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Michigan Tax Law Questions & Answers
0 Answers | Asked in Tax Law, Business Law and Contracts for Michigan on
Q: Can our 501C7 club lease kitchen for public dining without tax issues?

Our private club has a 501C7 tax designation and previously employed its own kitchen staff for private dining. Due to financial constraints from a decline in membership, we can no longer maintain the kitchen staff. A local restaurant has offered to lease our kitchen for public dining while the rest... View More

0 Answers | Asked in Business Law, Tax Law and Gov & Administrative Law for Michigan on
Q: Do I need a license to invest in tax liens for others in Michigan?

As a financial advisor, I'm looking to invest in tax liens on behalf of individuals and churches. Do I need any specific licenses to carry out such investments in Michigan, and are there any federal regulations I should be aware of?

1 Answer | Asked in Probate, Real Estate Law and Tax Law for Michigan on
Q: Transfer property ownership from nephew before probate in MI?

I am concerned about a property in Ironwood, MI, that is scheduled to go up for tax auction on Monday at 5:00 PM for $3,700. There is no will, and my nephew is the only relative. Can I take ownership from my nephew before the probate process is completed to prevent the auction?

Kenneth V Zichi
Kenneth V Zichi
answered on Mar 29, 2025

Your nephew cannot transfer ownership of something he does not yet own.

So the short answer is 'no' ....

But there may be other options. Talk with a licensed local real estate/probate attorney to determine what can be done.

Good luck

2 Answers | Asked in Real Estate Law, Probate and Tax Law for Michigan on
Q: Can I acquire a Michigan property for back taxes before probate?

I'm interested in acquiring a property as a third party due to $3,700 in unpaid back taxes. The property owner recently passed away, and the owner's nephew has until Monday evening to pay the back taxes. The property is not yet listed for a tax sale or auction. I would like to know if I... View More

Kenneth V Zichi
Kenneth V Zichi
answered on Mar 29, 2025

'Control' is such a non-specific word.

Can you PAY the back taxes to the County/State before then? Yes, but the Estate will retain the right to redeem meaning you won't get the property, you'll only get your money (plus interest) back.

Can you BUY the property...
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1 Answer | Asked in Probate and Tax Law for Michigan on
Q: Do I need to post a notice to creditors if no probate and no assets left?

When my mom passed away, her assets, including her home with a lady bird deed, automatically transferred to me and my brothers, and we're not going through probate. However, she may have owed a debt to the IRS, and there are no remaining assets to pay that debt. Do I still need to post a... View More

Kenneth V Zichi
Kenneth V Zichi
answered on Mar 27, 2025

MUST you do so? No.

But it is still a good idea because it effectively reduces any statute of limitations to the ‘non-probate claims period’ which is drastically shorter than the general limits.

The wording is slightly different than the ‘probate’ notice but similar. I’d...
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0 Answers | Asked in Divorce, Tax Law, Criminal Law and Consumer Law for Michigan on
Q: Ex accessed tax refund after divorce; steps to recover funds?

My ex-husband and I finalized our divorce in December 2024. I filed a single tax return in January, but my tax refund of over $1,800 was accessed by him through an emerald card linked to our previous joint account. The card company denies it as fraud, and I'm awaiting a decision from the... View More

1 Answer | Asked in Probate, Bankruptcy, Tax Law and Agricultural Law for Michigan on
Q: Estate tied up in Michigan due to executor and attorney issues.

My father's estate has been tied up in legal proceedings for 2 years because the opposing attorney frequently cancels court dates without valid reasons. Additionally, my own attorney is unresponsive to calls and emails. The delay is largely due to disputes over IRS checks and farming... View More

James L. Arrasmith
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answered on Apr 1, 2025

You have multiple concerning issues occurring simultaneously with your father's estate. Given the unresponsiveness of your current attorney and the difficulty in securing new representation, you might consider filing a complaint with the Michigan Attorney Grievance Commission regarding your... View More

2 Answers | Asked in Collections and Tax Law for Michigan on
Q: Can they garnish my federal refund for an 8-year-old car repossession?

