Income Tax Clearance FAQs

An approved Income Tax Clearance states that an individuals, businesses or subcontractors  seeking seeking employment or contracts with the City of Detroit has complied with all the provision of the City Income Tax Ordinance. Contractors (Individuals, businesses or subcontractors) cannot be awarded a contract and are not authorized to perform services until they are in compliance with the City Income Tax Ordinance. The "Request for Income Tax Clearance" form should be submitted 30 days prior to submission for new bids or renewals of contraction extensions. Please e-mail your completed request form (preferably in pdf format) to : 

INCOME TAX CLEARANCE

When requesting an Income Tax Clearance, complete the form
carefully to avoid processing delays. We must have the full name of the individual or business, the complete address, including zip code and telephone number. Clearances without social security numbers or federal identification numbers CANNOT be processed, they will be denied. Individuals married or previously married who filed joint returns must include spouse's social security number. If business is a sole proprietorship, the owner's social security number must be provided.

Businesses must file Corporation D-1120 or Partnership D-1065 returns, regardless of net profit or loss. Non-profit organizations are required to file D-1120 tax return based on non-related income. All employers located in the City or "doing business within the City" must withhold City of Detroit income taxes from employees compensation. Employers subject to withholding tax must file monthly or quarterly forms D-941/501, as well as, form DW-3 Annual Reconciliation with W2's.  All assessments must be paid. New employers must request an Employer's Package and register with the City by completing and submitting an Employer's Withholding Registration form DSS-4. contractors must Supply a list of subcontractors with federal identification numbers or social security numbers. Contractors must also supply the federal identification numbers used for their leased employees.

Individuals must file returns and pay income taxes, and not have any unpaid assessments. Detroit residents must file Form D-104(R). If a taxpayer claims a non-resident status, proof will be required (copy of lease, mortgage closing statements, drivers license, voter's registration, ect.) If an individual seeking a tax clearance reside within the City, but claimed dependent status on another person's tax return, or received assistance, proof my be required.

Income Tax Clearances denied based of one or more of the following reasons: (1)Missing withholding payments, DW-3 Annual Reconciliation with W2's, (2) Unpaid assessments and (3) Missing tax returns and related data regarding taxpayers are confidential : therefore,reasons for denial are given only to the taxpayer or authorized representative with power of attorney.

Taxpayers denied clearance  may visit our office to obtain information about their account or to drop off requested information.

Appointments are not necessary. For additional information contact the Clearance Section at (313) 224-3328. Our office is located in the Coleman A. Young Municipal Center,2 Woodward Ave, Suite 130. Office hours are 8:00 AM - 4:00 PM, Monday through Friday