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Michigan Tax Law Questions & Answers
1 Answer | Asked in Family Law and Tax Law for Michigan on
Q: lengthy so my question is i was divorced in 2012 but had filed taxes jointly with ex husband he recieved entire refund

So that was supposed to offset arrearges courts said i owed but it was never applied to arrearges now i owe even more arrearges due to loss of job a few times over pass few years for a few months but had the original refund been applied to arrearges the arrerges would have been paid off and i would... Read more »

Brent T. Geers
Brent T. Geers answered on Nov 18, 2019

Is the arrearage for child support? You should present evidence of the refund amount to your local Friend of the Court office.

2 Answers | Asked in Tax Law for Michigan on
Q: As an income tax preparer in which I run my own business, I am being asked by a client of mine to cover the additional

property taxes that are being assessed for the past 3 years since the state denied his homestead exemption on his residence. He is married and his wife and he have lived in separate homes the past 3 years. He claims that I should have known to file them each "married filing separately" in order... Read more »

Brent T. Geers
Brent T. Geers answered on Oct 16, 2019

Doubtful, but you should really check with your insurance carrier and any ethics or licensing board to whom you have reporting obligations. Now if the client told you he specifically wanted to file married filing separately, and you didn't do that, that may lead to a different outcome.

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1 Answer | Asked in Tax Law for Michigan on
Q: IL demanded I pay full year of State taxes even though I lived and worked only in MI . What legal help getting $ back?

Employer accidently sent first half of 2017 taxes to IL and IL demanded I pay second half. Had house in Cook county IL but lived and worked in MI entire year. What legal resources are best to use for recourse or simply a CPA issue? Ended up paying full year state taxes for both Michigan and IL.

Andrew M Steiger
Andrew M Steiger answered on Sep 24, 2019

You owe personal income tax to the state of your residence. Request a refund from the other state. Michigan and Illinois have a reciprocity agreement based on residence, so once you establish this a refund should follow.

1 Answer | Asked in Tax Law for Michigan on
Q: Tenant withheld tax papers from landlord now she is registeted to buy house through new forclosure program
Bruce Alexander Minnick
Bruce Alexander Minnick answered on Jul 22, 2019

Your very brief statement does not contain nearly enough facts to be able to figure out what happened--and also fails to ask a question.

1 Answer | Asked in Tax Law for Michigan on
Q: Failed to make required 60% of payments on payment plan in wayne county home forclosed june 2019 any options
Bruce Alexander Minnick
Bruce Alexander Minnick answered on Jul 11, 2019

Unless you (or a lawyer hired by you) can convince the lender to give you a second chance, the next best option is to gather up all the money needed to purchase you home at the upcoming public auction. (Cash only)

2 Answers | Asked in Tax Law for Michigan on
Q: IRS Back Taxes, cannot afford to pay them, these date back to 2009-2011 have gone into collection need advise

I know that I have read that you can make payments up to 6 years, however when calculating these I cannot afford to make payments like this, at all I am 55 years old, and have nothing. It was all bad tax advice in the day.

Linda Simmons Campbell
Linda Simmons Campbell answered on Jun 17, 2019

You need to hire a good tax attorney. Most of us offer a free consultation. Stay away from the places you see advertised on TV. A tax attorney can frequently do better for you then you can do on your own. If you cannot pay monthly towards your debt they can get you put into currently not... Read more »

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1 Answer | Asked in Tax Law for Michigan on
Q: My ex was investigatedfor tax evasion. His case was recommended for prosecution , what percent of cases are prosecuted?

Investigation covered 2013-17

After investigation case forwarded to Supervisory special agent

Andrew M Steiger
Andrew M Steiger answered on May 23, 2019

The IRS publishes general criminal case statistics at its website - https://www.irs.gov/compliance/criminal-investigation/criminal-investigation-statistical-data. Once the IRS recommends that someone be prosecuted, chances are very high that an indictment (formal charges) will follow. For... Read more »

2 Answers | Asked in Tax Law for Michigan on
Q: I run a lan center in Michigan, my customers purchase time on my equipment. Do i owe sales tax?

