Clearances - Income Tax and Accounts Receivable

  

Clearances

A clearance is a verification that an individual, business or sub-contractor seeking employment, contract, or a business license with the City of Detroit does not have any outstanding debt with the City of Detroit and is current on all of their City of Detroit Income Taxes.

 

Good News! We have combined the Income Tax and Accounts Receivable into 1 easy to use online application.

Denials - If you have received a denial from your clearance application and have completed your outstanding action items, email [email protected].  DO NOT resubmit below.  This will result in rework and longer processing time.

 

Please select the appropriate clearance application. The application includes 2 pages:

Page 1 - Application Information

Page 2 - Securely submit your social security and/or EIN to the City of Detroit

 

Both pages are required in order to complete your application.  (Failure to do so could result in a longer processing time)

 

Please allow 7-10 business days for an update on your clearance.

 

Individual

Individual Clearance Application

A person who is looking to do business with the City of Detroit but is not applying on behalf of a business. All residents of the city are required to submit an individual income tax return and all non-residents who earn income in the city are required to submit a return.  

Business


Please select the type of business entity that is applying.

Corporation

Corporate Clearance Application

A corporation filing is a separate form from its owners (shareholders) in terms of income taxes.  A corporation pays income taxes by filing a corporate tax return and paying the taxes as indicated by the return.  All corporations must file an income tax return whether or not they have taxable income.

 

Partnership

Partnership Clearance Application

A Partnership files an information return to report their income, gains, losses, deductions, credits, etc. A partnership does not pay tax on its income but “passes through” any profits or losses to its partners. Partners of a business must include partnership items on their tax or information returns.

 

Sole Proprietor/Single Member LLC

Sole Proprietor/Single Member LLC Application

A sole proprietor/single member LLC filing is a business that legally has no separate existence from its owner.  Income and losses are taxed on the individual’s personal income tax return.  It’s an entity which is run and owned by one individual and where there is no distinction between the owner and the business.

 

Limited Liability Company (LLC)

LLC Clearance Application

A LLC filing is where the owner reports business income and losses on their personal tax returns.  A LLC has the pass-through taxation style of a partnership or sole proprietorship yet has the benefit of personal limited liability like a corporation.  

 

Nonprofit

Nonprofit Clearance Application

Nonprofit corporations are those formed in which members may not receive any profits of the corporation. Some purposes for which nonprofit corporations are commonly formed are those involving religious, educational and charitable activities.

 

Estate/Trusts

Estates & Trust income tax returns are the same as an individual or business would file but for a decedent’s estate or living trust after his/her death. The report reports income, capital gains, deductions, and losses, but subject to somewhat different rules than those that apply to living individuals. 

 

 

If you are applying on behalf of an individual, please use the Individual form above.  If you are applying on behalf of a corporation, please use the corporation form above.

 

If you have any additional questions please contact:

Clearance Unit 

(313) 224-1273 

[email protected]