Installment Payment Option Available for Business Taxpayers Deferring Sales, Use and Withholding Tax Payments
May 28, 2020
Business taxpayers who have deferred paying their Sales, Use and Withholding (SUW) taxes due to the COVID-19 pandemic can now participate in an installment payment option to satisfy their outstanding tax balance, according to the Michigan Department of Treasury.
In a special notice issued on May 26, 2020, the state Treasury Department is now allowing business taxpayers scheduled to make SUW tax payments for the February, March, April and May tax periods on June 20, 2020 – including quarterly filers – to either pay their outstanding balance in its entirety or pay their outstanding balance in monthly payments over the next six months. Penalties and interest will be waived on those deferred payments.
“Michigan businesses are looking for ways to continue operating during and after this crisis and we know that many have taken advantage of tax payment extensions,” State Treasurer Rachael Eubanks said. “Providing an installment payment option enables businesses to spread out their obligations over the next six months without incurring additional cost. Taxpayers are encouraged to pay their entire balance if able to do so.”
To take advantage of the installment payment option, monthly filers should submit their outstanding returns for February, March, April and May tax periods by June 20, 2020, to establish their installment balance. Taxpayers can then make six monthly payments on that balance from June to November.
Quarterly filers should submit their outstanding first quarter return by June 20, 2020, to establish their installment balance. Taxpayers can then make three payments on that balance in June, September and November.
For the SUW tax deadline in July and deadlines through the remainder of the year, businesses must file their monthly or quarterly returns and submit their payments as normally scheduled.
To ensure accurate reporting of the payments, each installment payment must be submitted separately from any tax payment otherwise due in that tax period. Taxpayers must follow the payment instructions as outlined in the state Treasury Department’s notice.
Businesses do not need to contact or submit any documentation to the state Treasury Department to participate in the installment plan.