Notice: Extensions for Income Tax Returns and Payments due to Federal Disaster Declaration in Certain Michigan Counties

Issued: March 5, 2024

This notice provides taxpayers with information on the extensions of time to file returns and remit tax and the waivers from penalty and interest that the Department will grant in conformity with IRS Notice 2024-42. To obtain the State and City of Detroit relief outlined in this Notice, taxpayers must request the relief desired and demonstrate that they were impacted by the federally declared disaster. Extensions and the associated relief are not automatic.

IRS Notice 2024-42

On February 15, 2024, the IRS issued Notice 2024-42 providing extensions to June 17, 2024, to file various federal individual and business tax returns and to make payment for those taxpayers in parts of Michigan affected by severe storms, tornadoes and flooding that began on August 24, 2023. Those areas designated by the Federal Emergency Management Agency (FEMA) include Eaton, Ingham, Ionia, Kent, Livingston, Macomb, Monroe, Oakland and Wayne counties. Individuals that reside in or have a business in these areas qualify for the IRS relief.

The extension applies to tax filing and payment deadlines that occurred during the period from August 24, 2023, through June 17, 2024. At the federal level, this applies to:

• Individual income tax returns and payments normally due on April 15, 2024.
• 2023 contributions to IRAs and health savings accounts for eligible taxpayers.
• Quarterly estimated income tax payments normally due on September 15, 2023, January 16, 2024, and April 15, 2024.
• Quarterly payroll and excise tax returns normally due on October 31, 2023, January 31, 2024, and April 30, 2024.
• Calendar-year partnership and S corporations that had a valid tax-year 2022 extension that ran out on October 16, 2023, or have a 2023 return normally due on April 15, 2024.
• Calendar-year corporations and fiduciaries that had a valid tax-year 2022 extension that ran out on October 16, 2023, or have a 2023 return and payment normally due on April 15, 2024.
• Calendar-year tax-exempt organizations that had a valid tax-year 2022 extension that ran out on November 15, 2023, or have a 2023 return normally due on May 15, 2024.

Michigan conformity with IRS Notice 2024-42

• Individual, composite, and fiduciary income tax returns and payments normally due April 15, 2024.
• Quarterly estimated income tax payments for individual filers normally due on October 15, 2023, January 16, 2024, and April 15, 2024.
• Quarterly estimated income tax payments for fiduciary and composite filers normally due September 15, 2023, January 16, 2024, and April 15, 2024.
• Michigan Business Tax and Corporate Income Tax annual returns and payments that are due April 30, 2024, for calendar year filers or fiscal filers whose annual return and payment of final liability is due within the period August 24, 2023, through June 17, 2024.
• Quarterly estimated income tax payments for Corporate Income Tax and Michigan Business Tax filers normally due October 15, 2023, January 16, 2024, and April 15, 2024 for calendar year filers and for fiscal filers, any estimated income tax payments falling due within the period August 24, 2023 through June 17, 2024.
• Individual and composite tax filers that had a valid tax-year 2022 extension that ran out on September 30, 2023, or a fiduciary filer that had a valid tax-year 2022 extension that ran out on September 30, 2023.
• Calendar year Michigan Business Tax and Corporate Income Tax taxpayers that had a valid 2022 tax-year extension that ran out December 31, 2023.
• Michigan Business Tax and Corporate Income Tax fiscal filers that had a valid extension that ran out within the period August 24, 2023, through June 17, 2024.
• Calendar year flow-through entity tax annual returns and payments normally due March 31, 2024, or fiscal filers whose annual return and payment of final liability is due within the period August 24, 2023, through June 17, 2024, for penalty and interest waivers only. This extension does not apply for purposes of electing into the flow-through entity tax (the 15^th day of the third month of a tax year); nor does the extension apply for purposes of funding the flow-through entity’s owners’ credit without deferral (the 15^th day of the third month after the tax year).
• Flow-through entity tax filers that had a valid extension that ran out September 30, 2023, for calendar year filers.
• Flow-through entity tax fiscal filers that had a valid extension that ran out within the period August 24, 2023, through June 17, 2024.

City of Detroit Income Tax

• Individual, partnership, and fiduciary income tax returns and payments normally due April 15, 2024.
• Quarterly estimated income tax payments for individual filers normally due on September 15, 2023, January 16, 2024, and April 15, 2024.
• Individual, partnership, and fiduciary income tax filers that had a valid tax-year 2022 extension that ran out on October 17, 2023.
• Corporate income tax returns normally due April 30, 2024.
• Quarterly estimated income tax payments for corporate filers normally due October 15, 2023, January 15, 2024, and April 15, 2024 for calendar year filers and for fiscal filers, any estimated income tax payments falling due within the period August 24, 2023 through June 17, 2024 or any corporate income tax filers who had a valid extension that ran out within that period.

City income taxpayers other than Detroit taxpayers should contact their respective tax administrators for information regarding that city’s conformity with IRS Notice 2024-42.

Extension of Date to Request Filing Extension and Make Annual Payment

The due date for any requests for and payment of tax related to an extension of time to file an annual return has also been extended. A taxpayer requesting an extension of time to file an annual return must therefore make a request and pay any tax with the extension by June 17, 2024. The due date of the extended annual return, however, is not modified by this notice. Accordingly, any taxpayer requesting an extension of time to file an annual return must submit that request and pay the appropriate amount of tax by June 17, 2024, but the extended annual return due date remains unchanged.

Penalty and Interest

The extensions provided in this Notice are effectuated by waiving penalties and interest through the extension period; however, the extension for the City of Detroit is pursuant to MCL 141.640. Penalty and interest for late filing of any returns and payments affected by this notice will not begin to accrue until June 18, 2024. The suspension of penalty and interest is limited to the extensions authorized under this notice; penalty and interest will continue to accrue as appropriate for taxes otherwise owed by any taxpayer.

Affected taxpayers unable to meet filing or payment deadlines due to this disaster must contact Treasury either by phone or by mail to request an extension. Individuals should call 517-636-4486. Businesses should call 517-636-6925. Correspondence may be sent to:

            Michigan Department of Treasury

            Attn:  Disaster Relief

            Lansing, MI 48922

When contacting Treasury to request relief, taxpayers must provide:

• Name and account number of the affected taxpayer.
• A brief description of how the taxpayer was impacted by the federally declared disaster.
• Taxpayer address within the disaster area or address of the tax preparer located in the disaster area.

A CPA or other representative can request extension relief on behalf of their client with a properly completed Form 151, Authorized Representative Declaration (Power of Attorney) or other form of POA. See Mich Admin Code, R 205.1006b(3). Otherwise, the taxpayer must make the request.

Due to system limitations, Treasury is unable to accept bulk requests by tax preparers on behalf of multiple clients in one letter. Tax preparers must submit a request for each client separately and submit Form 151 or an appropriate POA if one covering this request is not on file already. Requests may be submitted electronically through business taxes e-services at:

www.michigan.gov/askcit

www.michigan.gov/askfte

www.michigan.gov/iit

Some taxpayers may receive a preliminary assessment notice before a tax relief request is formally received by Treasury. Taxpayers within the disaster area who receive these notices should contact Treasury by phone at the numbers listed in this notice to resolve.