The Michigan Department of Treasury (Department) recently issued an internal policy directive (Directive)¹ explaining a taxpayer's right to an extension of time to file an appeal when the taxpayer's representative was or is not provided a copy of a letter or notice pursuant to Mich. Comp. Laws Ann. Section 205.8.

According to the Directive, if the Department failed to provide the taxpayer's representative with a copy of a letter regarding the specific dispute and the affected taxpayer filed a valid written request with the Department indicating that copies of all letters and notices related to a dispute be sent to the taxpayer's representative, that taxpayer may be entitled to an extension of time to appeal the related issue.

To determine if a taxpayer is entitled to an extension of time to appeal, the Directive states that one of the following types of documentary evidence must be on file with the Department or, if not on file, the taxpayer must demonstrate that it filed the documentary evidence with the Department:

1. A current Form 151 (Rev. 11-15, or a later version) — Authorized Representative Declaration (Power of Attorney) with Parts 1, 3, and 5 properly completed; or
2. A clear, written request in another format (such as a letter) that copies of all letters and notices regarding a specific dispute be sent to the taxpayer's named representative at an address specified in the written request.

The Directive also discusses the actions a taxpayer should take to obtain the extension of time to file an appeal, the actions the Department will take in response to the taxpayer's request, and when the extended appeal period will commence. It also states in a footnote that if the appeal rights were denied by the Michigan Court of Claims or the Tax Tribunal after addressing the merits of any notice issues, the taxpayer is not entitled to relief under the Directive.

Implications

If a taxpayer's representative did not receive all letters or notices regarding a dispute, and as a result, the taxpayer's appeal period has expired and/or the taxpayer was denied the right to appeal, the taxpayer may want to review the procedural aspects of the dispute to obtain an extension of time to appeal the matter in line with the guidance provided in the Directive.

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ENDNOTES

¹ Mich. Dept. of Treas., Internal Policy Directive No. 2016-2 (issued March 30, 3016) (last accessed May 13, 2016).