Many taxpayers are currently receiving unexpected correspondence from the Michigan Department of Treasury related to their 2025 tax filings. These notices may include penalty and interest assessments, missing estimated tax payments, unapplied credits, or even unexpected refund checks that do not appear to make sense based on the taxpayer’s filed return and payment history.
If you receive one of these notices, know that you are not alone—and in many cases, the Michigan Department of Treasury has already acknowledged these issues and is actively working to correct them.
According to recent Treasury updates, certain notices issued between April 7 and April 28, 2026 contained errors related to estimated payments and credit carryforwards due to issues associated with Treasury’s new processing system. The Treasury has confirmed that taxpayer prepayments are properly reflected within its internal eServices system and that corrected notices are being issued automatically.
What Taxpayers Should Know
1. Many Incorrect Notices Require No Immediate Action
The Treasury has indicated that taxpayers generally do not need to respond to notices that are clearly incorrect if the issue involves:
- Estimated tax payments not appearing as applied
- Credit carryforwards missing
- Incorrect balances due resulting from payment application errors
In many situations, the Treasury is self-correcting these issues and mailing revised notices automatically.
For this reason, letter responses often are not necessary unless:
- The corrected notice still appears inaccurate, or
- The issue falls outside the currently identified Treasury processing errors.
2. Refund Checks Received in Error Should Not Be Cashed
Some taxpayers have also received unexpected refund checks, particularly related to Form 2210 underpayment penalties. The Treasury has acknowledged that certain refunds were issued erroneously.
If a refund check was received in error:
- Do not cash the check.
- Return the uncashed check to the Treasury with a written explanation.
- Retain copies for your records.
If the check has already been cashed, taxpayers should repay the amount either online through Michigan Treasury eServices or by remitting payment directly to the Treasury. The Treasury has stated that repayment will restore the correct account balance.
Taxpayers who cash erroneous refund checks and take no action may later receive:
- A “Reminder of Tax Due” notice, or
- An “Intent to Assess” notice with additional penalty and interest charges.
Treasury’s Ongoing Corrections
The Treasury reports that approximately 27,000 Notice of Adjustment letters were issued in error and that revised correction letters are currently being mailed. Some notices may contain past-due dates because account corrections were completed earlier while the Treasury validated the accuracy of the updates.
The Treasury has also paused additional mailings while system corrections are implemented.
Solution Tracker Available
Michigan Treasury has published a “Solution Tracker” webpage to provide updates regarding known 2025 return processing and correspondence issues.
Taxpayers and practitioners can monitor updates here.
Our Recommendation
If you receive Michigan Treasury correspondence that appears inconsistent with your filed return or payment records:
- Do not panic.
- Review the notice carefully.
- Compare it to your payment confirmations and filed return.
- Contact our office before responding or submitting payment if you are uncertain.
Given the volume of notices and the Treasury’s ongoing corrections, many issues are being resolved automatically without taxpayer intervention.
MRPR continues to monitor the Treasury guidance and developments closely and will keep clients informed as additional updates become available. Please contact us with any questions.
Authors:
Angela Mastroionni CPA Managing Principal
Kloe Houvener Staff Accountant