I have a garnishment filed every year for a car repossession from 8 years ago, and my state refund is garnished and sent to the attorney. I have no agreement or contact with them, and this year is my first time able to get a federal tax refund. Can they also take my federal refund?

Robert Keyes
Robert Keyes
answered on Feb 25, 2025

No to Federal Refund. There is also no reason to file MI state taxes if you are going to get a refund. They is no penalty unless you owe and file late.

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2 Answers | Asked in Bankruptcy and Tax Law for Michigan on
Q: Can I file for Chapter 7 bankruptcy with income discrepancies from OnlyFans?

I am considering filing for Chapter 7 bankruptcy due to a garnishment related to an eight-year-old car repossession, with a remaining balance of $13,000. The creditor takes my tax refund annually, including $3,400 this year. I haven't sought professional advice yet. My concern is a discrepancy... View More

Michael Hollins Sr.
Michael Hollins Sr.
answered on Feb 21, 2025

Dealing with garnishments and old debts is stressful. Chapter 7 bankruptcy might be an option, but the income difference between your 1099 and bank statements needs careful attention. Courts require accurate financial records.

Since you haven't consulted a lawyer, a free consultation...
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1 Answer | Asked in Collections and Tax Law for Michigan on
Q: How can I stop my tax refund garnishment from a car repossession?

I have had a court-mandated garnishment for 9 years due to a car repossession. Each year, about $3,000 is taken from my tax refund. I have not been employed recently and haven't been able to communicate with the debt collectors. The original debt was $22,000, and my current balance is $13,000.... View More

Robert Keyes
Robert Keyes
answered on Feb 20, 2025

First thing. I assume these are Michigan refunds. If so stop filing. The state doesn’t care if you file when you expect a refund.

Why are you reluctant to file bankruptcy?

1 Answer | Asked in Tax Law for Michigan on
Q: Do I have to disclose spouse wages to Michigan collections

My tax liability is from before I married my current spouse which was for Sales, Use, and Withholding from a failed business, and I don't want the collections department to have any of her information. I am currently trying to continue a bi weekly payment arrangement, and they are requesting... View More

James L. Arrasmith
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answered on Jan 28, 2025

You are not required to disclose your spouse’s wages to Michigan collections if the tax liability is solely yours and occurred before your marriage. Your spouse’s income is generally not considered part of your obligation unless they are somehow legally tied to the liability, such as through... View More

1 Answer | Asked in Tax Law for Michigan on
Q: Can California Board of Equalization place a lien on my Michigan home for non-payment of back taxes?

I have lived in Michigan for 15 years. Prior to that I was a resident of Calif. . I bought cigarettes from out of state and the Calif tax department charged me with all back sales taxes I didn't pay. I have made small monthly payments for years. Now they want big payments that I can't... View More

James L. Arrasmith
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answered on Jan 12, 2025

If you owe back taxes to California but now live in Michigan, the California Board of Equalization typically cannot directly place a lien on your Michigan home. Their enforcement powers are generally limited to assets and income within California.

However, California may take steps to...
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2 Answers | Asked in Tax Law for Michigan on
Q: How is the 16th Amendment constitutional? It is front end taxing, and back end taxing on a person and too broad.

Income - a gain or recurrent benefit usually measured in money that derives from capital or labor. Capital - net worth : excess of assets over liabilities. Labor - the services performed by workers for wages as distinguished from those rendered by entrepreneurs for profits. I am being taxed on the... View More

Brent T. Geers
Brent T. Geers
answered on Nov 18, 2024

Your concerns raise more of a political question than a legal one. And I think you are misunderstanding the relationship between the 16th Amendment and Article I.

