Michigan Taxing Information
In the collection process, you have rights, but failure to address notices from the State within given timeframes may void such rights. You may appeal some notices (Final Determination, Bill for Taxes Due, Final Assessment) if you do so promptly upon reception. Your appeal must detail the basis of your disagreement with the State, and provide evidence for your case. You may also present your case to the State by requesting a hearing.
Bank and Accounts Receivable Levies
If you have delinquent taxes, the State may levy your bank account as a means of resolving your liability, taking up to the amount of your liability. If you have a business that is delinquent, levies may be sent to the associated accounts receivable, which can have serious social and business repercussions. In any case, you will receive a Notice of Intent to Levy before action is taken, and it is recommended that you seek professional assistance promptly.
Should you fail to pay your full liability, you will at some point receive a Notice of Intent to Assess. At this point, your options are either to pay the full amount stated, or, if you honestly disagree with the amount stated, dispute it. You have a period of time upon reception of the Notice to dispute or appeal it, in writing.
Liens and Warrants
A means of enforced collection action the State may take is the filing of liens or warrants against personal property. These serve as public records of liability, and as such may affect credit and ability to sell or transfer property.
Priority One: Stopping Aggressive Enforced Collections
If you are unable to pay your liability in full, you may be able to make payment arrangements with the State. You may be required to provide a range of documentation, including financial statements, and will likely need to have all other tax returns and filings in order. Should you arrange a payment plan and fail to adhere to it, you may be subject to enforced collection actions.
Penalties and Interest
Delinquent taxes are subject to penalties and interest, which increase the total liability. The amount of each may vary by context and the type of tax left unpaid. Penalties may be waived if reasonable cause can be proven, with substantiating evidence.
Personal Assessment on Business Taxes
Failure to meet tax obligations on the part of a business may result in an assessment of personal liability. If you were a corporate officer or another bearer of responsibility associated with a matter of delinquency, you may be held personally accountable for any liability or part thereof.
Power of Attorney
While you may represent yourself before the State, you may also choose to have a qualified representative do so in your stead. This requires that you complete the appropriate documentation prior to any discussion of tax matters.
One means of enforced collection the State may use to resolve liability is the garnishment of wages or benefits checks. If you believe you may be subject to garnishment, it is recommended that you seek professional help.