If you are one of many taxpayers who are overpaid on the first Michigan Business Tax (MBT) return, you have some good news and some bad news.

First the good news; the state of Michigan will be refunding overpayments.  Unlike the state of California where the State Controller has said that unless they get a budget agreement, the State will start issuing IOU’s for any refunds; Michigan will be issuing refund checks.

Now the bad news; you may have to wait up to 16 weeks for the refund check.  Processing of the first year MBT returns is taking much more time than was expected.  Not only does the state have a new tax, but they also have a new computer platform processing the returns.  Approximately 90,000 MBT returns were filed on or about April 30th.  There were about 20,000 extensions. 

Following is some advice from Floyd Schmitzer, Administrator of the Tax Processing Bureau at the Michigan Department of Treasury.

1.Do not file a second MBT return if you have not received a refund.

2.Attach statements and schedules to the MBT return where an explanation is warranted. 

3.Do not send or attach original documents to the MBT return.