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Tax Debt Help in Michigan: IRS Options and Free Clinics

By the Tax Relief Answers editors · Sources checked November 3, 2026 · How we check

The short answer

Michigan has a state individual income tax (filed on Form MI-1040), collected by the Michigan Department of Treasury, so people in Michigan can owe both Treasury and the IRS, and a plan with one does not cover the other. Treasury says you are not eligible for an installment agreement until it issues a bill (Form 168 or Form 169), and that a tax lien may be placed while you are on a plan, as of November 2026. IRS Publication 4134 (Rev. 1-2026) lists 4 Low Income Taxpayer Clinics in Michigan for federal tax problems.

Federal vs state: who to contact for what

If the debt is federal

The IRS options are the same in every state, so this page does not repeat them: an IRS payment plan, an Offer in Compromise, Currently Not Collectible status and first-time penalty abatement. Each of those pages has the current IRS rules, fees and dates. A federal tax lien follows its own rules; see federal tax lien and lien vs levy. You can request each IRS option directly from the IRS.

If the debt is owed to the Michigan Department of Treasury

Treasury's FAQ "What should I do if I cannot pay my debt in full?" says that before a "Bill for Taxes Due" is issued, you are not eligible for an installment agreement, but you can send payments with Form MI-1040-V or through Treasury eServices. After you receive a Bill for Taxes Due (Form 168, Intent to Assess) or a Final Bill for Taxes Due (Form 169, Final Assessment), Treasury may consider an installment agreement if your situation meets its criteria.

Treasury's installment agreement page lists three ways to ask: the Collections eService (using information from a Treasury collection letter), mailing the Installment Agreement form, or calling the Collection Services Bureau at (517) 636-5265. Treasury will ask for a proposed monthly payment and may ask for proof of income, expenses, assets and other debts. If the plan is not approved right away, Treasury says to keep paying while it reviews your request.

What a Michigan installment agreement does not stop

The same Treasury page says that while you are on an approved installment agreement:

• Penalties and interest keep accruing until the balance is paid in full.
• A tax lien may be placed to protect the state's interest.
• Your Michigan tax refund is redirected to your collections account and applied to the end of the plan.
• New debts and missed payments may cancel the plan, and collection actions may resume.

Free Low Income Taxpayer Clinics in Michigan

Low Income Taxpayer Clinics (LITCs) are independent organizations that receive IRS grants and represent people in disputes with the IRS for free or a small fee. IRS Publication 4134 (Rev. 1-2026) says they generally serve people whose income does not exceed 250% of the federal poverty guidelines. The publication describes them as help with IRS disputes, so they are not the channel for a state tax debt. These are the Michigan clinics it lists; the city is the main office, and many clinics serve a wider area.

Publication 4134 lists each clinic's phone number and languages; the Taxpayer Advocate Service LITC page has the current search tool.

Taxpayer Advocate Service office in Michigan

The Taxpayer Advocate Service (TAS) can help, at no cost, people who have not been able to resolve a tax problem with the IRS. Its contact page lists this local office for Michigan as of November 2026:

TAS says to open a new case with Form 911 or through its toll-free number, 1-877-777-4778; the local office is for people with an open TAS case who need to reach their advocate after more than 30 days. TAS works on federal tax problems, not state tax debts.

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