Michigan State Income Tax Protest

MICHIGAN STATE INCOME TAX PROTEST AND REQUEST FOR INFORMAL CONFERENCE

TABLE OF CONTENTS

1. Cover Letter to Hearings Division
2. Form 5713 Cover Information
3. Statement of Protest
4. Identification of Notice and Tax Years
5. Statement of Facts
6. Legal Argument and Authorities
7. Specific Items in Dispute
8. Payment of Uncontested Portion
9. Request for Informal Conference
10. Reservation of Rights
11. Power of Attorney and Representative Information
12. Verification and Signature
13. Certificate of Service / Mailing
14. Michigan Practice Notes — Tax Tribunal vs. Court of Claims
15. Sources and References

1. COVER LETTER TO HEARINGS DIVISION

[DATE — must be within 60 days of Notice of Intent to Assess]

Michigan Department of Treasury

Hearings Division

P.O. Box 30038

Lansing, MI 48909

Via U.S. Mail (Certified, Return Receipt Requested) and Facsimile to (517) 636-4115

Re: REQUEST FOR INFORMAL CONFERENCE PURSUANT TO MCL § 205.21

Taxpayer: [TAXPAYER FULL LEGAL NAME]

Account / SSN / FEIN: [NUMBER — last four digits if redacted]

Notice Number(s): [NOTICE NUMBER FROM INTENT TO ASSESS]

Tax Type: Michigan Individual Income Tax

Tax Year(s): [YEAR(S) AT ISSUE]

Dear Hearings Officer:

Pursuant to MCL § 205.21(2)(a), and within sixty (60) days of receipt of the Department's Notice of Intent to Assess dated [DATE OF NOTICE], Taxpayer hereby submits this written protest, requests an informal conference on the question of liability, and tenders the uncontested portion of the proposed liability as required by MCL § 205.21(2)(b).

Enclosed are: (i) completed Form 5713 (Request for Hearing/Informal Conference); (ii) a copy of the Notice of Intent to Assess; (iii) this written Statement of Protest; (iv) supporting documentation listed in Section 7; and (v) check or proof of payment for the uncontested portion of the assessment.

Sincerely,

[________________________________]

[TAXPAYER OR AUTHORIZED REPRESENTATIVE NAME]

2. FORM 5713 COVER INFORMATION

3. STATEMENT OF PROTEST

3.1. Taxpayer protests in whole or in part the proposed deficiency assessment described in the Notice of Intent to Assess dated [DATE] and respectfully requests an informal conference under MCL § 205.21 to resolve the contested issues.

3.2. This protest is timely filed within sixty (60) days of receipt of the Notice as required by MCL § 205.21(2)(a). Receipt is established by [U.S.P.S. tracking / Treasury mailing date].

3.3. Taxpayer does not waive any rights under the Michigan Taxpayer Bill of Rights (MCL § 205.27a), the Income Tax Act of 1967 (MCL § 206.1 et seq.), the Michigan Constitution, or the United States Constitution.

4. IDENTIFICATION OF NOTICE AND TAX YEARS

5. STATEMENT OF FACTS

5.1. Taxpayer is [an individual resident of Michigan / a part-year resident / a nonresident] and timely filed Form MI-1040 for the tax year(s) at issue on [FILING DATE].

5.2. The Department's Notice asserts a deficiency arising from [summarize the adjustments — e.g., disallowance of itemized deductions, recharacterization of income, denial of credits, residency determination, audit adjustments transmitted from federal Form 4549].

5.3. The relevant facts are:

• [Factual Statement 1 — e.g., Taxpayer was a resident of Florida from January 1 to August 15, 20XX, and changed domicile to Michigan only on August 16, 20XX];
• [Factual Statement 2 — e.g., the contested deduction was supported by contemporaneous receipts attached as Exhibit A];
• [Factual Statement 3 — e.g., the IRS final adjustment relied upon by the Department was reversed by an IRS Notice of Reduced Adjustment dated MM/DD/YYYY].

