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Michigan sales tax notices

Got a letter from the Michigan Department of Treasury? Find it below to see what it means, why businesses usually receive it, and what to do next.

Sources checked

Tax authority

Michigan Department of Treasury (opens in a new tab)

Official notice guide (opens in a new tab)

Disagree with a notice?

After an Intent to Assess (Bill for Taxes Due), send a written request for an informal conference to Treasury's Hearings Division, for example on Form 5713. Include a statement of the disputed amount and your reasons, and pay the undisputed portion. Requests are accepted only by U.S. mail or fax. A Final Assessment or informal conference decision can be appealed to the Michigan Tax Tribunal or the Michigan Court of Claims.

Deadline: Informal conference: 60 days from the date on the Intent to Assess. Tax Tribunal: 60 days. Court of Claims: 90 days.

Source: Michigan Department of Treasury (opens in a new tab)

Assessment

A proposed or final determination of tax owed, sometimes estimated when returns were never filed.

AssessmentForm 168

Bill for Taxes Due (Intent to Assess)

Treasury has determined you owe additional tax, such as sales, use or withholding tax. The notice explains the debt, the taxable period and your right to an informal conference.

Why you got it

  • An audit left a balance due after the Preliminary Audit Determination
  • Treasury determined you owe additional tax, for example after an audit

What to do

  1. Check the tax, period and any penalty against your records
  2. If you disagree, send a written informal conference request (Form 5713) to the Hearings Division by mail or fax within 60 days, stating the disputed amount and your reasons and paying the undisputed portion
  3. If you agree with the tax, pay it or ask the Office of Collections about a payment arrangement
  4. To contest penalties, send a separate written penalty waiver request with your reasonable-cause facts; a conference request alone doesn't count

Before you pay penalties: check whether you can ask for them to be waived, and what the state needs paid first. How to ask

Response window: 60 days from the date on the notice to request an informal conference

Source: Intent to Assess (Bill for Taxes due) (opens in a new tab)

AssessmentForm 169

Final Bill for Taxes Due (Final Assessment)

The final assessment of tax, penalty and interest. Treasury issues it about 60 days after the Intent to Assess unless you pay in full, request an informal conference or file a valid Form 5244.

Why you got it

  • No payment or informal conference request was made after the Intent to Assess
  • An informal conference upheld the assessment

What to do

  1. If you disagree, appeal to the Michigan Tax Tribunal within 60 days or the Court of Claims within 90 days, and pay the undisputed amount
  2. Otherwise, pay the tax or ask the Office of Collections about a payment arrangement before collection action starts
  3. If you had reasonable cause for filing or paying late, send a written penalty waiver request to Treasury's Collection Services Bureau

Before you pay penalties: check whether you can ask for them to be waived, and what the state needs paid first. How to ask

Response window: 60 days to appeal to the Michigan Tax Tribunal, or 90 days to the Michigan Court of Claims

Source: Final Bill for Taxes Due - Final Assessment Form 169 (opens in a new tab)

Audit

A request for records or notice that the authority is examining your returns.

Audit

Determined Audit Adjustments letter / Preliminary Audit Determination

Audit findings come in two steps. First, a Determined Audit Adjustments (DAA) letter includes the audit schedules. Then a Preliminary Audit Determination (PAD) shows the tax, penalty and interest owed or any refund.

Why you got it

  • A Treasury audit of your sales, use or other tax records is ending

What to do

  1. Review the audit schedules; if you disagree with the DAA letter, contact the auditor by the date it gives
  2. To submit more documents after the PAD, file Form 5244, Request for Reconsideration of a Preliminary Audit Determination
  3. If you agree with the tax, pay it by the response date; penalties can be challenged with a separate written reasonable-cause waiver request

Response window: By the response date identified in the DAA letter or PAD

Source: Form 2315, Taxpayer Rights During an Audit (opens in a new tab)

Nexus inquiry

A questionnaire or letter asking about your activity in the jurisdiction to decide whether you must register.

Nexus inquiry

Letter of Inquiry (with Form 1353 Nexus Questionnaire)

Treasury's Discovery and Tax Enforcement Division sends this letter when it thinks your company may be selling to or serving Michigan customers. It asks you to complete Form 1353 so Treasury can decide whether you have nexus for sales/use tax or income taxes.

Why you got it

  • Treasury identified your company as possibly making sales or providing services to Michigan customers
  • Treasury wants to know whether your Michigan activity creates nexus, even if you already file

What to do

  1. Complete Form 1353 and return it by the due date (by email, mail or fax as listed on the Nexus page), even if you are already registered or filing
  2. Contact the auditor named on the letter before the due date if you need more time
  3. Gather records of your Michigan sales and activities, and consider getting professional advice before answering
  4. If you may have unreported liability, ask about Voluntary Disclosure (Form 4133 submitted with Form 1353)

Response window: By the due date on the letter

Source: Nexus (opens in a new tab)

Collections

Enforcement on unpaid balances, such as liens, levies, warrants, or referral to a collection agency.

Collections

Wage Levy / Financial Institution Levy

Collection actions Treasury can take on an unpaid assessed balance, after notice and due process. A levy takes wages or bank funds up to the past-due amount, and Treasury may also file liens on property.

Why you got it

  • An assessed balance was not paid in full and no payment arrangement is in place

What to do

  1. Pay the balance in full or enter an approved payment arrangement to stop collection
  2. Contact the Office of Collections about the debt; a $55 filing fee is added for each levy served
  3. If you had reasonable cause for paying late, a written penalty waiver request can still be sent to Treasury

Before you pay penalties: check whether you can ask for them to be waived, and what the state needs paid first. How to ask

Source: Form 2315, Taxpayer Rights During an Audit (opens in a new tab)

Ask for penalty relief

Penalties on a Michigan notice aren't always final. You can ask for them to be waived. Follow the steps below, including anything the state requires you to file or pay before it reviews the request.

Penalty waiver (reasonable cause)

  1. Pay the tax, or ask the Office of Collections about a payment arrangement, to limit further penalty and interest
  2. Send a written request stating all facts that show reasonable cause and no willful neglect, with supporting documents, to Michigan Department of Treasury, Collection Services Bureau, P.O. Box 30199, Lansing, MI 48909
  3. Make it a separate request; filing an informal conference request alone does not count as a waiver request

What qualifies: Reasonable cause and not willful neglect: the taxpayer exercised ordinary business care and prudence but still could not file or pay on time. Examples include death or serious illness, fire, natural disaster, criminal acts against you, and erroneous written advice from Treasury.

Interest: Treasury's Taxpayer-Initiated Disclosure page says interest is statutory and cannot be waived. RAB 2025-15 does not address interest relief.

Source: Revenue Administrative Bulletin 2025-15 (opens in a new tab)

Before you respond

  • Check the date on the notice. Response windows usually run from that date, not the day you open it.
  • Match the account number and filing period to your own records before paying or disputing.
  • If returns are missing, filing the actual returns usually replaces an estimated bill. Confirm how on the notice or with the authority.
  • Ask about penalty relief before paying penalties, and check what must be paid with the request. See how
  • Keep a copy of the notice and everything you send back.

This page is general information, not tax or legal advice. Notice names and procedures change, so always follow the instructions on your notice and the official sources linked above.

Need the rates, nexus thresholds and filing rules? Read the Michigan sales tax guide.

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