Michigan
Michigan Tax Attorneys
The Michigan Department of the Treasury is the primary tax agency in the state and the treasurer is responsible for administering major tax laws within Michigan. In the end, the Internal Revenue Service (IRS), the federal agency handling federal taxes and administering federal tax law, is ultimately the governmental entity most people will be dealing with in most tax situations.
Any time that any person is dealing with any kind of tax issue, it becomes important for that person to be sure they are working with an experienced Michigan tax attorney. There are various reasons that tax issues arise and people are often powerless to explain why they are in the situations that they are in, but effective legal representation will make a world of difference in the outcomes to these cases.
Anderson Bradshaw delivers tax debt relief for people throughout the state of Michigan, and we know how overwhelming it can be for any person to find that they have some kind of tax problem. Some of the most common kinds of tax cases we handle include:
Offers in Compromise
An offer in compromise is a potential option for individuals who are unable to pay their tax debt in full. It allows them to propose a settlement amount that is less than the total amount owed.
The IRS evaluates various factors, including the person’s ability to pay, income, expenses, and asset equity, to determine whether to approve an offer in compromise. It is important to meet certain requirements, such as filing all required tax returns, making estimated payments, and not being involved in an open bankruptcy proceeding.
If the IRS cannot process an offer in compromise, they will return the application and offer application fees while applying any offer payments to the outstanding balance. Payment options may include lump sum cash payments or periodic payments.
Low-income individuals who meet certain certification guidelines may be exempt from application fees, initial payments, and monthly installments during the IRS review of the offer.
If an offer in compromise is rejected, individuals have the right to appeal within 30 days using the Request for Appeal of Offer in Compromise, Form 13711. The IRS Independent Office of Appeals can provide additional assistance in the appeals process.
It’s worth noting that the specific details and procedures regarding offers in compromise can be complex and may vary depending on individual circumstances. Seeking the guidance of a qualified tax professional or attorney can be beneficial when navigating the process and ensuring the best possible outcome for your specific tax situation.
Stopping Tax Levies & Liens
A tax lien is a legal claim by the government against a person’s property when they neglect or fail to pay their tax debts. The lien serves to protect the government’s interest in the property. In Michigan, the Michigan Department of Treasury can issue a Notice of State Tax Lien, which gives them a legal right or interest in the person’s property until the debt is satisfied.
Information on releasing liens can be found on the IRS website. The IRS is required to release levies under certain circumstances, such as when the person has paid the amount owed, the collection period has ended, releasing the levy will facilitate the payment of taxes, the person has entered into an Installment Agreement that does not allow for the levy to continue, the levy would create an economic hardship preventing the person from meeting basic living expenses, or the value of the property exceeds the amount owed and releasing the levy would not hinder the IRS’s ability to collect the debt.
If the IRS denies a request to release a lien, individuals have the right to appeal. It is advisable to seek legal counsel when dealing with any tax lien, as the process can be complex and having proper representation can help navigate the situation effectively.
Remember that specific procedures and requirements may vary depending on individual circumstances and jurisdiction. Consulting with a qualified tax attorney or professional can provide personalized guidance for your specific situation.
IRS Audit Defense
In Michigan, the Department of Treasury provides information and guidelines regarding tax audits. These audits are conducted to ensure compliance with tax laws, and the department outlines auditing standards, taxpayer rights, and the process for requesting reconsideration of Preliminary Audit Determinations (PADs) issued by the Treasury. It’s worth noting that while the Michigan Department of Treasury conducts tax audits, the Internal Revenue Service (IRS) is primarily responsible for federal tax audits.
IRS audits are often triggered when individuals fail to report all their income, claim excessive business deductions relative to their income, or have high annual earnings, among other factors. When someone receives an audit notice, it is common to also receive notices about penalties associated with the audit findings. In such situations, seeking legal assistance promptly is crucial.
IRS audits generally have a three-year look-back period, although exceptions may be made in cases involving significant errors. If you are facing an audit, it is advisable to consult with an experienced tax attorney who can provide guidance and representation throughout the process.
Anderson Bradshaw is a law firm that specializes in IRS tax debt relief and may be able to assist individuals in Michigan who are dealing with audits and related tax issues. It is recommended to reach out to them for personalized advice and support.
Unfiled Tax Returns
Under Public Act 122 of 1941 in Michigan, the Collection Services Bureau is tasked with collecting delinquent state tax accounts. They have various enforcement methods at their disposal, including liens, tax warrants, wage levies, offsetting refunds, and other means to collect outstanding tax debt.
In cases involving unfiled tax returns and IRS involvement, the IRS may impose federal failure-to-file penalties. These penalties can be significant, such as 5 percent of the net tax due per month or 0.5 percent for each month or part of a month that the tax remains unpaid, with a maximum penalty of 25 percent.
The IRS emphasizes the importance of immediately filing past due tax returns. By doing so, individuals can avoid incurring further interest and penalties. Filing tax returns promptly also helps protect Social Security benefits, prevents complications when obtaining loans, and reduces the likelihood of collection and enforcement actions by the IRS.
It is recommended to comply with tax filing obligations and seek professional assistance from a tax attorney or tax professional to navigate any tax-related issues effectively.
Innocent Spouses
If an affected couple files a joint tax return and is still married and living together in the same household, they may be eligible for innocent spouse relief. This relief option allows a person to avoid additional tax liability when their spouse understated taxes on their joint tax return, and the individual claiming innocent spouse relief was unaware of the mistake.
Underreporting taxes is attributed to only one spouse, and this attribution must be documented in an audit report. The filing spouse must demonstrate that they had no actual or constructive knowledge of the understatement and that it would be unfair to hold them responsible for the tax debt.
It is crucial to seek innocent spouse relief within two years of an IRS collection action. However, it is important to note that obtaining innocent spouse relief can be a complex process. Therefore, it is highly advisable to seek the assistance of an experienced tax attorney who can provide guidance and representation throughout the claim process.
Contact Our Michigan Tax Attorneys
If you are facing a tax issue that is causing significant challenges, it is crucial to seek professional assistance to navigate through the complexities of tax laws and regulations. Anderson Bradshaw, with over 30 years of experience in handling tax cases across the United States, can provide the expertise and guidance you need.
With their extensive knowledge and understanding of tax matters, Anderson Bradshaw can help you find effective solutions and relief from your tax problems. Whether you are dealing with tax debt, audits, liens, or other tax-related issues, having an experienced tax attorney on your side can make a significant difference in the outcome of your case.
Don’t hesitate to reach out to Anderson Bradshaw to discuss your tax situation and explore the options available to you. They can provide the necessary support and representation to help you overcome your tax challenges.
Our tax attorneys provide IRS tax help for residents all over Michigan including Detroit, Grand Rapids, Warren, Sterling Heights, Ann Arbor, Lansing, Dearborn, Clinton, Canton, Livonia, and more. Call (877) 986-1156 or contact our Michigan tax attorney online to set up a free consultation.
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