05/19/2026
Important Notice for Michigan Taxpayers:
We want to make our clients and community aware that the Michigan Department of Treasury has issued nearly 30,000 “Letters of Adjustment” this year following updates to their reporting system.
Receiving one of these letters does not necessarily mean your return was filed incorrectly.
Based on our experience, these notices are most commonly triggered when:
-Estimated tax payments were made (the state system may not be properly reflecting them)
-Beneficiary distributions were received
-Clarification on Retirement Income
Over the past four years, Michigan has been restoring the pre-2012 retirement tax exemption, primarily based on age. One area that has created confusion is beneficiary retirement income:
-Spousal beneficiary accounts may still qualify for exemption, provided the spouse has not remarried
-Non-spousal beneficiaries, or remarried spouses, are generally subject to Michigan income tax on these distributions
If You Receive a Notice:
-If we filed your return and you receive a Letter of Adjustment, please bring a copy to our office. We will review the notice and respond with the correct information originally reported, along with any supporting documentation.
Please do not ignore these letters, but also understand that they are often the result of reporting discrepancies rather than filing errors.
Our team is here to help ensure everything is addressed properly.
