Tax Attorney Support for Michigan Tax Problems

Owing back taxes to the Michigan Department of Treasury (DOT) is overwhelming, especially once the notices start coming in and you see the penalties piling up. But ignoring the situation makes the balance grow and puts you at risk of increasingly aggressive collection actions. 

Luckily, there are relief options, and our Michigan-based tax attorneys can help you access them. At The W Tax Group, we meet our clients where they are – whether the state has sent the first collection notice or it’s actively garnishing your wages, we can help. 

Schedule a consultation with us now to learn more about our tax resolution services and how we can help fix your tax problem. 

Need Help in Michigan? You’re in the Right Place If…

We can help you if you’re experiencing any of these tax problems in Michigan: 

• You owe state income tax from a recently filed return, a substitute return for a year you didn’t file, or due to an adjustment to your return. 
• Your business owes Michigan sales tax and has fallen behind on filings.
• You have outstanding Michigan payroll or withholding tax liabilities and are struggling to catch up.
• Your business has accumulated tax debt because of cash-flow problems, missed filings, or unexpected state tax assessments.
• You disagree with a Michigan tax assessment and believe the amount you owe is incorrect.
• Penalties and interest have caused your Michigan tax balance to grow beyond what you originally owed.
• You’re worried about personal liability for business tax debt and need to understand your potential exposure and what to do next.
• You’ve received multiple Michigan tax notices and aren’t sure which ones require immediate action.

If you owe the state, we’ll help you explore options like an installment agreement, Offer in Compromise, penalty relief, or Currently Not Collectible status, but if you don’t agree with the tax debt, we’ll start there first. 

Get Help With Common Michigan Tax Problems

The W Tax Group helps individuals and businesses resolve tax problems with the Michigan Department of Treasury (DOT). Here are the most common Michigan tax problems our team can help you deal with: 

Back taxes 

Back taxes refer to any old unpaid taxes that you owe to the Michigan DOT or the IRS. You may incur back taxes when you file but don’t pay, or if the department adjusts your return during a review or an audit. Our team will help you identify the best way to pay your MI back taxes.

Unfiled MI tax returns 

Many taxpayers end up falling behind on filing their MI taxes, but even if it’s been years or over a decade, there is a way to catch up. Our attorneys will get you back on track with unfiled IRS and MI returns.

Letters and notices

Written notices are the DOT’s primary communication method. This could include notices informing you of your tax debt, urging you to make payments, requesting additional information, or threatening collection actions. To protect yourself, get our help responding to notices.

Michigan tax levy release and help 

The MI DOT has the legal right to seize nearly any assets, provided it has sent the required notices. The Department can take a portion of your paycheck, freeze your bank account up to the amount you owe, or seize and sell your property to cover the tax debt. Let our attorneys help you stop MI and IRS tax levies.

MI tax lien resolution services

If you fail to pay your taxes, the DOT will file a tax lien against your property. While this doesn’t directly affect your credit score, it’s in the public record, so you won’t be able to transfer, sell, or borrow against property unless you deal with the lien first. Plus, it automatically attaches to any new property you get, even if it’s a gift or inheritance. Our attorneys can help you resolve MI and IRS tax liens. 

Michigan sales tax attorney 

Individuals or businesses that sell tangible personal property must remit sales tax to the Michigan DOT. Failure to collect, remit, and file these returns on time leads to penalties and interest – and can even put your business license at risk. In addition, if you purchase items for use in Michigan and sales tax isn’t collected, you may need to file and pay use tax. 

Help with MI business & payroll taxes. 

On top of sales tax, businesses must deal with a range of state taxes including the Michigan Business Tax or Corporate Income Tax. Additionally, employers must file state withholding returns annually and make monthly, quarterly, or annual deposits, depending on their assigned deadlines. 

Issues that can arise from business and payroll taxes include missed payments, missed returns, and incorrect tax assessments. There’s also a risk of personal liability for some business tax debt and challenges related to closing a business with tax debt. Our attorneys have the experience to help you with all of these problems. 

Tax evasion in Michigan

If the DOT convicts you of tax evasion, you can be incarcerated for up to five years, fined up to $5,000, or both. To avoid this, if the state government takes legal action for failing to file your tax returns or underreporting, you need a tax attorney to help prove that you didn’t willingly underreport or fail to file returns. 

