necissary.
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