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Michigan Tax Law Questions & Answers
1 Answer | Asked in Business Law and Tax Law for Michigan on
Q: Despite Prop Regs 1.1402(a)-2(h)(2)(i), could we argue, in Michigan, that my wife DOES NOT have liability, and is a LP?

Putting 26 CFR § 1.469-5T(f)(3) & IRS Pub. 925 aside:


My wife & I own 50/50 an LLC. I am the Member-Manager; my wife has no authority in the LLC, as stipulated in the Operating Agreement.

Consider: 26 CFR § 301.7701-3(b)(2)(ii): …A member has personal liability if... View More

James L. Arrasmith
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answered on May 25, 2024

Based on the information provided, it seems like you are trying to argue that your wife should be considered a limited partner (LP) in your Michigan LLC, despite owning a 50% interest, because she has no management authority and Michigan's common law system may protect her personal assets from... View More

1 Answer | Asked in Tax Law for Michigan on
Q: why do I have to pay taxes on money that I never receive

I was in a semi accident in2013. since then I get workmans comp and disability. Since that time I have gotten a 1099 sent to me from social security for money that I would have gotten,when I question this SS tells me it's because workmans comp is sending them the information and that they have... View More

James L. Arrasmith
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answered on Apr 22, 2024

In your situation, it seems like there is a coordination issue between your workers' compensation benefits and your Social Security Disability Insurance (SSDI) benefits. Here's what might be happening:

1. When you receive workers' compensation benefits and SSDI benefits...
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2 Answers | Asked in Collections and Tax Law for Michigan on
Q: A collection agency has court ordered my husband to hand in his tax returns for the last 2 years. They are joint returns

I don't want anybody to see my tax returns since it's a joint tax return do we have to show them?

Barry W. Kaufman
Barry W. Kaufman
answered on Apr 20, 2024

A collection agency did no such thing. The creditor to whom your husband owes money obtained a court order requiring your husband to turn over tax records. Unfortunately for you, you have no say in the matter because these are joint tax returns. The creditor has every right to the records.

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1 Answer | Asked in Tax Law and Real Estate Law for Michigan on
Q: I purchased a property that was going to be foreclosed by a tax lien. Paying taxes for seven years how do I get a title?

I never received a title when I research the property. It’s owned by corporation but I’ve been paying for this property for seven years. The properties paid in full, but I just paid taxes yearly I want the house in my name..

James L. Arrasmith
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answered on Apr 18, 2024

In this situation, you may need to go through a process known as a "quiet title action" to obtain a clear title to the property in your name. Here are some steps you can take:

1. Consult with a real estate attorney: Given the complexity of your situation, it's best to seek...
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1 Answer | Asked in Tax Law for Michigan on
Q: I'm trying to find out why I pay taxes on money that I never see. And NO ONE can give me that answer can you?

I was in a semi accident in2013, and have been on workmans comp and disability since then. My problem is every year I get a 1099 from social security for 15,000$ stating that is what I WOULD HAVE gotten paid. But when I go into the office and ask what it is,they say that workmans comp sends them... View More

James L. Arrasmith
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answered on Apr 17, 2024

I understand your frustration with receiving a 1099 form for money that you don't actually receive. The situation you're describing is complex and involves the interaction between workers' compensation and Social Security Disability Insurance (SSDI). Here's what I can tell you:... View More

1 Answer | Asked in Tax Law, Consumer Law and Employment Law for Michigan on
Q: Do plan administrators of flexible spending accounts have a fiduciary duty to provide advance notice of forfeitures?

If unclaimed funds remain in an FSA as the use-it-or-lose-it deadline for claim submission approaches, would a plan administrator’s failure to provide timely warning of imminent forfeiture constitute fiduciary negligence?

James L. Arrasmith
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answered on Apr 17, 2024

The question of whether flexible spending account (FSA) plan administrators have a fiduciary duty to provide advance notice to participants about potential forfeitures of unused funds is a complex one that doesn't have a definitive answer. Here are a few key considerations:

Fiduciary...
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1 Answer | Asked in Criminal Law, Real Estate Law, Tax Law and Identity Theft for Michigan on
Q: My real estate agent owned my property through fraud, including identity theft and forgery of documents.