State tax audits 

The Michigan DOT can audit a taxpayer’s return up to four years after it’s filed. The agency can audit sales tax returns, payroll returns, individual returns, and any other returns they process. Common audit triggers include: 

• mismatches between the information provided on the return and other information submitted to the Department
• statistical anomalies based on industry or location
• inconsistent filing patterns

Basically, anything that makes your return stand out in a way that makes the DOT’s computers think there might be a mistake puts you at risk of an audit. Once selected, you must provide documents to back up what you’ve reported on your return. 

Tax refund offsets

The Treasury Offset Program (TOP) is a debt collection program that allows the State to seize your federal tax return to collect delinquent state income tax obligations. If you don’t pay the balance in full or provide documentation proving that part or all of the debt owed to the Michigan DOT is not past due or legally enforceable within 60 days after receiving the Notice of Intent to Offset, your federal refund is applied to your Michigan tax debt. 

Consequences of Not Resolving Michigan Back Taxes

A Michigan tax attorney can help you resolve your tax problems, but only if you reach out for help. The longer you wait, the more risks you face. Here are some consequences of ignoring your tax debt:

Penalties and interest

Unpaid taxes (for instance, unpaid income tax, unpaid sales tax, etc.) can lead to mounting penalties and interest. If you file late or the DOT issues a substitute return to assess tax against you, they’ll backdate the penalties and interest on the balance due to the original due date.

Tax collection letters and notices

The Michigan Department of Treasury will send notices warning you about your outstanding balance. These letters can feel aggressive, and you shouldn’t ignore them as they often mark the beginning of more serious enforcement efforts.

Wage Garnishment

The state of Michigan has the authority to garnish your wages. This means a portion of every paycheck can be taken to cover your tax debt, which can quickly disrupt your ability to cover basic expenses.

Bank account levies

Tax agencies can also issue levies on your financial accounts. This includes checking, savings, and investment accounts. Once a levy is in place, funds will be frozen and eventually withdrawn to satisfy your debt.

Property liens

If you own a home, car, or other property, the State of Michigan can file a tax lien against it. A lien can prevent you from selling or refinancing your property until you clear the debt. 

Asset seizure

In more severe cases, the IRS or Michigan Department of Treasury may seize and sell your personal property. This could include real estate, vehicles, or other valuables. The proceeds are used to pay down your tax liability.

Criminal charges – rare

While rare, criminal prosecution is possible in cases of tax fraud or willful evasion. This typically involves situations in which someone had the means to pay their taxes but actively chose not to comply. The DOT must prove that a taxpayer intentionally engaged in tax evasion.

How We Help: Resolution Options for Michigan Tax Problems

Our Michigan tax attorneys will help you identify the best resolution option based on your unique tax problem, your income, assets, and any other relevant case factors. Here are the main solutions we’ll help you access. 

Set up an installment agreement.

If you can’t pay your tax bill in full, our attorneys can help you set up a monthly payment plan with the MI DOT, including payment plans for MI sales tax debt.

Negotiate an offer in compromise.

You may qualify to settle your tax debt for less than the full amount through an offer in compromise. Your Michigan tax lawyer will evaluate your eligibility, prepare the application, and work to negotiate a fair outcome.

Prove financial hardship or “Currently Not Collectible” status

If you’re on a fixed income, unemployed, facing medical issues, or dealing with another serious hardship, our attorneys can help you request currently not collectible status. This temporarily halts collection actions until your financial situation improves.

Apply for reasonable cause penalty relief 

You can get a penalty waiver if you can show reasonable cause for failure to pay your tax on time. This request must be in writing, and the MI DOT evaluates requests on a case-to-case basis – it’s best if prepared by a tax attorney since it requires documentation and knowing what the tax authorities want to hear. 

Acceptable reasonable causes include death, fire, serious illness, criminal acts against you, and natural disasters, but getting relief is more about showing how you tried to comply with the tax code but couldn’t due to events out of your control. Our attorneys will ensure your relief request hits the right note.

