CIT and MBT E-Filing Requirement Effective January 1, 2027

Beginning January 1, 2027, the Michigan Department of Treasury (Treasury) will require returns for Corporate Income Tax (CIT) and Michigan Business Tax (MBT) to be filed electronically (e-file). This notice is intended to inform those impacted by this change and outline situations where Treasury will accept a paper filed return.

E-File Requirement

The Michigan Income Tax Act (MITA) and Michigan Business Tax Act (MBTA) grant Treasury authority to prescribe the form of the returns required under those acts. MCL 206.685(1); MCL 208.1505(1). Subject to exceptions administered through Form 4833, Treasury has exercised that authority to impose an e-filing requirement for CIT and MBT returns that were either computer-generated or prepared by software. To maintain consistency with federal e-file requirements and to enhance the accuracy of data Treasury receives, Treasury will be imposing the e-file requirement on all CIT and MBT returns, subject to the exceptions within this notice.

Effective January 1, 2027, Treasury will only accept e-filed returns from MBT and CIT taxpayers (including standard taxpayers, insurance companies, and financial institutions). This requirement will apply to all returns filed on or after that date, including all original and amended returns, unless the taxpayer qualifies for one of the four exceptions below.

If payment is included with a paper filed return that does not qualify for an exception listed below, the payment will be processed and credited to the taxpayer's account, but the return will not be processed and a letter will be sent to the taxpayer informing the taxpayer of the requirement to e-file.

As Michigan does not have a direct e-file option for either CIT or MBT, taxpayers must rely on third-party software to e-file their returns with Michigan. Treasury will continue to accept specified PDF attachments included with CIT and MBT e-filed returns.

Exceptions to E-file Requirement

Taxpayers should rely on the exceptions below to paper file their return. While Form 4833 has been used to request e-file exceptions previously, that form has been discontinued. All taxpayers are subject to the filing exceptions and procedures within this notice. The four exceptions to the e-filing requirement are:

1. The taxpayer falls below the federal e-filing threshold. Currently, federal regulations require any corporate taxpayer that files 10 or more returns annually to e-file. See 26 CFR 301.6011-5. For purposes of the federal e-file threshold, a return includes informational returns (such as W-2s and 1099s), income tax returns, employment tax returns, and excise tax returns.

2. The taxpayer has secured a federal e-filing waiver and has included their federal waiver approval letter with their paper-filed return.

3. The taxpayer is seeking relief under section 505(b) of the U.S. Bankruptcy Code and has included the Request for Prompt Determination of Tax Liability along with their paper-filed return. See Rev Proc 2006-24.

4. The taxpayer requests an exception for any other reason, including a religious exception, provided the taxpayer has contacted Treasury to request that exception at least 60 days in advance of the Michigan filing deadline. Taxpayers seeking to paper file under this exception may contact Treasury by webservice request, by phone, or by mail.

Additional Information

Treasury will be developing additional resources and communications to notify stakeholders, including taxpayers and third-party software vendors, about this upcoming change in policy. Treasury will also be updating the relevant forms, instructions, and other informational guidance, as applicable. Future updates related to the e-file requirement will be available online at www.michigan.gov/treasury.

Contacting Treasury

The following options should be used to contact Treasury with exception requests or general questions about this notice:

Web service requests:

https://etreas.michigan.gov/bt/home

Phone requests:

517-636-6925

Mail requests:

Michigan Department of Treasury

P.O. Box 30059

Lansing, MI 48909