I run a lan center in Michigan, my customers purchase time on my equipment. There are no physical products being bought or sold, Do I owe sales tax to the state on those purchases? I've been paying the standard 6% sales tax on every transaction at my business for 2 years now and am wondering if I... Read more »

Bruce Alexander Minnick
Bruce Alexander Minnick answered on May 7, 2019

Call the Michigan Department of Revenue and ask them this non-legal question.

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2 Answers | Asked in Real Estate Law and Tax Law for Michigan on
Q: My mother in law bought us a house. Now she wants us to pay her back...

She says to find a house within $65k budget. We did, and there was cash to spare. So she gave us the rest of the money. During the process she kept saying she didn’t want to be part of it because it’s our house and as long as we stay within budget it’s not her business.

We had been... Read more »

Bruce Alexander Minnick
Bruce Alexander Minnick answered on Apr 8, 2019

Your mother-in-law has no rights to the property unless her name is on the deed; but that does not mean she will not sue you claiming otherwise.

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2 Answers | Asked in Tax Law and Business Law for Michigan on
Q: I have a full time job with 120 mile commute. If I say delivered fire wood daily. could I write same miles off?

If I established a legal and credible business which used the same route and daily miles as regular full time job could I some how write regular miles off or a weekly %?

Brent T. Geers
Brent T. Geers answered on Apr 2, 2019

Your question is more tax than law related. I can see where you're going with this, and it might work. I just think at the very least, you are opening yourself up to an audit, which very quickly will zap any money saved in fees to a CPA or tax attorney to work through it with you. You would have to... Read more »

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1 Answer | Asked in Tax Law for Michigan on
Q: Can a city charge you taxes if neither your home or work address is within that city?

The company I work for does deliver products within the city limits and that's why (according to the city) I'm being charged taxes.

D. Mathew Blackburn
D. Mathew Blackburn answered on Mar 29, 2019

If you don't agree file an appeal and then go to court if you don't win on appeal.

The problem with these cases is that it's rarely worth pursuing because of the low dollar amounts involved and the high cost of challenging the assessment. The city tax department. knows that so you see a lot...
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2 Answers | Asked in Tax Law for Michigan on
Q: My 2017 tax return is still being held up. And the IRS is not helping me or letting me know what’s going on.

They’ve sent me a notice letter and 2 letters following that to submit all these documents for verification. This was completed during the first week of March and I called today and told me to wait. Help ! I have no money for rent. And the so-called advocate service are no help.

D. Mathew Blackburn
D. Mathew Blackburn answered on Mar 25, 2019

Get an attorney.

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1 Answer | Asked in Tax Law for Michigan on
Q: I have rented a duplex since 6/1/2018 in grandville, mi. Our income was just under 40k. Doe we qualify for prop tax cred

We moved from florida 6/1/2018. Total year income less than 40k. It is a duplex owned by an individual not a company.

Brent T. Geers
Brent T. Geers answered on Mar 5, 2019

You would need to own the property to claim a property tax credit.

2 Answers | Asked in Tax Law for Michigan on
Q: I haven’t received any reported income over the last 17 years and I have been single. Am I in any trouble?

I am now married, as of December 2018. My wife works a full time salary job so is has always filed her taxes. Should she file married/joint? Will this raise a flag to the IRS since I haven’t filed any taxes for this long?

Frank Huerta Jr
Frank Huerta Jr answered on Jan 4, 2019

If you were required to file taxes in any of those 17 years you should have. You can voluntarily file your returns to get compliant if that is the case. If you did not make enough money to meet the filing requirement for those years, you are not responsible to file the returns.

