It’s late May 2026 and Michigan taxpayers continue to receive confusing “Notice of Adjustment” letters from the State of Michigan even after the Michigan Department of Treasury stated the issue had been corrected.
Earlier this spring in April, Treasury acknowledged that an error affected adjustment notices tied to estimated tax payments and credit carryforwards. According to the State of Michigan, approximately 27,000 incorrect letters were mailed to taxpayers.
Treasury later stated that corrected notices would be mailed and that taxpayers generally did not need to take action while the issue was being resolved. However, based on what we’re currently seeing in our office, the situation may not be completely cleaned up yet.
Michigan Treasury Issued an Update on Incorrect Adjustment Notices
Michigan Treasury Issued an Update on Incorrect Adjustment NoticesAccording to the Michigan Treasury’s official Solutions Tracker, the issue involved errors in “Notice of Adjustment” letters dated between April 7 and April 28, 2026.
The notices reportedly displayed incorrect estimated payments and credit carry-forward information.
- Taxpayer prepayments were still properly applied internally
- Information inside Michigan Treasury eServices was displaying correctly
- Corrected notices would be mailed before appeal deadlines expired in most situations
Treasury also announced on May 5, 2026 that corrected letters had started mailing to impacted taxpayers.
Some Taxpayers Are Still Concerned
Even after Treasury announced the issue was corrected, we are continuing to see questionable notices arrive. Our office has recently reviewed:
- A large batch of client notices dated May 19, 2026
- An additional notice received on May 26, 2026 that carried a notice date of May 28, 2026
That doesn’t necessarily mean every notice is wrong. But it does suggest that not all adjustment notice issues may be fully resolved yet. And when a tax notice shows balances due, missing estimated payments, or incorrect carryforwards… taxpayers understandably panic a little.
What Michigan Taxpayers Should Do Right Now
If you receive correspondence from the Michigan Department of Treasury regarding estimated payments, adjustments, balances due, or carry-forward discrepancies:
Don’t Ignore It
Even if the notice turns out to be incorrect, appeal deadlines and response windows still matter. We strongly recommend forwarding any Michigan tax notices to your accountant for review before responding on your own. At Lotito & Lazzara, nerds are reviewing these notices on a case-by-case basis because the correct Michigan Treasury response and action may vary depending on the taxpayer’s account history and the type of notice received.
In Some Situations, Waiting May Be Appropriate
Not every notice requires an immediate response. In some cases, Treasury may still automatically issue additional corrections. However, in other situations, filing a response or formal appeal may still be necessary to protect your rights. That’s why having someone review the actual notice matters.
Our Recommendation
For now, we recommend that clients continue sending us any Michigan Treasury correspondence they receive related to these adjustment notices. The situation appears to be evolving, and we expect additional clarification to continue to come from Treasury. Until then, the safest move is simple:
- Don’t panic.
- Don’t assume the notice is correct.
- And definitely don’t throw it in a kitchen drawer next to expired coupons and old takeout menus.
If you’re already a Lotito & Lazzara client, upload your notice securely through our Client Portal so we can review it with you. Our nerds can help you understand a Michigan adjustment notice or estimated payment issue, and our Tax Services team can help you sort through the WTFluff.
Lotito & Lazzara and the team of nerds continue monitoring updates from the Michigan Department of Treasury. That’s just what we do for fun, anyway.
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