Tax Attorney in Michigan

Yes. Michigan imposes a flat 4.25% personal income tax under MCL 206.51 of the Michigan Income Tax Act of 1967. The 2023 tax year saw a temporary reduction to 4.05% under the automatic rate-reduction trigger in MCL 206.51(1)(c), but that adjustment was a single-year event and the rate returned to 4.25% for 2024 and remains at 4.25% in 2026. Federal income tax on Form 1040 with the IRS applies separately and in addition. Michigan filers also pay city income tax in roughly two dozen Michigan cities under the City Income Tax Act, MCL Act 284 of 1964.

The U.S. Tax Court designates Detroit as the Michigan place of trial. Sessions are held at the Theodore Levin United States Courthouse, 231 W. Lafayette Boulevard, Room 1069. A petitioner designates the preferred place of trial under Tax Court Rule 140; cases from Grand Rapids, Lansing, Flint, Saginaw, Kalamazoo, Traverse City, Marquette, and Sault Ste. Marie route to the Detroit session. The Tax Court travels a limited circuit, and Michigan petitioners outside metro Detroit should account for travel to Detroit when calendaring trial.

Under MCL 205.27a of the Michigan Revenue Act, the Department of Treasury generally has four years from the date the return was due or filed (whichever is later) to issue a deficiency assessment. Fraud, substantial omission of taxable income, and unfiled returns extend the period or leave it open indefinitely. Once an assessment is final, the Department generally has six years to collect under MCL 205.27a(5), extendable by waiver. The federal IRS Collection Statute Expiration Date (10 years from assessment under IRC §6502) runs separately from any Michigan SOL.

Yes. The IRS examines federal income, employment, and excise tax. The Michigan Department of Treasury examines state personal income tax, the Corporate Income Tax, sales-and-use tax, and the flow-through entity tax. A Michigan resident or business can simultaneously face a federal IRS exam and a state audit. The two agencies share information through information-exchange agreements, and a federal adjustment is reportable to Michigan under MCL 206.325 within 180 days of a final federal determination. Detroit, Grand Rapids, Lansing, Flint, and other city income-tax administrators also receive federal adjustment data.

Yes. The Michigan Department of Treasury operates an Offer in Compromise program under MCL 205.23a, enacted in 2014. The state OIC is available where (1) doubt as to liability exists, (2) doubt as to collectibility exists, or (3) the taxpayer has received an accepted federal OIC under IRC §7122 for the same tax year and is seeking parallel state relief. The application is Form 5181 with supporting financial disclosure on Form 5182. The federal IRS OIC remains the standard mechanism for resolving a federal balance.

Your CSED is calculated from the date of assessment, which appears on your IRS Account Transcript as Transaction Code 150 (return filed) or Transaction Code 290 (additional assessment). Add ten years, then add the days for any tolling events: pending OICs, CDP hearings, bankruptcy stays, and so on. The IRS publishes the CSED internally on its CC ACTRA transcript; we pull this for clients as part of every engagement. A debt assessed in 2016 may be approaching expiration in 2026, and aggressive collection enforcement near the CSED is common.

Probably yes for the federal trust-fund portion. IRC §6672 assesses a Trust Fund Recovery Penalty against any "responsible person" who "willfully" failed to pay over withheld taxes — the FICA and federal income-tax withholding portion of Form 941, not the employer's share. The IRS conducts a Form 4180 interview to identify responsible persons. Anyone with check-signing authority, payroll-decision authority, or knowledge of the unpaid taxes can be assessed. On the Michigan side, unpaid state withholding under MCL 205.19 carries similar personal-responsibility exposure for officers, employees, and managers. The auto-supplier shutdowns that ripple through Wayne, Oakland, and Macomb counties produce a steady stream of TFRP cases.

Yes. IRC §7345 authorizes the IRS to certify "seriously delinquent" tax debt — $62,000 for 2026, indexed for inflation — to the State Department, which may then deny passport renewal or revoke an active passport. The certification reverses when the debt is paid, an IA is in place, an accepted OIC is in force, an active CDP hearing is pending, or Innocent Spouse Relief is in process. Michigan executives at Ford, General Motors, Stellantis, Dow Chemical, Whirlpool, Steelcase, and Kellogg's who travel internationally face material exposure, and decertification can be processed in 30 days or less in many cases.

