State to Help Detroit Collect Business Taxes
Detroit officials say they hope allowing e-filing taxes encourages more firms in the city to pay their tax bills.
State officials say they are taking charge of handling some business and corporate taxes filed in Detroit.
Detroit agreed to have the Michigan Treasury Department process corporate, partnership and fiduciary income tax returns for the 2016 tax year. The state will also collect those taxes and enforce any income tax withholding.
Detroit Deputy Treasurer Deborah Pospiech says the state offered individuals the chance to pay taxes online and the city saw 100,000 new filers.
She hopes business owners in Detroit will follow suit.
Pospiech said, “We do believe based on our research that there are a lot of business filers who are not complying with the law. And it may just be the burden of paperwork. And perhaps e-filing will incentivize them to come forward.”
Detroit officials say the move will improve the city’s ability to accurately gauge who has sent returns as well as enhance enforcement and compliance efforts.
