DETROIT (WWJ) – The city of Detroit wants you to pay up if you owe back taxes to the city.
Mayor Dave Bing Wednesday announced that individuals or companies that owe income taxes to the city can pay their back taxes without penalty from Jan. 22 through Feb. 16 under a tax amnesty program.
“We are encouraging any individual or company that has failed to pay income taxes to the City of Detroit to take advantage of this program,” said Mayor Bing, in a statement. “Now is the time to save money and settle your tax debt with the City.”
Detroit Finance Director Cheryl said any resident or non-residents who works in the city and earns more than $600 a year is required to pay city income taxes , regardless of where their employer is located. “Anyone who has not filed an income tax return or has an outstanding balance due for the years 2011 and prior is eligible for the amnesty. And if they make the payments during the amnesty period, all the penalties will be forgiven,” she said.
Johnson said the city hopes to raise $4 million through the tax amnesty program.
To take advantage of the program, individuals and companies must:
· Complete income tax returns for the eligible years. The returns should be accompanied by company-issued W-2 forms and all federal schedules to support deductions.
· File delinquent income tax returns and pay outstanding balances by mail or in person from Jan. 22 – Feb. 16 at the following location:
Finance Department – Income Tax Division
Coleman Young Municipal Center, 2 Woodward Ave. – Suite 130, Detroit MI 48226
Monday – Friday from 8 a.m. – 4 p.m.
Saturday from 9 a.m. – noon (Use Randolph entrance on weekends)
(313) 224-3315 (office)
· Pay by mail: The delinquent amount must be paid in full using a cashier’s check or money order. No cash or personal checks will be accepted through the mail. Incorrect payment amounts will result in an adjusted balance due.
· Pay in person: The delinquent amount must be paid in full using a cashier’s check, money order, cash or credit/debit card. Credit/debit cards will only be accepted in person and an additional 2.5% service fee applies. No personal checks will be accepted.
The Mayor issued a reminder to those who don’t take advantage of the amnesty program. “The City will not be writing off delinquent balances,” Bing said. “After the amnesty period, we will take more aggressive collection actions including providing delinquent reports to credit agencies.”
For more information and to obtain tax forms, visit www.detroitmi.gov/incometax. Additional tax information is also available on the City’s Web site by clicking Departments and then Muni Code.
The tax amnesty program is part of a broader move to overcome a persistent budget deficit that has Detroit’s financial management under review for a possible state takeover.