Michigan Treasury Issues Income Tax Penalty, Interest Waiver Notice for Individuals Receiving 2020 Unemployment Benefits

The Michigan Department of Treasury Feb. 9 issued a notice establishing an automatic penalty and interest waiver for estimated taxes owed by individual income taxpayers who received unemployment benefits during tax year 2020. The Treasury includes: 1) every person whose annual tax is expected to exceed $500 should make four equal installments of estimated tax; 2) state and federal legislation extended the weekly unemployment benefit for many individuals; 3) 2020 unemployment benefits, a source of income not subject to mandatory tax withholding for individual income and corporate income tax purposes, presents an estimated tax payment obligation and penalties and interest ...