The Resolution Process With Our Michigan Tax Attorneys

If you choose to work with W Tax Group to resolve your Michigan tax liability, here’s what to expect: 

• Case review: We begin by reviewing your tax situation. This helps us understand what you owe, which tax periods are involved, whether returns are missing, and what collection actions Michigan Treasury has taken. 
• Assessment: We review your income, expenses, assets, liabilities, and other relevant financial information to understand your ability to pay. 
• Strategize: We determine which resolution options may fit your circumstances. We explore the installment agreement, Offer in Compromise, Currently Not Collectible status, penalty relief, or other appropriate approaches. 
• Execution: Once a strategy is selected, we help prepare the required forms, financial information, supporting documentation, and send the request to the DTO. 
• Communication: We communicate with Treasury regarding your account, we negotiate the best resolution possible, and work with you through the process. 

Why Choose Us for Michigan Tax Relief? 

Why should you choose to work with The W Tax Group to fix your Michigan tax problems? Here are just a few reasons: 

• Personalized strategy: We don’t offer generalized tax resolutions; we review your tax balance, income, assets, filing history, and collection status, and determine which options apply to your specific case. 
• Sustainable relief: Starting with a thorough review ensures that we only help you apply for the relief options that the State is the most likely to approve, and since our recommendations are tailored to your budget, it’ll be easy to stay on track with your payments moving forward.
• Michigan-specific knowledge: We understand the Michigan Department of Treasury’s collection process and state tax resolution programs inside and out, and we leverage our experience to get you success. 
• Communication and support: We keep in touch and offer support throughout the process; we don’t just offer tax relief options, we explain what they mean and what it takes to remain compliant. 

Meet Our Michigan Tax Lawyers

Stephen Weisberg

Stephen is an experienced tax attorney known for his strategic approach to resolving complex tax cases. He has helped countless clients navigate serious IRS and state tax issues with confidence.

Read Stephen’s full bio.

Lyle D. Warren

Lyle is a skilled negotiator with a strong background in both federal and Michigan tax matters. His practical insight and deep knowledge of tax law make him a trusted advocate for clients seeking relief.

Read Lyle’s full bio.

Call a Michigan Tax Attorney

You’ve spent long enough worrying about your tax situation, and we’re help to help. 

If you owe taxes to the IRS, the Michigan Department of Treasury, or both, it’s time to contact our attorneys. From Michigan income tax to sales and use tax to corporate income tax issues, The W Tax Group has the experience to guide you toward a resolution that works.

Call us at 1-877-500-4930 or complete the form at the bottom of this page to schedule your complimentary consultation. We’ll review your case and connect you with the right team member to help you move forward.

Frequently Asked Questions (FAQs)

Here are common questions we get about hiring a Michigan tax attorney: 

How can a Michigan back tax attorney help me? 

A back tax attorney reviews your finances and personal situation to identify the best resolution for your tax problem. Then, they communicate with the IRS and the Michigan Department of Treasury on your behalf. They can stop active collection actions (wage garnishments, bank levies, etc.) while working toward a permanent resolution.

Can I settle my Michigan back tax debt for less? 

Yes, in qualifying cases. An Offer in Compromise allows taxpayers to settle their debt for less than the full amount owed, but only once the MI DOT determines that’s the most they can reasonably collect from you. The IRS will also settle tax debt if you meet the qualifications.

How much does back tax help cost in Michigan? 

Fees depend on the complexity of your case. The W Tax Group offers a free case analysis so you understand your situation and options before making any commitment.

Will Michigan garnish wages for unpaid taxes? 

Yes. Both the Michigan Department of Treasury and the IRS have the legal authority to garnish wages for unpaid taxes. Acting quickly with a tax attorney is the most effective way to stop or prevent a garnishment.

Can a tax attorney stop Michigan tax levies? 

In many cases, yes. An attorney can work to get an active levy released by establishing a resolution agreement with the DOT, or by demonstrating that the levy is causing financial hardship. 

What happens if I ignore back taxes in Michigan? 

Ignoring back taxes allows penalties and interest to keep growing. The IRS and Michigan will escalate collection efforts, which can include liens on your property, wage garnishments, bank levies, and seizure of personal assets.