To request a payment plan with the Michigan Department of Treasury, fill out the Michigan Form 990 installment agreement request, sign it, and mail it with your first proposed payment to the Collection Services Bureau in Lansing. The form is a single page that covers individual income tax, business taxes such as sales and withholding, and driver responsibility fees. Get it right the first time: an incomplete form or a payment the state considers too low will bounce the request back and leave your account exposed to collections.
Check That You Qualify Before You File
The Treasury will not review a request until every overdue return has been filed and processed.1Michigan Department of Treasury. How Do I Apply for an Installment Agreement? If you have unfiled returns, file those first or the application will be rejected outright. The debt also has to be finalized, meaning it is not under active appeal or dispute.
Taxpayers in an active bankruptcy case are generally ineligible, because the bankruptcy proceeding controls how the debt gets handled. The core test is simple: you have to show you cannot pay in full right now but can make regular payments over time. If you can pay in full, the state expects you to.
Filling Out Form 990
Form 990 is a one-page PDF on the Michigan Department of Treasury website.2Michigan Department of Treasury. Michigan Installment Agreement Form 990 Work through it in order:
- Treasury Account Number, in the upper right corner of the notice you received. It starts with an “F” or an “S.”
- Full legal name (first, middle, last) or complete business name, plus your street address.
- Type of entity: check the box that matches your situation. For driver responsibility fees, check “Individual.”
- Phone numbers where the Treasury can reach you Monday through Friday, 8 a.m. to 5 p.m.
- Assessment number(s) from your notice. If you are unsure of your total balance, use the amount on your most recent notice.
- If the debt belongs to a business, list all owners, partners, officers, and major shareholders.
- Proposed payment: enter the monthly or bi-weekly amount you propose, rounded up to the next whole dollar (no cents), and your preferred due date.
- Signature, Social Security number, and date. If the debt is joint, your spouse must also sign.
- Name and address of your bank.
- Your employer’s name and address.
Every person listed on the tax debt has to sign, or the Treasury will send the form back. If you want payments pulled automatically, complete the Electronic Funds Transfer authorization section and include it with the application.2Michigan Department of Treasury. Michigan Installment Agreement Form 990
When You Need Extra Financial Disclosure
Two situations trigger additional paperwork. If you receive vendor income from the state (the state pays you as a contractor or vendor), you also have to complete Form 3189 (Collection Information Statement for Individuals) or Form 856 (Collection Information Statement for Businesses).2Michigan Department of Treasury. Michigan Installment Agreement Form 990 These forms require detailed disclosure of assets, monthly income, and living expenses so the state can verify your proposed payment reflects what you can actually afford.
Plans lasting longer than 48 months may also require Form 3189 for individuals.3Michigan State University. Michigan Tax Debts If your balance is large enough that a reasonable monthly payment would push the plan past four years, gather bank statements, pay stubs, and a list of monthly expenses before you start.
Where to Send It
Mail the signed Form 990 with your first payment (in the amount you proposed) to:
State of Michigan
Department of Treasury
Collection Services Bureau
P.O. Box 30199
Lansing, MI 489092Michigan Department of Treasury. Michigan Installment Agreement Form 990
Include the payment coupon from your notice. The first payment goes in the same envelope as the application. Do not wait for approval to send money. If you chose Electronic Funds Transfer, include the completed EFT form.
The Treasury does not publish a guaranteed turnaround time. If the request is not approved, you will receive written notification.2Michigan Department of Treasury. Michigan Installment Agreement Form 990 There is no confirmed online option; the process runs through the mailed form. Questions while filling it out go to the Collection Services Bureau at 517-636-5265 for individual accounts or 517-827-3227 for business accounts.4Michigan Department of Treasury. Contact Us and How to Pay
How Long the Plan Can Run and What Interest Will Cost You
The form itself does not cap the repayment period at a specific number of months for most tax types, but the state expects your proposed payment to reflect the most you can afford each month. Once a plan stretches past 48 months, the Treasury will want a full financial picture through Form 3189. Driver responsibility fee plans cannot exceed 24 months.2Michigan Department of Treasury. Michigan Installment Agreement Form 990
Interest accrues on the unpaid balance for the life of the agreement. Michigan sets the rate under MCL 205.23 at one percentage point above the adjusted prime rate, recalculated every six months.5Michigan Legislature. Michigan Code 205-23 From January 1 through June 30, 2026, the effective annual rate is 8.48 percent.6Michigan Department of Treasury. Revenue Administrative Bulletin 2025-13 Factor that rate into your proposed payment. A plan that barely covers monthly interest will never touch the principal, and the Treasury is likely to reject it.
Staying Compliant After Approval
Approval comes with conditions. You have to stay current on all future tax obligations — filing on time and paying any new taxes owed — for the entire duration of the plan. New debts or missed payments can cancel the agreement, and collection actions will resume once it is voided.7Michigan Department of Treasury. Installment Agreement
Resumed collection is not a warning letter. The Treasury can pursue wage garnishment, bank levies, and seizure of your state tax refund, and penalties on the underlying debt can be significant.8Michigan Department of Treasury. Collections If you know you will miss a payment, call the Collection Services Bureau before the due date, not after.
A Note on Tax Liens
An approved installment agreement does not stop the state from filing a tax lien. The Treasury may record a lien to protect its interest in the debt even while you make every payment on time.7Michigan Department of Treasury. Installment Agreement Liens are public records, so lenders who check public records during underwriting can still see them.
If You Cannot Afford Any Monthly Payment
If even a small monthly payment would push you below basic living expenses, an installment agreement is not the right tool. Michigan has two other paths.
Currently Not Collectible Status
The Treasury can mark your account currently not collectible when it determines you cannot afford to pay. This pauses active collection rather than erasing the debt, and the state will periodically review your finances to decide whether collection should resume. Keep your contact information current with the Collection Services Bureau while the status is in place.9Michigan Department of Treasury. Currently Not Collectible
Offer in Compromise
Michigan also lets taxpayers settle for less than the full amount through an Offer in Compromise. The state accepts three grounds: doubt as to collectability (you cannot pay in full), doubt as to liability (you dispute that you owe the tax), and an offer based on an accepted federal compromise from the IRS.10Michigan Department of Treasury. Offer in Compromise The bar for acceptance is high and the process is more involved than a Form 990 request, but for genuine hardship it can resolve the debt for a fraction of the balance.