5.4. Taxpayer has maintained all books, records, and supporting documentation as required by MCL § 205.27a and Michigan Administrative Code R 205.4103.

6. LEGAL ARGUMENT AND AUTHORITIES

6.1. Burden of proof. While the Department's assessment carries a presumption of correctness, Taxpayer rebuts that presumption with the documentation enclosed and identified herein. Vomvolakis v. Department of Treasury, 145 Mich. App. 238 (1985).

6.2. Issue 1 — [SHORT ISSUE TITLE]. [Legal argument citing Income Tax Act provision, e.g., MCL § 206.18 (residency); MCL § 206.30 (taxable income); MCL § 206.255 (credits); applicable Treasury Revenue Administrative Bulletins; controlling case law].

6.3. Issue 2 — [SHORT ISSUE TITLE]. [Legal argument].

6.4. Issue 3 — Penalty abatement. Pursuant to MCL § 205.23 and the Department's reasonable-cause standard, any penalty should be abated because Taxpayer acted with ordinary business care and prudence and any error was not the result of negligence or intentional disregard.

6.5. Statute of limitations defense (if applicable). Under MCL § 205.27a(2), the Department may not assess a deficiency more than four (4) years after the later of the date the return was due or filed, absent a federal change, fraud, or filing of a false or fraudulent return. [Apply to facts.]

7. SPECIFIC ITEMS IN DISPUTE

Exhibits enclosed:

• ☐ Exhibit A — [DESCRIPTION, e.g., copies of Form W-2, 1099]
• ☐ Exhibit B — [DESCRIPTION, e.g., domicile evidence: lease, utility bills, voter registration]
• ☐ Exhibit C — [DESCRIPTION, e.g., charitable contribution receipts]
• ☐ Exhibit D — [DESCRIPTION, e.g., IRS RAR or Form 4549]
• ☐ Exhibit E — [DESCRIPTION, e.g., prior-year MI-1040 returns]
• ☐ Exhibit F — [DESCRIPTION]

8. PAYMENT OF UNCONTESTED PORTION

8.1. As required by MCL § 205.21(2)(b) and § 205.22(2), Taxpayer tenders payment of the uncontested portion of the proposed liability in the amount of $[AMOUNT] by [check / electronic funds transfer / Michigan Treasury Online (MTO)].

8.2. [Check number / EFT confirmation: ____________________]

8.3. This payment is made under protest as to any portion later determined to be in excess of the legally correct liability and without prejudice to any refund right under MCL § 205.30.

9. REQUEST FOR INFORMAL CONFERENCE

9.1. Taxpayer requests an informal conference under MCL § 205.21(2)(c) at a mutually agreeable time and place, and requests not less than twenty (20) days' written notice of the conference per MCL § 205.21(2)(d).

9.2. Taxpayer [will / will not] be represented at the conference. If represented, the representative will appear pursuant to a properly executed Form 151 (Authorized Representative Declaration / Power of Attorney).

9.3. Taxpayer requests the following:

• ☐ In-person conference at the Lansing Hearings Division;
• ☐ Telephonic conference;
• ☐ Video conference (if offered by Treasury);
• ☐ Decision on the written record without oral conference.

9.4. Taxpayer requests that the Hearings Officer issue a written Decision and Order of Determination addressing each contested item.

10. RESERVATION OF RIGHTS

10.1. Taxpayer reserves the right to supplement this protest with additional facts, exhibits, and legal argument up to and including the date of the informal conference.

10.2. Taxpayer reserves all rights to appeal any final assessment to the Michigan Tax Tribunal under MCL § 205.22(1) (within thirty-five (35) days) or, alternatively, to the Michigan Court of Claims under MCL § 205.22(1) (within ninety (90) days).

10.3. Nothing herein constitutes an admission of liability for any contested amount, penalty, or interest.

11. POWER OF ATTORNEY AND REPRESENTATIVE INFORMATION

If represented, complete and attach Michigan Form 151 (Authorized Representative Declaration) or Form 3683 (Power of Attorney Authorization).

