Does Michigan Accept Federal Extension?

Tax extensions offer taxpayers additional time to prepare and submit their income tax returns. While an extension provides relief from late-filing penalties, it does not extend the deadline for paying any taxes owed. Understanding each state’s tax authority policies helps taxpayers avoid potential penalties and interest charges.

Michigan’s Automatic Extension Policy

Michigan allows an automatic extension for filing individual income tax returns (Form MI-1040) if a federal extension has been filed with the Internal Revenue Service (IRS). Taxpayers who submit federal Form 4868 will receive an automatic six-month extension to file their Michigan return. This means the filing deadline aligns with the extended federal due date, usually October 15 for calendar year filers.

This automatic extension applies only to the time allowed for filing the tax return, not for paying any tax liability. Any tax due to Michigan must still be paid by the original due date, typically April 15, to avoid penalties and interest. If a payment is due, taxpayers should send the estimated tax payment with a copy of their federal extension (Form 4868). Failure to pay taxes by the original deadline can result in penalties of 0.5% of the unpaid tax per month, up to a maximum of 25%, along with accrued interest.

Requesting a Specific Michigan Extension

A separate Michigan extension may be necessary if a federal extension is not filed. Taxpayers who do not file a federal extension, or who need an extension for specific Michigan tax forms other than the individual income tax, might need to use Michigan Form MI-4. This form is used to request additional time.

Form MI-4 is also required for certain entities like composite filers, even if they have a federal extension. The form requires the taxpayer’s identification details, the tax year for which the extension is requested, and an estimate of the tax liability. This ensures the Michigan Department of Treasury can process the request and associate any payments.

Submitting Your Michigan Extension Request

When a separate Michigan extension is required using Form MI-4, taxpayers have a few options for submission. If an estimated tax payment is included, the completed Form MI-4 and payment can be mailed to the Michigan Department of Treasury. The mailing address is provided with the form.

Alternatively, taxpayers can make extension payments electronically through the Michigan Department of Treasury’s e-Payments service. If payment is made electronically, there is no need to mail Form MI-4. Regardless of the submission method, any tax owed must be paid by the original deadline to prevent late payment penalties and interest charges from accruing.