200,000 Michigan Taxpayers Still Waiting for Refunds as Treasury Faces Tough Questions
LANSING, Mich. — Thousands of Michigan taxpayers are still waiting for state income tax refunds months after filing, and state officials say a new tax processing system is a major reason why.
The Michigan Department of Treasury recently acknowledged that roughly 5% of tax returns remain unresolved, affecting an estimated 200,000 to 250,000 taxpayers. Officials told lawmakers that the delays stem from the state’s transition from a 40-year-old mainframe system to a new platform known as GenTax.
State Rep. Brad Paquette criticized Treasury officials following recent legislative testimony, arguing that taxpayers deserve better accountability and communication.
“The Michigan Department of Treasury says approximately 200,000 Michiganders still have problems with their tax returns,” Paquette wrote on social media. He questioned whether Treasury leadership has been adequately prepared to manage the new technology while implementing what officials have described as a culture of tax compliance.
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Click here to watch the entire testimony.
Treasury officials maintain that the new system provides stronger fraud detection and performs more detailed reviews than the previous platform. Returns with missing information, discrepancies, or identity verification concerns can be automatically flagged for manual review, creating additional delays.
The department says more than 5 million returns have been processed and over $3.4 billion in refunds issued, but taxpayers whose returns were flagged continue to face lengthy waits.
The rollout has also generated other issues. Treasury acknowledged that thousands of taxpayers received confusing notices and that problems with automated phone updates created additional frustration for residents trying to track refunds. The department has since launched a public “Solutions Tracker” to address ongoing problems.
What Can Taxpayers Do?
For taxpayers still waiting on refunds, experts recommend:
• Log into Michigan Treasury eServices to check refund status rather than relying solely on automated phone messages.
• Respond immediately to any Treasury requests for identity verification or additional documentation. Delays often occur when information is missing or requires manual review.
• Contact your state representative’s office if your refund has been delayed for several months. Lawmakers often have staff dedicated to helping constituents navigate state agencies.
• Demand greater transparency from Treasury. Taxpayers should not be left guessing why their money is being held or when they can expect answers.
A Possible Long-Term Fix
The state’s new technology may ultimately improve fraud detection and processing accuracy, but many taxpayers say the bigger issue is communication. A practical solution would be for Treasury to provide real-time online tracking that explains exactly why a return is delayed, what action is needed, and an estimated completion date.
For many Michigan families, a tax refund is not a bonus. It’s money earmarked for groceries, bills, debt payments, and household expenses. If the state expects taxpayers to meet deadlines, taxpayers have a right to expect timely service and clear communication in return.