State tax debt in Michigan is collected by Michigan Department of Treasury, not the IRS. Ask through Collections eService or Form 990. A lien may be placed during the plan.
Key facts for Michigan
- State income tax
- Flat 4.25% for 2026. Source
- Payment plan
- Ask through Collections eService or Form 990. A lien may be placed during the plan. Source
- Offer program
- Yes. Send $100 or 20% of the offer, whichever is more, with the form. Source
Two debts, two sets of rules
- The IRS collects federal taxes, with its own letters and plans.
- Michigan Department of Treasury collects Michigan taxes, with its own rules.
- A plan with the IRS does not stop the state from collecting, and the other way around.
Common questions in Michigan
Who collects state taxes in Michigan?
The Michigan Department of Treasury. It is separate from the IRS. A plan with one does not stop the other from collecting.
Can I get a payment plan for Michigan taxes?
Ask through Collections eService or Form 990. A lien may be placed during the plan.
Does Michigan take offers in compromise?
Yes. Send $100 or 20% of the offer, whichever is more, with the form.
Can TaxTruce help with Michigan tax debt?
Yes. TaxTruce is a free service that connects you with tax resolution firms that work in Michigan. Answer a few questions, confirm your phone with a text code, and a firm reviews your situation and calls you back. We are not the IRS or a state agency.
Results depend on your situation. Not every case qualifies.
Sources
Facts on this page come from Michigan Department of Treasury and are linked. Rules change. Check with Michigan Department of Treasury or a licensed tax pro before you act. We are not affiliated with Michigan Department of Treasury.