Detroit tax processing improvements coming

Beginning in January 2017, the Michigan Department of Treasury (Treasury) will begin administering the City of Detroit's Corporate, Partnership and Fiduciary Income Tax return processes and will collect and enforce income tax withholding.

The City of Detroit entered into an agreement with Treasury to process City Business and Fiduciary Income Tax returns beginning with the 2016 tax year. This change will affect any taxpayer subject to the city's corporate, partnership and fiduciary filing requirements, as well as any business required to withhold City of Detroit income taxes.

Detroit's business taxpayers will have the ability to submit their 2016 city corporate income tax returns electronically and have access to Treasury's online services. As a result, the City of Detroit will benefit from improved accuracy of electronically filed returns as well as expanded compliance and enforcement efforts. Partnership and fiduciary returns will now be paper filed with Treasury.

In announcing the second phase of the coordinated program, Detroit Chief Financial Officer John Hill explained, "The first phase of this agreement with the Michigan Department of Treasury was very successful. For the first time, individual taxpayers were able to file their Detroit income taxes electronically. As the e-filing program expands to include corporate filers, we are continuing our efforts to make city government more accessible and user friendly to those we serve."

City of Detroit leaders and Treasury staff are working collaboratively to ensure a seamless transition and quality customer service for City of Detroit taxpayers.

"The Michigan Department of treasury is focusing on building a culture of taxpayer service. Our partnership with the City of Detroit is an example of this work in action. For the first time, Detroit taxpayers will have access to a consolidated system for filing their City and State taxes," stated Nick Khouri, treasurer of the State of Michigan.

Forms, instructions, and additional information will be available later this month on the Michigan Department of Treasury's website at www.michigan.gov/citytax.

Published: Fri, Nov 18, 2016