Michigan’s Tax System Switch Causes Refund Delays

Michigan revamped its aging tax system this spring, and the transition has led to longer refund times.

Processing status: The state reports 95 % of the 2025 returns have been processed, yet many taxpayers still experience delays beyond typical timelines.
Purpose of the overhaul: Designed for greater security and accuracy, the new system added extra steps for complex returns or those lacking complete information.
Filing timeline:
Filing opened: January 26
Deadline: April 15
Expected refund window: electronically filed returns by late May; paper filings take longer.
Interest policy: Refunds taking over 45 days trigger interest payments from the state to taxpayers.
Transition analogy: Officials compared updating a 40‑year‑old process to moving from a landline to a smartphone—prioritizing data protection and error reduction, which slowed throughput.
Professional involvement: Tax experts tested the system, highlighting issues with retirement documents; their feedback was crucial for pre‑launch bug fixes.
Current glitch: The automated phone line sometimes misreports refund status. A July fix will replace it with a callback option, eliminating hold times.
Acknowledgment: The state thanked both taxpayers and tax professionals for their patience as the new system stabilizes.