Yesterday, the Michigan Department of Treasury announced business taxpayers who have deferred paying their Sales, Use and Withholding (SUW) taxes due to the COVID-19 pandemic can now participate in an installment payment option to satisfy their outstanding tax balance. Taxpayers scheduled to make SUW tax payments for the February, March, April and May tax periods on June 20, 2020 – including quarterly filers – can either pay their outstanding balance in its entirety or pay their outstanding balance in monthly payments over the next six months. Penalties and interest will be waived on those deferred payments.
In April, the Michigan Chamber sent a letter to Treasurer Eubanks asking for a long-term fix on SUW taxes. Good news is the Treasury responded favorably to our request. We had specifically asked that taxpayers be allowed to pay several months’ worth of SUW taxes over a period of time. We’ve continued asking the Michigan Department of Treasury for this treatment and had legislation introduced to take March through August’s SUW taxes and make them due December 31st. Looks like these bills will not be necessary as the Department took administrative steps to accomplish their intent administratively.
The months listed in the notice for which the installment plans will be allowable should signal that the last monthly extension of SUW payments was done a few weeks ago for May’s payment.
The official notice: https://www.michigan.gov/taxes/0,4676,7-238-43551_84521-530130–,00.html
For more information on this development please feel free to contact Dan Papineau at dpapineau@michamber.com.