Michigan Treasury Notice Errors: What Taxpayers Need to Know
If you have recently received a notice from the Michigan Department of Treasury that does not seem to add up, you are not alone, and in many cases, there is no need to take immediate action.
CSH is aware of a widespread issue impacting Michigan taxpayers, and the Treasury has confirmed the root cause is a system error that triggered incorrect notices across a large number of accounts.
What Caused the Issue?
According to the Michigan Department of Treasury, a processing error led to estimated tax payments and credit carryforwards not being properly applied when generating recent notices. While the notices may reflect discrepancies, Treasury has clarified that taxpayer payments are still accurately recorded within its eServices system.
In short, the notices are incorrect, not your payments.
The issue appears to impact notices dated between April 2 and April 28, 2026. Treasury has temporarily halted additional notices while corrections are underway, and updated notices are expected to be issued once the system is fully reconciled.
What Should You Do Now?
For most taxpayers, the best course of action is to wait.
The State has indicated that corrected notices will be distributed before any appeal deadlines lapse. However, if you receive a notice that you believe is inaccurate and a corrected version does not arrive in time, it is important to file an appeal to preserve your rights.
Every situation is unique, so if you are unsure how this applies to you, it is worth getting a second opinion.
Received an Unexpected Refund Check? Proceed with Caution.
Some taxpayers may also receive refund checks that were not anticipated. These may be tied to prior underpayment penalties or misapplied credits.
Treasury is advising taxpayers not to cash these checks if they appear to be issued in error, as doing so could complicate the correction process.
If you believe a refund was sent incorrectly, return the check uncashed to:
Michigan Department of Treasury P.O. Box 30788 Lansing, MI 48909
Include a brief explanation and retain documentation for your records.
How CSH Can Help
Situations like this highlight how quickly tax matters can become confusing, especially when they stem from issues outside your control. Whether you are a business owner, not-for-profit leader, or individual taxpayer, it is critical to respond appropriately without creating additional complications.
CSH’s tax professionals are actively monitoring this situation and working with clients to assess notices, validate account activity, and determine the right next steps.
If you have received a Michigan Treasury notice or an unexpected refund and are not sure how to proceed, we are here to help you navigate it with confidence.
Connect with a CSH advisor today to review your situation and ensure your interests are protected.
Note: The Michigan Department of Treasury has updated the date range of affected notices. Initial guidance indicated notices dated March 30 through April 17, 2026, were impacted. This has since been revised to include notices dated April 2 through April 28, 2026. All other guidance remains unchanged.
