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 [1] 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 22, 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.
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 22, 2020, to establish their installment balance. Taxpayers can then make six monthly equal payments on that balance in June through November, and designate February as the tax period.
- Quarterly filers should submit their outstanding first quarter return by June 22, 2020, to establish their installment balance. Taxpayers can then make three equal payments on that balance in June, September and November, and designate first quarter as the tax period.
- Each installment payment must be submitted separately from any tax payment otherwise due in the tax period, either on a voucher or through the MTO website.
Taxpayers must follow the payment instructions as outlined in the state Treasury Department’s notice [2]. Businesses do not need to contact or submit any documentation to the state Treasury Department to participate in the installment plan.
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.
For assistance with business Sales, Use and Withholding (SUW) tax payments, please contact your ShindelRock tax professional.