Two things guaranteed in life- Death and Taxes
The dreaded day of April 15th is quickly approaching. Remember that you MUST file your return or request an extension to file by October 15th on this day to avoid penalties. It is important to keep in mind that when filing an extension, it is only an extension for filing purposes, NOT an extension on your obligation to pay. The amount due from the previous year’s tax return can be used as a guide to what you have to pay this year. We recommend that you always go to an experienced certified public accountant or tax attorney.
What happens if you cannot pay the balance due or have past due taxes?
With the dismal Michigan economy, there are many taxpayers who cannot afford to pay their tax debt. This results in the debt moving to the collection departments of the IRS or State. Whether it is personal taxes or business taxes that are owed, the IRS and State of Michigan are aggressive collectors. They have the ability to garnish your tax refunds, file liens on your property, garnish your paychecks, and even levy your bank accounts. They may even knock on your front door!
What we can do for you:
Fortunately the IRS does have an Offer in Compromise program. The State of Michigan, much like other states, has finally passed legislation for an Offer in Compromise program which began January 1, 2015. A “fresh start” program has been implemented allowing more lenient guidelines. Some notable Offer in Compromises accepted this past month for qualifying taxpayers have been:
-A onetime payment of $200 on an IRS debt of $75,000
-A onetime payment of $150 on an IRS debt of $25,000
In order to qualify, the State or IRS may want financial information from you such as, whether you or your spouse are working, if you have any medical hardship, if you own your own home or other property, and your bank statements. This information will be used to determine if you are eligible per their guidelines for a reduction in liability. Tax debt can be a stressful burden. If you have questions about your past due tax liability, or to retain a Michigan IRS Tax Debt Attorney / Garmo & Kiste, PLC call us at (248) 398-7100 for a free consultation or contact us with a private message.
Michigan Severely Over-Legislated
Commit any crimes today? After you read this, you may be less sure of your answer. A report was recently published, “Overcriminalization in the Wolverine State,” outlining how out of control our legislatures have become. To clarify, there is not a higher crime rate in Michigan, there are just more crimes a person can be accused and/or convicted of. For example, recently our office represented an individual for the egregious misdemeanor of failing to have a lid on their trashcan. Some other examples from the article include:
■One man who disposed of scrap tires at a facility he thought was legal was sentenced to 270 days in prison and a $10,000 fine for unlawfully disposing of the tires since the facility did not have a license.
■A few years ago, a woman faced charges for operating an illegal day care simply because she helped her neighbor’s children get on the morning school bus.
■Other pitfalls include driving motor vehicles in a state wilderness area, purchasing a new or used motor vehicle on the weekend and transporting Christmas trees without a bill of sale.
■And here’s a sampling of new laws passed in 2012: It’s a crime to display any material containing the name of an elected Michigan official at a polling site; and also illegal to display an owner’s contact information on a barge.
While it is admirable for legislators to legislate against serious crimes, this proliferation of laws can have several unintended consequences. First, it can entrap law abiding citizens. We don’t want courts to waste their time pursuing non dangerous offenders. Secondly, this can divert law enforcement efforts away from dangerous criminals. Finally, a confusing legal code can lead to inconsistent applications of the laws, whether through mistake, or by design. Many of these esoteric laws are rarely used, and can be used as tools of oppression against communities that are more heavily surveyed by the police.
There is one consequence of these crimes that seems was fairly likely intentional: it brings in revenue for the state and municipalities. If you have been a victim of overzealous lawmakers, or to retain Garmo & Kiste, PLC call us at (248) 398-7100 for a free consultation or contact us with a private message.
