News & Events Digest: October 2023

Following non-partisan confirmation from her peers at the National Association of State Treasurers? (NAST) Annual Conference,?State Treasurer Rachael Eubanks?has been elected to serve as the organization?s secretary-treasurer for 2024.

"NAST is a very important resource for state treasurers in terms of advocacy, learning and strengthening treasuries across the country,? said State Treasurer Eubanks. ?It?s an honor to be selected from amongst my peers across the country to serve in a leadership position at a critical time to meet these objectives."

NAST is an organization dedicated to helping the nation?s financial leaders pursue and administer sound financial policies and programs benefiting our nation. Membership is composed of all state treasurers or state finance officials with comparable responsibilities throughout the United States.

As secretary-treasurer, State Treasurer Eubanks will sit on the NAST executive committee and chair the finance committee. She will be tasked with presenting the organization?s next fiscal year budget and be involved in other pressing financial policy matters related to federal and state governments.

To learn more about NAST, visit?www.nast.org.

Don?t Forget to File Individual Income Tax Returns

Individual income tax returns due under an extension should have been received by Treasury on or before Oct. 16, 2023. Regardless of the extension deadline, taxpayers are encouraged to file a return.

Returns can be sent through the U.S. Postal Service or e-Filed. For the convenience of taxpayers, the?extension deadline was the same as the Internal Revenue Service.

?If you haven?t filed your individual income tax return yet ? regardless of an extension -- please consider doing so today,? said Deputy State Treasurer Glenn White, who oversees Treasury?s Revenue Services programs. ?Some individuals who haven?t filed could be entitled to a refund due to tax credits or other forms of assistance. Please contact us if you have questions about filing a return.?

Taxpayers who have yet to file their individual income tax return should consider:

• Filing a return to claim an outstanding refund.?Taxpayers risk losing their state income tax refund if they don't file a return within four years from the due date of the original return. Go to?www.michigan.gov/mifastfile?to learn more about e-filing.
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• Filing a return to minimize interest and penalties.?File returns and pay now to limit?interest charges and late payment penalties. An extension of time to file is not an extension of time to pay. Penalty and interest on the tax due is applicable from the original due date of the return until payment is received.?
  
  
• Paying as much tax as possible.?If taxpayers owe outstanding taxes and can't pay in full, they should pay as much as they can when they file their tax returns. Payments can be made using?Michigan's e-Payments service. When mailing checks, carefully follow tax form instructions. Treasury will work with taxpayers who cannot pay the full amount of tax they owe.

Questions?

Michigan taxpayers who have questions about or need help with their individual income tax returns or refunds can digitally connect with the state Treasury Department through?its?Treasury eServices?platform. Questions can also be directed to the Individual Income Tax Information Line at 517-636-4486.

Garnishment Day activities for November 2023

The Michigan Department of Treasury will be practicing vehicle waiting for those filing writs of garnishment in early November.

Beginning at 7:30 a.m. on Wednesday, November 1, Treasury staff will be outside the Operations Building in Dimondale, Michigan, to register individuals filing writs of garnishment.? Filers will need to supply their name, phone number, garnishment type(s), number of garnishments, and garnishment fee payment amount.

Once registered, filers will be directed to wait in their vehicles. When doors open at 8 a.m., individuals waiting in their vehicles will be contacted by mobile phone to enter the building one-by-one to file their garnishments.

Individuals who arrive at the Operations Center prior to 7:30 a.m. will not be provided priority in the processing of their writ of garnishments. All customers who arrive to the Operations Center between 8 a.m. and 4:30 p.m. will be serviced.

Electronic media will not be reviewed on November 1. Filers interested in submitting writs of garnishment electronically should contact the Treasury for guidelines.?

Information and updates on how to submit your 2023 tax garnishments can be found on our?website.

Grants Available for Financially Distressed Cities, Villages, and Townships

Cities, villages and townships experiencing financial struggles can now apply for a grant to help fund special projects and free up tax dollars for important services.

Applications are now being accepted for the Financially Distressed Cities, Villages, and Townships (FDCVT) grant program. Municipalities interested in applying for an award must submit applications to the state Treasury Department by 11:59 p.m. on Friday, December 8, 2023.

All cities, villages and townships experiencing at least one condition of ?probable financial distress? as outlined in the Local Financial Stability and Choice Act are eligible to apply for up to $2 million. A total of $2.5 million in funding is available for Treasury to award through the FDCVT grant program for the 2024 fiscal year.

