LANSING, Mich. — Thousands of Michigan taxpayers are still waiting for state income tax refunds months after filing, and state officials say a new tax processing system is a major reason why.
The Michigan Department of Treasury recently acknowledged that roughly 5% of tax returns remain unresolved, affecting an estimated 200,000 to 250,000 taxpayers. Officials told lawmakers that the delays stem from the state’s transition from a 40-year-old mainframe system to a new platform known as GenTax.
State Rep. Brad Paquette criticized Treasury officials following recent legislative testimony, arguing that taxpayers deserve better accountability and communication.
“The Michigan Department of Treasury says approximately 200,000 Michiganders still have problems with their tax returns,” Paquette wrote on social media. He questioned whether Treasury leadership has been adequately prepared to manage the new technology while implementing what officials have described as a culture of tax compliance.
Treasury officials maintain that the new system provides stronger fraud detection and performs more detailed reviews than the previous platform. Returns with missing information, discrepancies, or identity verification concerns can be automatically flagged for manual review, creating additional delays.
The department says more than 5 million returns have been processed and over $3.4 billion in refunds issued, but taxpayers whose returns were flagged continue to face lengthy waits.
The rollout has also generated other issues. Treasury acknowledged that thousands of taxpayers received confusing notices and that problems with automated phone updates created additional frustration for residents trying to track refunds. The department has since launched a public “Solutions Tracker” to address ongoing problems.
What Can Taxpayers Do?
For taxpayers still waiting on refunds, experts recommend:
• Log into Michigan Treasury eServices to check refund status rather than relying solely on automated phone messages.
• Respond immediately to any Treasury requests for identity verification or additional documentation. Delays often occur when information is missing or requires manual review.
• Contact your state representative’s office if your refund has been delayed for several months. Lawmakers often have staff dedicated to helping constituents navigate state agencies.
• Demand greater transparency from Treasury. Taxpayers should not be left guessing why their money is being held or when they can expect answers.
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A Possible Long-Term Fix
The state’s new technology may ultimately improve fraud detection and processing accuracy, but many taxpayers say the bigger issue is communication. A practical solution would be for Treasury to provide real-time online tracking that explains exactly why a return is delayed, what action is needed, and an estimated completion date.
For many Michigan families, a tax refund is not a bonus. It’s money earmarked for groceries, bills, debt payments, and household expenses. If the state expects taxpayers to meet deadlines, taxpayers have a right to expect timely service and clear communication in return.
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Libertarian party disavows candidate for Governor Anthony Hudson
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El-Sayed blames outdated funding approach for school woes
Michigan’s public schools suffer from an inadequate funding mechanism, Democratic U.S. Senate candidate Abdul El-Sayed said in recent comments reported by Fox News. But the state abandoned that approach to funding in 1994.
“Those public schools are deeply underfunded,” El-Sayed told Martha MacCallum during an Oct. 5 interview. “We continue to pattern the way we pay taxes based on property tax.”
Michigan spends an average of $23,867 per pupil, from all sources, and funding has risen more than 30% over the past two years. The national per-pupil average is $16,526, according to Shawn Cooper, education policy director at the Mackinac Center for Public Policy.
“Mr. El-Sayed’s belief that property taxes are responsible for funding education in the classroom is simply incorrect,” Cooper told Michigan Capitol Confidential. Click here to read more.
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The Mackinac Center Legal Foundation filed a lawsuit challenging Michigan’s effort to classify home caregivers as state employees for union representation. The lawsuit seeks to enforce the Michigan Constitution’s rules governing state employment and invalidate the election that certified SEIU Healthcare Michigan as the bargaining representative for home caregivers.
The foundation represents James “Jase” Bolger, a former member of the Michigan Civil Service Commission. Bolger brings the lawsuit as a citizen, as the Michigan Constitution allows any citizen to sue to enforce its civil service provisions.
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EVERETT, Wash. — Everett Public Schools is making a public apology and giving students time for Bible study.
The district reached a settlement with the non-profit LifeWise, which gives voluntary Bible education to public school students off campus during school hours.
The settlement requires school board members to take religious liberty training, make changes to the district’s policies about religious activities, and pay $275,000 in attorney’s fees, according to First Liberty Institute.
LifeWise is based in Ohio and operates near an estimated 1,200 schools across the U.S. First Liberty Institute, the group representing LifeWise, calls this a victory for students’ and families’ First Amendment rights. Click here to read more.
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WASHINGTON (TNND) — Tens of millions of Americans who rely on Social Security benefits will get limited relief from rising prices when they receive monthly checks in 2027.
Payments will increase by an average of $75 per month, the Social Security Administration said Wednesday. The 3.6% cost-of-living adjustment was announced as the Department of Labor’s Bureau of Labor Statistics published September’s Consumer Price Index showing inflation rose 3.7% over 12 months, marking a jump from August’s 3.4%. Between 2025 and 2026, the cost-of-living adjustment was 2.8%.
The Trump administration said next year’s adjustment will give 72 million beneficiaries “greater financial stability.” Click here to read more.
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The Civil Rights Division of President Trump’s Department of Justice (DOJ) is investigating “whether Pennsauken, New Jersey deprives citizens of their right to bear arms” via “delays in issuing firearm licenses.”
“The Second Amendment protects the right to keep and bear firearms — including the right to carry firearms. The investigation focuses on the Pennsauken Township Police’s permitting system,” the DOJ explained in a press release Wednesday.
The announcement also noted, “It is a violation of the Second Amendment for government officials to delay issuing permits to purchase or carry firearms. In 2022, the Supreme Court held in New York State Rifle & Pistol Ass’n, Inc. v. Bruen that a state’s permitting process is put towards ‘abusive ends’ when ‘lengthy wait times in processing license applications or exorbitant fees deny ordinary citizens their right to public carry.’” Click here to read more.
