Michigan Underpayment

[FrankAllegan]

Due to an error on the part of my employed, my Michigan Income Tax was underpaid in 2023.  I now have an underpayment penalty and interest to the tune of $299, plus the back taxes I owe.  Is there a way to get the fee waived since it was not my fault?  My employer thinks there is.

[Cynthiad66]

Yes.  You can request a waiver from the IRS.

To request a waiver when you file, complete IRS Form 2210 and submit it with your tax return. With the form, attach an explanation for why you didn't pay estimated taxes in the specific period that you're requesting a waiver. Also, attach documentation that supports your statement.

[FrankAllegan]

Thanks.  Does Michigan have a comparable form, since the underpayment is on state taxes?  Also could the documentation be the email I received from HR saying it made the error and apologizing for the inconvenience?

[Cynthiad66]

Yes.  Michigan does have a similar form and waiver process.  

Requests for a penalty waiver must be in writing. Penalty may be waived on an assessment if you can show reasonable cause for your failure to pay on time. Reasonable cause includes serious illness or death, a fire or natural disaster, or criminal acts against you. Documentation may be requested to substantiate the reason for your penalty waiver request. Reference RAB 2022-24

Use this link to Request a Waiver of the Estimated Tax Penalty for Michigan

@FrankAllegan