You have...
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2 Answers | Asked in Divorce and Tax Law for Michigan on
Q: Divorce 2/2018. Ex has rec'd notices re: taxes owed for 15 & 17. he is self employed, i'm not. He says i'm liable.

Filed MFJ 4/2018 per decree. I have my taxes taken out of my payck. He is self employed and owner of business and doesn't have them come out. We owed State and city taxes which were paid. Now he is saying we owe more and because we were married when they were incurred I should be responsible... Read more »

Neil Colman
Neil Colman answered on Dec 13, 2018

What does your Judgment provide? If they were joint returns and not addressed in the Judgment, you may have to go back to court in an attempt to get clarification. The government is not a party to your divorce. Therefore, both taxpayers are liable if not addressed in the Judgment.

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1 Answer | Asked in Business Law and Tax Law for Michigan on
Q: Question regarding business taxes, amount possibly owed, student loans, garnishment and payment plans

I filed taxes for my business and informed the IRS my business made 11k profit in 2016 and 13k in 2017. I informed them that the gross revenue for my business was 90k in 2016 and 138k in 2017. I dont have expenses to show them as I didnt keep receipts but I did a rough estimate of my expenses to be... Read more »

Trent Harris
Trent Harris answered on Dec 13, 2018

Estimates without documentation are not good enough for the IRS. You need to work with a tax accountant or CPA to reconstruct some sort of paper trail for your expenses. Otherwise, your eligibility for a student loan is going to be the least of your problems. If the IRS denies your deductions for... Read more »

1 Answer | Asked in Tax Law and Real Estate Law for Michigan on
Q: I’m assuming the mortgage and buying out my partner due to a breakup. Will I have to pay a state/county tax in Michigan
David Soble
David Soble answered on Oct 25, 2018

By paying "state or county tax" I am going to assume that you mean 'transfer" tax. Assumption of a mortgage should not be a taxable event since you state that you are already a partner / member of organization. You also can check with your CPA since he will know your tax status best.

1 Answer | Asked in DUI / DWI and Tax Law for Michigan on
Q: Tax-wise, is there a way to write off the cost of mandated drug/alcohol testing and/or fines and fees paid to the court?

I plead guilty to an OWI charge. I've paid over $2000 to the court and will be paying over $2000 in accumulated costs associated with mandatory drug and alcohol testing ordered by my probation officer. Having kept receipts, are those costs able to be deducted when doing taxes? Can I write off... Read more »

Brent T. Geers
Brent T. Geers answered on Oct 10, 2018

You'll need to consult with a tax attorney or other tax professional, particularly about whether mileage is deductible. It will all obviously depend on your overall tax situation; with the raised standard deduction starting with this tax year, a lot of people who used to itemize may no longer be... Read more »

1 Answer | Asked in Tax Law for Michigan on
Q: I have a parent that wants to pay my loans of in one lump sum. Is it possible to avoid Gift Tax on the excess over 15k?

I know the allowable amount for a gift is up to 15k, but after that what happens? is it taxed, by how much, and is it avoidable?

Eric Steven Day
Eric Steven Day answered on Aug 28, 2018

You can avoid paying any tax, but you will be required to file a gift tax return, Form 709, along with your normal 1040 tax return you file annually. When you pay more than the 15K allotted for individuals to gift on an annual basis, you have to file the Form 709 to record the excess gift.... Read more »

1 Answer | Asked in Probate and Tax Law for Michigan on
Q: I was given my home in MI when my mother passed away. It is in my name. Do i pay cap gains when I sell it. Im a FL res.

She had the home in trust, I went up and put the home in my name. I am wanting to sell it now but I dont know how capital gains works when it was left in a trust to me,

Kenneth V Zichi
Kenneth V Zichi answered on May 9, 2018

The answer is 'probably yes'. Trusts are a 'one size fits all' solution to avoid probate that like all 'one size fits all' items rarely fit just right for any one situation.

You need to take the documents, including what the tax basis of the property was going INTO the trust to a local...
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