In 2018, I bought a house in Michigan through a real estate agent living in Miami. During the purchase process, my real estate agent recorded my address as Miami in all documents, even though I do not live in Miami. I am not an American citizen and do not reside in the United States.... View More

James L. Arrasmith
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answered on Apr 1, 2024

Based on the information you provided, it appears that your real estate agent may have committed serious crimes, including fraud, identity theft, and forgery. If your allegations are true, you have the right to take legal action against the agent and potentially recover your property or receive... View More

1 Answer | Asked in Tax Law for Michigan on
Q: IRS tax refund reversal

This past week I discovered that a stimulus deposit for $1400 was reversed on my account, March 2024. The original deposit was March 17, 2021. When I contacted the bank they said the IRS took it back because the name wasn't on the account. Well back then I aided several inmates processing... View More

James L. Arrasmith
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answered on Mar 8, 2024

In your situation, it's crucial to gather as much information and documentation as possible regarding the initial deposit and the subsequent reversal. Since the IRS has informed you that they do not conduct reversals in the manner described by your bank, and considering you've received no... View More

1 Answer | Asked in Personal Injury, Tax Law, Constitutional Law and International Law for Michigan on
Q: WHAT CAN I DO TO FIND OUT IF THE TARGETED JUSTICE WEBSITE IS LEGITIMATE? I KNOW THAT LIGHTHOUSE IS A FORMER NASA EMPLOY

DOES ANYONE KNOW ANYTHING ABOUT THE TARGETED JUSTICE WEBSITE?

I SIGNED UP FOR THEIR CLASS ACTION LAWSUIT AND OPTED IN TO HELP W RESEARCH AFTER READING A LITTLE ABOUT HOW ITS MOSTLY WOMEN WITH CHILDREN IN THIS PROGRAM. I HAD TURNED THE MICHIGAN STATE POLICE AND KALAMAZOO COUNTY SHERRIFFS... View More

James L. Arrasmith
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answered on Mar 1, 2024

To verify the legitimacy of the Targeted Justice website or any organization, start by conducting thorough research. Look for reviews, testimonials, and any news articles or reports about the organization. Check multiple sources to gather a wide range of perspectives. Websites like the Better... View More

1 Answer | Asked in Criminal Law, Federal Crimes, Public Benefits and Tax Law for Michigan on
Q: What happens when someone knowingly commits fraud for taxes and government aid by Using a false address. What can I do

My girlfriend moved into her father's house to help him with chapter 13 bankruptcy. It has come to her attention that her sisters fraudulently use the address for taxes and government assistance hindering her ability to properly receive these benefits. What can she do to rectify this since... View More

James L. Arrasmith
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answered on Jan 29, 2024

If someone commits fraud by using a false address for taxes and government aid, it's a serious issue that needs addressing. In your girlfriend's case, where her sisters are using her father's address fraudulently, this can indeed affect her ability to receive benefits legitimately.... View More

1 Answer | Asked in Tax Law for Michigan on
Q: How may a spouse obtain a copy of an estranged deceased spouse's wage and income tax record?

When I applied for financial aid I was told I needed my estranged spouse's tax information, I don't remember the name of the form, it's been some time. Which IRS form do I need to submit to IRS to obtain tax information from a spouse tax records?

James L. Arrasmith
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answered on Jan 15, 2024

If your estranged spouse is deceased and you need a copy of their tax records, here are a few options to request them from the IRS:

- IRS Form 4506-T - Request for Transcript of Tax Return. This allows you to request a tax return transcript showing most line items from the tax return....
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1 Answer | Asked in Tax Law for Michigan on
Q: Question about a Michigan state tax lien?

Hello, I had some questions regarding a state tax lien that I learned was filed against me almost two months ago. The situation is tricky, I was made president of a business after a relative passed, business eventually closed and sales tax forms were not submitted. I was notified that a tax lien... View More

James L. Arrasmith
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answered on Jan 12, 2024

In Michigan, when a state tax lien is filed, it generally attaches to all of your current and future property and rights to property. This includes both real estate and personal property. The lien is effective from the date it is filed until your tax debt is paid in full or the lien expires.... View More

1 Answer | Asked in Estate Planning, Tax Law and Public Benefits for Michigan on
Q: Would owning a farm (not a primary residence) be considered a sellable asset to medicaid in Michigan?