Grant funding may be used to pay for specific projects or services that move a community toward financial stability. Preference will be given to applications from municipalities that meet one or more of the following criteria:

• A financial emergency has been declared in the past 10 years.
• An approved deficit elimination plan for the General Fund is currently in place.
• Two or more conditions indicating ?probable financial distress? currently exist.
• The fund balance of the General Fund has been declining over the past five years and the fund balance is less than 3 percent of the General Fund revenues.

Due to requirements outlined under state law, school districts are not eligible for funds from this grant program.

For more information about the FDCVT grant program or to download an application, go to?www.michigan.gov/revenuesharing.

REMINDER:?City of Detroit Withholding Tax to Be Paid Monthly in 2024

City of Detroit employers who withhold wages in compliance with the City Income Tax of 1964 will see some new changes beginning in 2024.

Effective January 1, 2024, employers will be required to file and pay their City Withholding Tax monthly. State law requires that a withholding employer in any city where the Michigan Department of Treasury (Treasury) administers taxes must file a return and pay the tax withheld for each calendar month by the end of the 15^th?day of the following month.

Due to this requirement, city of Detroit employers will be required to submit their monthly payments to Treasury electronically beginning in 2024. Treasury is working to implement an electronic payment system that will accept debit and credit cards or Automated Clearing House (ACH) or Electronic Fund Transfer (EFT) payments.

Debit and credit card payments will have a service fee, while ACH or EFT payments will not. Taxpayers interested in using a fee-free EFT payment method must submit a City of Detroit Electronic Funds Transfer Debit Applications, Account Update (Form 5473), which will be available by December 31, 2023.

In addition, state law requires employers to file an annual City of Detroit Income Withholding Reconciliation (Form 5321) before February 28 of the immediately following calendar year.

City Withholding Tax forms and documents will be updated to reflect the new monthly filings. The forms will only be available online or through applicable software vendors. Paper forms and booklets will no longer be printed and mailed to employers.

The option to file and pay quarterly will no longer be available.

Additional updates and updated tax forms will be provided in the coming months. Questions should be directed to?[email protected]?or call 517-636-5829.

Currently, there are 24 Michigan cities with municipality tax related to income; these can be business taxes (i.e., withholding or corporate income) or individual income tax. Apart from the City of Detroit, each city administers their own taxes, including filing and payment requirements. The Michigan Department of Treasury administers city of Detroit income, withholding and corporate income taxes.

VIDEO:?City of Detroit Withholding Tax to Be Paid Monthly in 2024

Be Cybersecurity Aware and Prepared to Fight Tax-Related Identity Theft

With Michigan's Cybersecurity Awareness Month in October coming to a close, the Michigan Department of Treasury is reminding Michiganders to be cybersecurity aware and prepared to fight tax-related identity theft.

Cybercriminals are constantly using new tricks?and?tactics online to obtain personal information so they can fraudulently file state income tax returns and claim refunds on behalf of unsuspecting taxpayers. Often, the taxpayer is already a victim of identity theft when a cybercriminal attempts to claim a state tax refund.

"Vigilance is really the key to fighting cybercrime," said Glenn White, who oversees Treasury?s Revenue Services programs. "Always examine the calls, emails and texts you receive to ensure they're from a verified source. If you have questions about your taxes or suspect you may be a victim of tax-related identity theft, always feel free to contact us for assistance."

To be cybersecurity aware and prepared to fight tax-related identity theft:

• Only connect to the internet over secure, password-protected networks.
• Do not click on links or pop-ups, open attachments or respond to emails from individuals you don't know.
• If you are unsure of the email sender, type a website name by hand rather than clicking on an embedded link.
• Do not respond to online requests for personally identifiable information. Most organizations--banks, universities, companies, Treasury--do not ask for your personal information over the internet.
• Limit who you share information with by reviewing the privacy settings of your social media accounts.
• Trust your intuition. If you think an offer is too good to be true, then it probably is.
• Password-protect all user accounts and devices that connect to the internet with strong passwords at least 12 characters long.
• Do not use the same password twice. Choose a password that means something to you and only you. Change your password on a regular basis.
• If something seems suspicious, report it to the proper authorities.

Cybercriminals typically try to create a sense of urgency to incite an immediate response from taxpayers. For example, a scammer may allude to taking criminal actions against you for failing to respond.

Read more on Treasury's website.

My Career at MI Treasury: MARK S. GUY