If you recently received a strange notice from the Michigan Department of Treasury, take a breath. You are not the only one.
Treasury has acknowledged an issue with certain taxpayer letters related to 2025 estimated payments and credit carryforwards. In plain English, some notices made it look like estimated tax payments were not applied to annual returns, even though the payments had been made.
Not exactly the kind of mail anyone wants to open.
The good news is that Treasury has confirmed taxpayer prepayments are properly accounted for and reflected correctly in Michigan Treasury eServices. Treasury has also stated that no action is needed right now for affected notices, and corrected letters will be issued once the issue is fully resolved.
Treasury has paused sending additional affected notices while working on the fix.
What notices are affected?
According to the Michigan Department of Treasury, the issue applies to certain Notice of Adjustment letters dated between April 7 and April 28, 2026. Treasury currently believes about 27,000 letters were sent to affected taxpayers.
You can read Treasury’s official update here: https://content.govdelivery.com/accounts/MITREAS/bulletins/414e169
You can also track Treasury’s Tax Year 2025 Solutions Tracker here: https://www.michigan.gov/taxes/iit/tax-guidance/tax-year-info/ty2025/solutions-tracker
What about unexpected refund checks?
There is also a separate issue being reported by taxpayers and tax professionals alike. Some taxpayers have received refund checks, without explanation, equal to the Section 2210 underpayment penalties reported on their returns.
For now, we are advising clients not to cash these checks until they confirm the refund is correct. Cashing a check that was issued in error may complicate fixing the issue later.
If you believe you received a refund check in error, mail the uncashed check to:
Michigan Department of Treasury
P.O. Box 30788
Lansing, MI 48909
Include a written statement explaining why you are returning the check. Keep a copy of the check and your letter for your records.
Not sure if your refund was issued in error?
You have a few options:
· Set up a MiLogin account and use Michigan Treasury eServices to submit an inquiry.
· Contact the Individual Income Tax section of the Michigan Department of Treasury at 517-636-4486.
· Contact our office before taking action.
Michigan Treasury eServices can be used to view tax records, access Treasury-issued letters, respond to letters, make payments, and communicate directly with Treasury.
What if you already cashed the check?
If you cashed an erroneous refund check, Treasury has indicated you should receive a notice in the form of a reminder of tax due or an Intent to Assess.
Those notices should include a Letter ID in the upper right corner, which can be used to respond through Michigan Treasury eServices. If the notice is an Intent to Assess, it should include a voucher.
The amount due may include the refund check that was cashed, plus penalty and interest. Taxpayers who want to request a penalty and interest waiver must do so in writing.
While online payments may be available, Treasury has encouraged taxpayers requesting a penalty and interest waiver to pay by mail and include the voucher, if applicable, along with the written waiver request. That way, the payment and waiver request arrive together.
Bottom line
This appears to be a State of Michigan processing and correspondence issue. It is frustrating, but it is also something Treasury has acknowledged and is working to correct.
If you received one of these notices or an unexpected refund check, do not panic and do not assume you did anything wrong. Keep the notice, keep your records, and reach out before responding or cashing anything that looks off.
If you are a Senter CPA client and have received one of these notices or checks, please send us a copy so we can help you determine the next step.
