Michigan taxpayers still waiting months for refunds as delays persist, resident urges lawmakers to act

Months after filing their returns, some Michigan taxpayers say they're still waiting for refunds as lawmakers demand answers from Treasury officials over a troubled tax system rollout.

LANSING, Mich. — More than five months after mailing his Michigan income tax return, Bob [last name withheld at request] says he still has no idea when he will receive his state tax refund, adding his experience reflects ongoing frustrations shared by taxpayers across the state.

Bob said he and his wife mailed their Michigan return on Feb. 11. Weeks later, the Michigan Department of Treasury requested additional identity verification documents, including copies of Social Security cards, driver’s licenses and tax forms.

“I’ve been filing with the state of Michigan for 50 years,” Bob said during an interview. “This is the first year we’ve ever had an issue.”

Bob said he completed the verification request but has continued receiving inconsistent status updates.

“One time it said we were going to receive it on Wednesday. It didn’t happen. The next time it said they were going through a verification process. Now it just says ‘status unknown,’” he said.

His wife said she has seen similar complaints posted on social media and knows of another taxpayer who submitted requested documents twice before later receiving notice that Treasury claimed they had never been received.

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The complaints come as the Michigan Department of Treasury continues working through issues tied to its transition from a 40-year-old legacy tax processing system to a new GenTax platform that launched late last year. Treasury officials have said the modernization was intended to improve security, fraud detection and overall tax administration but acknowledged the transition created problems for some taxpayers.

According to Treasury, approximately 95% of tax returns had been processed by early June, with roughly 250,000 taxpayers still waiting for refunds. Officials said remaining returns often involve identity verification, missing information, complex tax credits or other issues requiring manual review.

The delays also prompted sharp questioning from members of the Michigan House Oversight Committee during a June hearing.

Lawmakers pressed Treasury officials over delayed refunds, erroneous notices sent to taxpayers and communication problems, including reports of residents struggling to reach the department by phone. Treasury officials defended the new system as more secure while acknowledging the rollout created significant challenges.

Bob said the state’s explanations have done little to ease his concerns.

“It’s our money,” he said. “Get some pressure on the Treasury and get them doing their job and get our money back in our pockets.”

He also questioned why taxpayers face penalties and interest for late payments while there is no comparable consequence when refunds are delayed.

“If we owe them money, we have to pay penalties,” he said. “But we’re just supposed to sit here and put up with them.”

Treasury has since launched an online page providing tax return processing updates and says nearly 90% of refunds are issued within the normal four-to-six-week timeframe. The department says returns requiring additional review represent a minority of filings and continues to advise taxpayers to monitor their refund status online while processing continues.

For Bob, however, the uncertainty remains the biggest frustration.

“We have no idea when it’s coming,” he said. “They need to stop with the excuses.”