Michigan Treasury Officials Face Lawmakers Over Tax System Delays
Michigan’s new GenTax tax platform drew bipartisan fire at a House Oversight hearing Tuesday, as lawmakers demanded answers over delayed refunds and bad notices sent to filers.
LANSING, MICHIGAN — Michigan Treasury officials faced sharp criticism from lawmakers on both sides of the aisle Tuesday during a tense House Oversight Committee hearing focused on problems with the state’s new GenTax tax processing platform, which has caused delayed refunds and incorrect tax adjustment letters for Michigan residents.
Bipartisan Frustration Over Delayed Refunds
Committee members from both parties voiced complaints about the hardships the new system has created for their constituents since the state transitioned away from its 40-year-old legacy tax platform last year. The issues ranged from late or delayed tax refund payments to erroneous tax adjustment notices sent to filers.
Michigan Deputy Treasurer Kavita Kale appeared before the committee alongside Theresa Newtown, the state’s director of revenue compliance, and Katina Litterini, Michigan’s director of the tax administration services division. The officials acknowledged the system’s shortcomings while defending its long-term benefits.
“We have heard your concerns regarding delayed refunds, difficulty reaching the department, and the resulting strain on your offices and your constituents,” Kale said during the June 16 hearing.
What Went Wrong and What Officials Are Promising
The GenTax software is produced by Fast Enterprises and is described as an “off-the-shelf” product, meaning it typically requires little customization to meet the needs of government tax agencies. According to Litterini, the platform is used by half of all state revenue agencies across the country and is considered a national leader in tax system modernization.
Litterini said the new system provides taxpayers and filers with e-services such as document uploads, and also opens new direct communication channels with specific Michigan Department of Treasury divisions. Kale pointed to enhanced fraud prevention tools, stronger system integrity, and improved risk mitigation as advantages over the aging system it replaced.
Out of approximately 5 million returns collected during the 2025 tax season — with returns due in April — a portion of filers experienced delays or errors connected to the platform transition, according to the Michigan Advance.
Department Pledges Penalty Waivers, Increased Transparency
Treasury officials told committee members that the department has posted a notice on its website acknowledging the setbacks taxpayers have experienced. They also committed to waiving penalties for taxpayers affected by the system’s problems.
Officials promised further improvements to the GenTax platform going forward, though specific timelines for those fixes were not detailed during the hearing. The Michigan House Oversight Committee did not take a formal vote during the session, according to the Michigan Advance’s reporting on the June 16 meeting.