Michigan imposes a 6% state sales tax under the General Sales Tax Act, MCL Act 167 of 1933, with no local-option surcharge. Unlike Ohio, Illinois, or California, no Michigan city or county adds its own piggyback rate — the rate is 6% statewide on tangible personal property and certain services. The companion 6% use tax under the Use Tax Act of 1937 applies to purchases on which sales tax was not collected. Personal liability for unpaid Michigan sales tax can attach to officers and members under MCL 205.27a, paralleling the federal Trust Fund Recovery Penalty under IRC §6672.

It depends on the city. Detroit's city income tax (2.4% resident / 1.2% non-resident) has been administered by the Michigan Department of Treasury since 2017 — you file and pay through the state. Grand Rapids, Lansing, Flint, Saginaw, Pontiac, Battle Creek, Highland Park, Port Huron, Hamtramck, Walker, Big Rapids, Hudson, Ionia, Jackson, Lapeer, Muskegon, Muskegon Heights, and Springfield each operate their own income-tax divisions under the City Income Tax Act (MCL Act 284 of 1964). Unpaid city income tax does not on its own trigger a federal IRS lien, but it compounds the total balance a Michigan worker is managing — especially for someone who lives in one city and works in another.

The Michigan Tax Tribunal is the state-level forum for tax disputes, established under the Tax Tribunal Act of 1973 (MCL 205.701 et seq.). The Tribunal has exclusive original jurisdiction over property-tax assessment appeals (after local Board of Review review), special assessment disputes, and final determinations issued by the Department of Treasury for state income tax, sales-and-use tax, Corporate Income Tax, and the flow-through entity tax. The Tribunal divides into two divisions: the Entire Tribunal hears commercial and industrial property cases above the small-claims threshold, and the Small Claims Division hears residential and lower-dollar matters. Appeals from Tribunal decisions go to the Michigan Court of Appeals. The Tribunal does not hear federal IRS matters — those go to the U.S. Tax Court.

Federal tax-resolution fees vary by matter complexity. A straightforward Installment Agreement typically falls between $1,500 and $3,500. A full Offer in Compromise with Form 433 financial analysis runs $4,000 to $7,500. Audit defense depends on the audit type and the number of issues. A U.S. Tax Court petition with case workup and trial preparation generally starts at $6,000 and rises with complexity. VTL provides a written fee quote after the free consultation. Cal Bar Rule 7.1 prohibits comparisons claiming we are cheaper or faster than competitors without verifiable substantiation, so we do not market on price.

Yes. Communications between you and a licensed attorney for the purpose of seeking legal advice are protected by federal common-law attorney-client privilege, subject to the usual exceptions (crime-fraud, waiver, etc.). The narrower federally-authorized tax practitioner privilege under IRC §7525 applies to non-attorney CPAs and EAs but does not extend to criminal-tax matters. An attorney handling your tax case retains the broader privilege that survives criminal investigation.

A Tax Court trial is a bench trial — no jury — before a Judge or Special Trial Judge of the U.S. Tax Court. In Detroit, sessions are held in Room 1069 of the Theodore Levin United States Courthouse on West Lafayette Boulevard. The session opens with calendar call where the Court hears scheduling issues. Most cases on the calendar settle before trial; the IRS Office of Chief Counsel attorney meets with petitioner's counsel during the days before trial. If trial proceeds, the petitioner bears the burden of proof on most issues, presents evidence and witness testimony, and the Court issues a written opinion typically within several months of trial. Small-tax-case procedure under IRC §7463 applies to deficiencies of $50,000 or less per year and uses a simplified evidentiary standard.

Yes, generally. IRC §6331(k)(1) suspends levy action while an offer is pending and for 30 days after a rejection, and during any timely-filed Appeals review of a rejection. The IRS will not levy on you while a processable OIC is being evaluated. However, the IRS may still file a Notice of Federal Tax Lien during the OIC pendency to protect its position. CSED is also tolled during the pendency. A poorly-prepared OIC that gets returned (not rejected) does not provide the same protection — processability matters.

For the Small Claims Division of the Michigan Tax Tribunal, taxpayers may represent themselves, be represented by an attorney, or by a CPA or other qualified representative under Tribunal rules. For the Entire Tribunal (commercial and industrial property cases above the small-claims threshold), an attorney admitted in Michigan is generally required for non-attorney parties to be effective beyond the initial pleading stage. Appeals from the Tribunal to the Michigan Court of Appeals under MCL 205.753 require Michigan-bar admission. VTL handles the federal side of overlapping matters and coordinates with Michigan counsel where Tribunal litigation or state-court appeal is necessary. Many Department of Treasury matters resolve at the informal-conference stage without ever reaching the Tribunal.