12. VERIFICATION AND SIGNATURE

I, [TAXPAYER NAME], declare under penalty of perjury under the laws of the State of Michigan that I have examined this protest, including any accompanying schedules, exhibits, and statements, and to the best of my knowledge and belief the information stated is true, correct, and complete.

Date: [__/__/____]

[________________________________]

[TAXPAYER SIGNATURE]

[PRINTED NAME]

[TITLE — if signing for entity]

13. CERTIFICATE OF SERVICE / MAILING

I hereby certify that on this [____] day of [_______________], 20[____], I served the foregoing Request for Informal Conference, Form 5713, and supporting exhibits upon the Michigan Department of Treasury by:

• ☐ U.S. Certified Mail, Return Receipt Requested, Tracking No. [NUMBER], addressed to: Michigan Department of Treasury, Hearings Division, P.O. Box 30038, Lansing, MI 48909;
• ☐ Facsimile transmission to (517) 636-4115, confirmation No. [NUMBER].

[________________________________]

[NAME OF SERVER]

14. MICHIGAN PRACTICE NOTES — TAX TRIBUNAL vs. COURT OF CLAIMS

Michigan provides two mutually exclusive appellate routes for a Final Assessment under MCL § 205.22(1). Counsel should evaluate the choice carefully BEFORE the 35-day Tax Tribunal deadline expires.

Critical practice points:

• Choose ONE forum. Filing in one waives the other for the same assessment (Wickenheiser v. Department of Treasury, Mich. Tax Trib. (precluding parallel litigation)).
• Day-count starts at issuance, not receipt, of the Final Assessment per MCL § 205.22(1). Calendar conservatively.
• Pay-to-play. Failure to pay the uncontested portion is jurisdictional and divests the Tribunal/Court of authority. Fradco, Inc. v. Department of Treasury, 495 Mich. 104 (2014).
• Informal conference is optional but recommended. Many disputes resolve at this stage without need for tribunal/court appeal. The 35/90-day appeal clocks restart from the Final Assessment that follows the Decision and Order of Determination.
• Records retention. Keep records for at least the four-year MCL § 205.27a(2) statute of limitations, extended to six years if a return omits more than 25% of taxable income, and indefinitely for unfiled or fraudulent returns.

15. SOURCES AND REFERENCES

• MCL § 205.21 (Notice of Intent to Assess; informal conference) — https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-205-21
• MCL § 205.22 (Appeal procedure) — https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-205-22
• MCL § 205.27a (Statute of limitations; records retention) — https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-205-27a
• MCL § 205.30 (Refunds) — https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-205-30
• Income Tax Act of 1967, MCL § 206.1 et seq. — https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-Act-281-of-1967
• Tax Tribunal Act, MCL § 205.701 et seq. — https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-act-186-of-1973
• Michigan Tax Tribunal — https://www.michigan.gov/taxtrib
• Michigan Court of Claims — https://www.courts.michigan.gov/courts/court-of-claims/
• Michigan Department of Treasury, Hearings Division — https://www.michigan.gov/taxes/coll-audit/hearings
• Form 5713 (Request for Hearing/Informal Conference) — https://www.michigan.gov/taxes (search "Form 5713")
• Information about Informal Conferences — https://www.michigan.gov/taxes/coll-audit/hearings/information-about-informal-conferences
• Taxpayer Rights and Responsibilities — https://www.michigan.gov/taxes/taxpayer-advocate
• Fradco, Inc. v. Department of Treasury, 495 Mich. 104 (2014)
• Vomvolakis v. Department of Treasury, 145 Mich. App. 238 (1985)

Disclaimer: This template is provided for informational purposes only and does not constitute legal advice. An attorney or CPA licensed in Michigan must review and customize this document before submission. Statutory deadlines under MCL §§ 205.21 and 205.22 are jurisdictional. Verify all citations, deadlines, and Treasury procedures before filing.