This week I had a very long discussion with an attorney with whom I have a long professional relationship.  The story he related to me brings home the importance of the Tax Clearance Certificate when purchasing a business.  The forms and instructions for obtaining a Tax Clearance Certificate can be obtained from the Treasury website.

Form 501 Tax Clearance Request for Corporation Dissolution or Withdrawal.  A tax clearance certificate must be obtained within 60 days of dissolution or withdrawal of a corporation from the State of Michigan.  A certificate will not be issued until all returns are filed and all liabilities are paid.

Form 514 Conditional Tax Clearance Request.   This is a request for a Michigan Conditional Tax Clearance by a Sole-Proprietorship or Corporation which has sold substantially all of its assets, but the corporate shell will remain to continue filing Michigan tax returns when due until the corporation later determines whether it will file a Certificate of Dissolution with the Corporation Division.  A business requesting a Michigan Conditional Tax Clearance should forward all UNFILED Michigan Tax returns (up to date of discontinuance) together with all remittances for those returns, to the attention of the COLLECTION DIVISION, TAX CLEARANCE SECTION.  Returns and remittances not addressed to the TAX CLEARANCE SECTION will enter the regular mail stream and do not become available for inspection until several months after mailing.

All tax clearance forms should be sent to the Department of Treasury at the following address:

TAX CLEARANCE SECTION, Michigan Department of Treasury, P.O. Box 30199, Lansing, Michigan 48909.