26-000665 SNF Holdings Answer.pdf
Snf Holdings LLC / Dba Vios Compounding Pharmacy Petitioner Vs. Michigan Department Of Treasury Respondent · 26-000665-TT
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ANSWER/MOTION TO TRANSFER SNF Holdings LLC dba Vios Compounding Pharmacy v Treasury MTT Docket No. 26-000665 Corporate Income Tax Act, MCL 206.601 et seq. Rejection of tentative claim for research and development credit, 2025 Filing The Tax Policy Division, Michigan Department of Treasury, submits this answer in response to a petition filed with the Small Claims Division of the Michigan Tax Tribunal by SNF Holdings LLC. A copy of this answer has been served concurrently on Petitioner. Petition Petitioner is appealing the rejection of its tentative claim for the research and development (R&D) credit under MCL 206.677. As Petitioner admits in the petition, Petitioner filed the tentative claim after the statutory deadline. The deadline was April 1, 2026. MCL 206.677(3). Petitioner filed its tentative claim on April 8, 2026. Exhibit A. Background Under MCL 206.677(1), a taxpayer can claim a credit for a portion of their R&D expenses incurred during the calendar year ending within the tax year. To claim the credit for expenses incurred in calendar year 2025, the taxpayer first “must submit . . . a tentative claim . . . to the department on or before April 1, 2026.” MCL 206.677(3). The credit is subject to an aggregate annual cap. MCL 206.677(5). Treasury is required to review all tentative claims and, if the total value of those claims exceeds the annual cap, to prorate the credit each taxpayer can claim on their annual return. MCL 206.677(4), (5). Treasury must publish the proration rate on its website. MCL 206.677(4). In this case, Petitioner emailed Treas_Tax_Policy@michigan.gov on April 8, 2026, seven days after the deadline for filing a tentative claim, attaching a copy of a document entitled R&D Tax Credit Study. Exhibit A at 5-6. The next day, April 9, 2026, Treasury responded to the email, asking for confirmation that the document was intended as a tentative claim for the R&D credit. Id. at 2. Petitioner responded to the email the same day, stating that the document was intended as a tentative claim for the credit. Id. at 1. Treasury sent Petitioner a letter dated April 20, 2026, stating that Petitioner’s tentative claim was rejected because it was filed after the deadline of April 1, 2026. Exhibit B. On April 24, 2026, Treasury published the required proration notice, having completed the required review of tentative claims for the year and concluded that proration was required. https://www.michigan.gov/treasury/reference/taxpayer- notices/2026/04/24/research-and-development-credit-proration-notice-for-credits-based- on-2025-expenses. 001
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Respondent’s Answer 1. The petition should be dismissed because Petitioner has not stated a claim on which relief can be granted. Treasury requests that the Tribunal dismiss the petition because Petitioner has not stated a claim on which relief can be granted. Petitioner is asking the Tribunal to set aside the deadline set by MCL 206.677(3). The Tribunal does not have the authority to set aside a statutory deadline because the Tribunal does not have the authority to grant equitable relief. Marie De Lamielleure Trust v Treasury, 305 Mich App 282, 288 (2014). In De Lamielleure, the Court of Appeals held that, because the Tribunal lacked equitable authority, it could not stop Treasury from assessing statutorily required property taxes, even though Treasury had erroneously failed to assess the taxes previously. 305 Mich App at 287-288. Similarly, here, the Tribunal does not have the equitable authority to require Treasury to disregard the statutorily required deadline for tentative R&D claims. Even if the Tribunal had equitable authority, it could not use it to override an unambiguous statutory requirement such as the deadline here. See Stokes v Millen Roofing, 466 Mich 660, 671-672 (2002) (“Regardless of how unjust the statutory penalty might seem to this Court, it is not our place to create an equitable remedy for a hardship created by an unambiguous, validly enacted legislative decree” (internal quotations omitted).). The statutory deadline at issue here is key in effectuating the proration requirement for the R&D credit; without the deadline, neither Treasury nor taxpayers would have finality as to the prorated amount of credit a taxpayer was entitled to claim. 2. Alternatively, the case should be transferred to the entire Tribunal. If the Tribunal does not dismiss the petition, Treasury requests that the Tribunal transfer the case from the Small Claims Division to the entire Tribunal. Treasury requests that the Tribunal consider this portion of Treasury’s answer to be a motion to transfer under Rule 792.10275, which allows any party to request a transfer from the Small Claims Division to the entire Tribunal. The Small Claims Division does not have jurisdiction over this case. Petitioner is claiming $44,452.00, which exceeds the monetary threshold for Small Claims jurisdiction. In non-property tax cases such as this one, Small Claims jurisdiction is limited to amounts in dispute up to $20,000, adjusted for inflation. Mich Admin Code R 792.10265; MCL 205.762(1). For 2026, the maximum amount in dispute for a Small Claims case is $31,162.00. Because Petitioner is claiming more than this amount, the Small Claims Division does not have jurisdiction, and the case should be transferred to the entire Tribunal. 002
