About Discovery & Tax Enforcement

The Discovery and Tax Enforcement Division was created in January 1987, as part of an enhanced enforcement initiative that followed the Tax Amnesty Program of 1986. The division is located within the Tax Compliance Bureau and is comprised of various units with a variety of responsibilities.

Discovery promotes taxpayer education and tax registration and licensing, while helping to maintain voluntary tax compliance.

The Tax Enforcement Unit concentrates on civil and criminal investigation and prosecution of tax fraud cases, working in conjunction with the Michigan State Police, other law enforcement agencies, and the Attorney General.

The Discovery Unit is responsible for developing and conducting projects designed to identify and contact non-filers and under-reporters of the various taxes administered by the Michigan Department of Treasury. Taxpayers are notified of their tax discrepancies using letters of inquiry issued in accordance with MCL 205.21 of the Revenue Act .

The Discovery Unit utilizes information from a variety of sources to identify non-compliant taxpayers.

The Discovery Unit also administers Michigan's Voluntary Disclosure program and the Taxpayer Initiated Disclosure Penalty Waiver program.

The Discovery Unit sends letters of inquiry to non-filers of Michigan taxes offering Michigan's Voluntary Disclosure. Voluntary Disclosure was designed to allow non-resident taxpayers to voluntarily come forward and report unpaid taxes. In exchange for payment of tax and interest and future tax compliance, a limited lookback period and waiver of penalty may be offered.

A person that does not qualify under voluntary disclosure legislation may be able to utilize the Taxpayer Initiated Disclosure program and may be eligible for a penalty waiver as outlined in RAB 2005-03, Penalty Provisions.

For a complete list of frequently asked questions pertaining to all tax types go to www.michigan.gov/taxes and click on "FAQ" in the gray shaded area at the top of the page. Additional information regarding the various taxes can also be obtained at the www.michigan.gov/taxes web site by typing "tax text" in the "Advanced Search" box located in the upper right hand corner of the page and then clicking go.

A list of helpful hints has been prepared to assist you when calling, writing, or making a payment for a letter of inquiry you have received.