Similar arguments and concerns have been litigated since the 16th Amendment was ratified in 1913. Congress's ability to...
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1 Answer | Asked in Employment Discrimination, Employment Law and Tax Law for Michigan on
Q: I was told because they pay cash im a 1099 cash employee. Got fired for wanting to pay my taxes Longer question no spac

I had no contact with this business. I have proof of hiring through text. A voicemail from the owner. I have pictures of their pay sheet showing I was working there.

James L. Arrasmith
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answered on Oct 25, 2024

It sounds like you have a solid collection of evidence supporting your work history. Start by organizing all your documentation, including texts, voicemails, and pay sheets. This will be crucial when presenting your case to the appropriate authorities.

Next, consider reaching out to the IRS...
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2 Answers | Asked in Tax Law and Probate for Michigan on
Q: Can distributions from estate to beneficiaries be withheld if they won't provide SS# number for K-1 Rental Income?
Anthony M. Avery
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answered on Oct 1, 2024

No, those are two separate legal obligations. Trustee can be sued for breach of fiduciary duties and conversion for failure to distribute from Trust. But Trustee can (must) report income being transmitted to Beneficiaries, and the IRS will prosecute them if income is not reported.

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1 Answer | Asked in Consumer Law, Tax Law and Banking for Michigan on
Q: Unauthorized funds removed from bank account by Treasury Dept.

I had $1400 taken out of my bank account without notice. The bank refused to investigate but said it was from the IRS. So I call them and it was not by them. Eventually I sued the bank. Today during mediation I discover it was really the Department of Treasury that did it and by a person I know. I... View More

James L. Arrasmith
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answered on Sep 21, 2024

It sounds like you're in a complicated situation. Since the funds were taken by the Department of Treasury and linked to someone you know, this may have turned into a matter of fraud involving that individual. However, your agreement with him and the circumstances surrounding the withdrawal... View More

1 Answer | Asked in Tax Law, Business Law and Gaming for Michigan on
Q: Are crane machine owners in Michigan required to pay amusement taxes? Do owners need to obtain a sales tax license?

Because crane machines are legally considered amusement devices, I’m not sure if crane machine owners need to pay amusement tax or if they even need to obtain a sales tax license. I assume that taxes for sales made on each play of the machine would count as a service sales tax, but I am not sure.

James L. Arrasmith
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answered on Sep 15, 2024

In Michigan, crane machines, like other amusement devices, are subject to specific regulations regarding taxation. As an owner, you are generally not required to pay an amusement tax specifically for the operation of crane machines. However, any income generated from the use of these machines is... View More

1 Answer | Asked in Business Law, Landlord - Tenant and Tax Law for Michigan on
Q: Do I need to start a business to collect rent on a residential property I own?

The property is in Georgia and I reside in Michigan.

James L. Arrasmith
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answered on Sep 14, 2024

You do not need to start a business to collect rent on a residential property you own. As an individual, you can rent out your property and report the rental income on your personal tax return. However, there are some benefits to forming a business entity, like an LLC, for rental properties, such... View More

1 Answer | Asked in Tax Law for Michigan on
Q: we aquired land from a lady bird trust and bought out other two parties are we still entitled to the tax amount from the

the michigan tax code for property handed down to children

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answered on Aug 16, 2024

If you acquired land from a Lady Bird trust and bought out the interests of other parties, the tax treatment for that property depends on several factors. Michigan law allows for the uncapping of taxable value when property is transferred, but there are exemptions, such as transfers to children.... View More

1 Answer | Asked in Business Formation, Business Law and Tax Law for Michigan on
Q: Can a business partner that was given POA by their partner for business purposes sell/give ownership rights away?

My husband and a friend opened a food truck/restaurant. My husband had some medical issues and gave the friend POA to sign business documents for them as they were in the middle of trying to purchase a building. My husband left the company (day to day operations) but signed nothing giving away... View More

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answered on Aug 5, 2024

No, a business partner with a Power of Attorney (POA) cannot unilaterally sell or give away ownership rights without explicit consent from the other partner. The POA typically allows the partner to sign documents and make decisions on behalf of the business but does not grant the authority to alter... View More

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