

State Rep. David Martin today joined the House Oversight Committee in seeking answers from the Michigan Department of Treasury after more than 27,000 taxpayers received incorrect notices stating they would receive a smaller refund or owe additional taxes.
“Taxpayers need accurate information from their government,” Martin said. “Thousands of residents received notices that caused unnecessary confusion and concern. Treasury needs to explain how this happened and what steps are being taken to prevent it from happening again.”
The House Oversight Committee on Tuesday questioned Treasury officials about the error, which caused thousands of taxpayers to incorrectly believe they owed additional money to the state or would receive smaller refunds. While Treasury officials cited issues related to a new information technology system, lawmakers said technical problems do not excuse the department’s failure to respond to residents seeking assistance
“A technology issue does not excuse poor communication,” Martin said. “When people have questions about their taxes, they should be able to get answers in a timely fashion. Residents should not have to jump through hoops to get basic information from a state department.”
Until recently, Treasury officials had not publicly addressed the issue, prompting lawmakers to bring department leaders before the House Oversight Committee. Martin said many residents turned to legislative offices for assistance as delays and communication problems persisted.
“People work hard for their money and expect state government to handle tax matters responsibly,” Martin said. “Treasury owes taxpayers clear answers and a commitment to fix the problems that led to this completely avoidable situation.”
Martin said lawmakers will continue monitoring the issue until all affected taxpayers receive accurate information and any remaining refund issues are resolved.

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