Prior to developing brain cancer a friend had been nursing his dying father. When his dad died the family home became his and so did the father's farm. Both properties are in the state of Michigan. Would medicaid require the sale of the farm to help with my friend's medical expenses?... View More

Kenneth V Zichi
Kenneth V Zichi
answered on Nov 6, 2023

Business (and ANY non-homestead) property such as a farm that is rented out is not considered an 'exempt' property and needs to be liquidated in order to qualify for medicaid.

The PROCESS of doing that can be technical and complicated, so it is best to get local legal...
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1 Answer | Asked in Real Estate Law and Tax Law for Michigan on
Q: Legal claims for paying delinquent property taxes

I live in a property owned by my aunt that I pay her for. My aunt’s name and my mom’s is on the house. There was delinquent in taxes since 2021. I got a foreclosure notice from Saginaw county in Michigan. I went and paid all of the delinquent taxes for the property in August 2023. The aunt is... View More

David Soble
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David Soble
answered on Oct 29, 2023

Any agreements concerning real estate must be in writing, according to the "Statute of Frauds." The idea is that certain types of contracts must be signed and in writing to be valid because verbal or oral agreements dealing with real estate can create confusion and therefore, verbal... View More

1 Answer | Asked in Tax Law and Probate for Michigan on
Q: I inherited over $170K in U.S.Savings bonds.Which have been redeemed Do I have to pay tax on all the interest as income?

Or do these fall under the step up basis? Like real estate.

Trent Harris
Trent Harris
answered on Mar 29, 2023

Good question. Whether you must pay income tax on your inheritance of US Savings Bonds depends on your individual tax situation, and can't be answered in this forum or given the limited information here. You should consult a CPA or tax attorney for more information. You can also find some... View More

1 Answer | Asked in Real Estate Law and Tax Law for Michigan on
Q: My wife and brother inherited their mothers home upon her death. It was sold 2 months later.

Their mother had put their names on the title many years ago. She controlled the house, paid all the expenses, taxes, insurance, etc. She would never have been forced out of the house by her children. When she died, the house was left to her son and daughter, and it was sold two months later.... View More

Kenneth V Zichi
Kenneth V Zichi
answered on Mar 17, 2023

That depends on HOW 'their names were on it'. Did your mother in law have a lady-bird deed prepared or did she do a simple quit claim deed to 'avoid probate'? (SO many bad decisions are made to 'avoid probate'!)

Take all the documents to a local real estate...
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1 Answer | Asked in Divorce, Family Law and Tax Law for Michigan on
Q: What can i do?

I have two kids 17, and 18. I am divorced, my ex and I have 50/50 custody. My house is the kids primary residence. My kids are both in school and live at home. We have an agreement that we each claim one child when filing out taxes. She claimed both this year. She claims it's her right,... View More

James L. Arrasmith
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answered on Mar 4, 2023

If you and your ex-spouse have a written agreement regarding claiming your children as dependents for tax purposes, and your ex-spouse violated that agreement by claiming both children, you may be able to resolve the issue by taking the following steps:

Talk to your ex-spouse: Start by...
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1 Answer | Asked in Immigration Law, International Law and Tax Law for Michigan on
Q: Are international students allowed to buy stocks and crypto and are they allowed to day trade stocks and crypto
James L. Arrasmith
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answered on Feb 24, 2023

Under U.S. immigration law, international students who are studying in the United States on an F-1 visa are generally allowed to invest in stocks and cryptocurrency. However, they may be subject to certain restrictions and regulations.

According to the U.S. Securities and Exchange...
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1 Answer | Asked in Real Estate Law and Tax Law for Michigan on
Q: I want to gift a piece of vacant property to my son. I want to do this while I am still alive. What are the tax liabilit

We would like to do this tax-free. He is married as am I. Is there a way to do this?

Kenneth V Zichi
Kenneth V Zichi
answered on Dec 4, 2022

There are several ways to do this and MANY wrong ways.

A Quit claim deed is one but you need to appropriately record transfer affidavits and report the gift properly. There probably won’t be tax due but depending on how you structure things a return may be due. The rules are complicated...
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1 Answer | Asked in Tax Law for Michigan on
Q: Tax office took around $1000 in tax preparation fee, now asking for additional $4,000 in fee when I get my return
Carli Jo Aelker
Carli Jo Aelker
answered on Nov 1, 2022

Hi! This isn't really a question, you may want to reword your post.

You should read over your engagement letter for the accounting firm to see their fees and if they have a clause stating that they could charge more for complex returns or if, like my firm, they do part upfront and...
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