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Relief Requested Treasury requests that the Tribunal dismiss the petition. In the alternative, Treasury requests that the Tribunal transfer this case from the Small Claims Division to the entire tribunal. /s/ David Foos 7/30/2026 David Foos, Administrator Michigan Department of Treasury Bureau of Tax Policy Direct Taxes Division 003
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From: Sammy Salem <sammy.salem@vioscompounding.com > Sent: Thursday, April 9, 2026 10:49 AM To: Foos, David (TREASURY) <FoosD@michigan.gov >; belal@omnextax.com Subject: Re: R & D Credit for Vios Compounding CAUTION: This is an External email. Please report suspicious emails via the "Report to Abuse " button in Outlook Hi David, Yes, that is correct. We attempted to submit the report on April 1st but ran into a technical problem. We unfortunately thought if we waited for the following day that it would be accepted and we were obviously incorrect. We are hoping the department can work with us in accepting the data and filing. Sammy Salem, PharmD COO Confidentiality Notice: This email communication, including all attachments, is for the sole use of the intended recipient(s) and may contain confidential and privileged information. Any unauthorized review, use, disclosure or distribution is prohibited and may be unlawful. If you are not an intended recipient, please contact the sender by reply email and destroy all copies of the original message and attachments. Please note that this email and attachments may be copyright EXHIBIT A 004
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You don't often get email from foosd@michigan.gov . Learn why this is important From: Foos, David (TREASURY) <FoosD@michigan.gov > Sent: Thursday, April 9, 2026 10:13 AM To: belal@omnextax.com <belal@omnextax.com > Cc: Sammy Salem <sammy.salem@vioscompounding.com > Subject: FW: R & D Credit for Vios Compounding The attached report has been received by the Bureau of Tax Policy. Because this includes information about the R &D credit calculation, can you please confirm whether this report is intended to serve as the “tentative claim” that must be timely submitted to Treasury in accordance with MCL 206.677(3) and as detailed within RAB 2026- 4 ? Thanks. David David Foos Division Administrator Direct Tax Division Bureau of Tax Policy Michigan Department of Treasury Phone: 517-241-3276 From: Belal Majed <belal@omnextax.com > Sent: Wednesday, April 8, 2026 6:39 PM To: Treas_Tax_Policy <Treas_Tax_Policy@michigan.gov > Cc: Sammy Salem <sammy.salem@vioscompounding.com > Subject: R & D Credit for Vios Compounding CAUTION: This is an External email. Please report suspicious emails via the "Report to Abuse " button in EXHIBIT A 005
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Outlook Hello, Please find attached the R & D tax stud. The Michigan calculation is on the last page. Thank you Best Regards, Belal Majed Managing Partner OMNEX Accounting & Tax Services, Inc Innovative Payroll Processing, Inc Michigan 12740 W. Warren Ave. Suite 200 Dearborn, MI 48126 Arizona Office 4645 N 32 nd St Suite A-220 Phoenix, AZ 85018 313-846-3322 Phone 313-846-4446 Fax http://www.omnextax.com EXHIBIT A 006
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IRS Circular 230 Disclosure: As required by U.S. Treasury Regulations, you are hereby advised that any written tax advice contained in this answer was not written or intended to be used (and cannot be used) by any taxpayer for the purpose of avoiding penalties that may be imposed under the U.S. Internal Revenue Code. CONFIDENTIALITY DISCLOSURE : This electronic mail message and any attached files contain information intended for the exclusive use of the individual or business to whom it is addressed and may contain information that is proprietary, privileged, confidential and/or exempt from disclosure under applicable law. If you are not an intended recipient, you are hereby notified that any viewing, copying, disclosure or distribution of this information may be subject to legal restriction or sanction. Please notify the sender, by electronic mail, of any unintended recipients. EXHIBIT A 007
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430 WEST ALLEGAN STREET • LANSING, MICHIGAN 48922 www.michigan.gov/treasury • 517-335-7508 GRETCHEN WHITMER GOVERNOR STATE OF MICHIGAN DEPARTMENT OF TREASURY LANSING RACHAEL EUBANKS STATE TREASURER April 20, 2026 Sammy Salem, COO SNF Holdings, LLC d/b/a Vios Compounding 31035 Schoolcraft Road Livonia, MI 48150 Re: Rejection of Michigan Research and Development Credit Tentative Claim Submission Dear Mr. Salem: This letter is in response to the April 8, 2026 email submission of a Michigan research and development credit tentative claim by Belal Majed on behalf of SNF Holdings, LLC d/b/a Vios Compounding (“Taxpayer”). As provided in MCL 206.677(3) and MCL 206.717(3), and as described in RAB 2026-4, to be eligible for a Michigan research and development credit for qualified research and development expenses incurred in 2025, claimants had to submit their tentative claims by April 1, 2026. Because Taxpayer submitted its tentative claim after this deadline, its claim has been rejected. If you disagree with this decision, you may file your written appeal as follows: 1. Within 60 days, to the Michigan Tax Tribunal. See www.michigan.gov/taxtrib for information, including the required Petition and filing fee. 2. Within 90 days, to the Michigan Court of Claims. See courts.michigan.gov/courts/court-of- claims for information, including the required Summons and Complaint and filing fee. Sincerely, /s/ David Matelski David Matelski Director, Bureau of Tax Policy CC: Belal Majed 72 (Rev. 03-19) EXHIBIT B 008