MI HB4461

Department of Treasury must credit or refund overpayments of taxes, erroneously assessed taxes, penalties, and interest at the rate calculated for tax deficiencies.

For refunds approved before January 1, 2017, interest accrues 45 days after claim is filed or 45 days after return due date, whichever is later; for refunds approved after December 31, 2016, interest accrues from the original return filing date (or overpayment date if later) until 7 days before refund issuance.

No interest is paid if overpayment is refunded within 45 days from original return filing date or overpayment date, whichever is later; refunds under $1.00 are not paid.

Beginning January 1, 2014, income tax refunds not paid by May 1 (for early returns) or within 60 days of receipt (for late returns) earn 3% annual interest if all specified conditions are met, including timely filing, no department adjustments, complete return, and taxpayer compliance with information requests.

Beginning January 1, 2015, Michigan business tax refunds not paid within 90 days of claim approval or statutory filing date earn 3% annual interest if specified conditions are met, with $10.00 minimum refund amount.