Bonus Interest of 3% Added to Statutory Interest on Refunds Not Paid Within 60 Days
Public Act 133 of 2013 provides that beginning January 1, 2014; the Michigan Department of Treasury will be required to pay additional interest on a personal income tax refund owed to an individual taxpayer if the refund had not been paid within one of the following dates for the applicable tax year:
- May 1, for returns received by March 1 of the applicable tax year;
- 60 days from the date the department received the return, for returns received after March 1 of the applicable tax year.
The additional interest must be paid at a rate of 3% per annum, calculated from the time the tax was due and until the refund was paid, if all of the following conditions are met:
- the refund was due on an original return that was timely filed under the applicable income tax provision;
- the department did not adjust the refund;
- the return was complete for processing purposes with no calculation errors and contained all required information prescribed by the department;
- the taxpayer had complied with the department's request, if any, for additional documentation or information within 30 days of the request;
- the refund was not subject to a suspension of the statute of limitations under §205.27a(3) or (4), M.C.L., except for an audit by the department;
- no portion of the refund was subject to interception under §205.30a, M.C.L., for other liability of the taxpayer; and
- the amount to be refunded was more than $1.