Michigan Sales Tax Attorney

Michigan Sales Tax Attorney

Get Guidance for Your Sales Tax Problems and Challenges

If you’re running a business in Michigan, you need to learn how to collect and remit sales taxes to the Michigan Department of Treasury. There are harsh consequences that come with uncollected and unpaid sales taxes that may significantly affect your livelihood. At The W Tax Group, we help you avoid sales tax problems by ensuring you’re doing everything right, from classifying taxable items to using the correct tax rates to filing on time and setting up payments when you can’t pay in full. 

To get help with your sales tax obligations, contact us for a consultation today.

Understanding Michigan Sales Taxes 

Sales tax is a tax paid to a state or local government on certain goods and services. Michigan adopted a general state sales tax in 1933, and as of 2025, the state rate is 6%. Unlike other states where localities can impose sales taxes, as of 2019, there are no local sales taxes in Michigan. Sales and use tax in Michigan is administered by the Michigan DOT.

As a business owner selling taxable goods or services, the Michigan state considers you an agent to collect tax from your buyers and remit it to the approximate tax authority. 

Any sales tax collected from purchasers belongs to the State of Michigan; it’s not yours. You are responsible for managing the taxes you collect and remaining in compliance with the state laws. Failure to do so can lead to penalties, interest, or even criminal charges (depending on the circumstances).

Our team of sales tax attorneys is experienced with everything concerning Michigan taxes, and they can resolve it on your behalf.

Common Michigan Sales Tax Problems

In our experience, these are some of the top sales tax problems Michigan business owners face: 

Missed Deadlines & Unpaid Taxes 

As a business owner, knowing the filing dates is critical because missed deadlines and late payments lead to penalties and interest. 

The Michigan Department of Treasury decides how frequently a business should file returns based on sales volume. It’s easy to get confused and miss the deadline. 

You get a penalty of 5% of the unpaid tax for the first two months. After that, the penalty is 5% per month, until it reaches 25%. For instance, if you owe $10,000 and pay 45 days late, you incur a 5% penalty (because you’re within the two-month late range), but if you’re more than two months late, an additional 5% penalty applies every month – in other words, if you pay 65 days late, you face a 10% penalty because you’re more than two months late. If you pay 95 days late is a 15% penalty, since you’re over three months late.

Besides the penalty, your tax debt also accrues interest at 1% above the “adjusted prime rate” from when it’s due until you make payments. 

Personal Liability 

Michigan state considers the sales tax you collect from your customers as a trust fund tax.” This means once you collect the tax, you shouldn’t use it to fund other parts of your business; you’re holding it “in trust” on behalf of the state government. 

Michigan Laws allows the DOT to not only hold the business accountable for unpaid taxes but the persons responsible for collecting and remitting the sales tax. You, therefore, can‘t get away without paying sales tax without consequences. The DOT can issue garnishments and liens to the business, but also to you personally to recover the sales debt. Even if you close down the business, you could face personal liability for unpaid sales tax.

Collection From the Michigan Treasury

As mentioned, the DOT is allowed to recover the unpaid sales tax from the responsible persons. If this happens to you, the department can initiate collections, which might include wage garnishing, bank levies, and asset seizure. If the DOT realizes the failure to pay taxes was fraudulent or intentional, they can pursue criminal charges for tax evasion. 

The DOT can also revoke your business license (for example, your liquor license or sales tax permit) or deny renewal for unpaid taxes. 

Triggered Audits 

Unpaid sales taxes are one of the major red flags that can trigger an audit. If you file taxes and don’t make payments, the DOT will want to find out why. Audits are long and expensive, and they likely end with back taxes and penalties for your business. 

Our Solutions for Michigan Sales Tax Problems

When you contact us, we’ll customize a solution based on your unique concerns, business goals, and budget. 

File Past Due Tax Returns & Start Paying Current Taxes

If you find yourself in a hole, the first step is to stop digging, or in this case, break the cycle of unfiled tax returns and unpaid taxes. For starters, begin setting aside sales tax funds daily – many point-of-sale systems have options where you can direct the sales tax (or a certain portion of sales) into a separate savings account.

Also, make sure you address unfiled returns. We can help go through your records, see how far back your unfiled returns go, and file them for you.

Sales Tax Penalty Abatement 

Sometimes life happens and makes it impossible to file tax returns. Even the DOT acknowledges this, and if you have a valid reason for filing or paying taxes late, you can apply for penalty abatement.

We can help request the abatement and ensure the penalties are reduced or waived if possible. 

Sales Tax Payment Plan

Michigan DOT offers business and individuals installment agreements. Individuals can get up to 24 months, while businesses can get 36 months. 

This can help manage large tax debts by spreading them into monthly payments over time. We handle all paperwork, negotiations, and secure the lowest monthly payment possible for our clients. 

Financial Hardship Solutions

If you’re facing financial hardship, you may qualify for Currently Not Collectible (CNC) status, which temporarily stops the DOT collection efforts. Generally, this is not an option for in-operation businesses, but it can be extremely helpful if you’re facing a personal liability that you can’t afford to pay.

Also, if you’re not in agreement with your tax bill or you can’t pay the full tax amount without financial hardship, you may be eligible for offer in compromise. That’s where the DOT agrees to settle the tax for less than owed – but only after taking an extensive look at your finances or any extenuating factors. 

We can evaluate your financial situation to determine your eligibility and prepare your request to avoid rejection. 

Voluntary Disclosure Agreement ( VDA)

If you’ve not been paying sales taxes for a long period, a VDA might be the best way to go about it. It helps reduce penalties, limits the number of years the DOT looks back on your business, protects your business reputation and avoids an audit. 

We can help you prepare and file for the VDA to ensure everything is filed correctly. By proactively engaging with the DOT, we prevent an audit and negotiate better terms for your business.

Why Choose Us?

If you need a tax attorney, there are a lot of options. Here’s why you should contact the team at The W Tax Group.

Experience 

We have experience in dealing with Michigan sales tax problems and the IRS so we can handle all your tax problems. Whether it’s about unpaid taxes or late returns, we’ve done it all before. Our team has three tax attorneys who have had success not only in negotiating state tax liabilities but federal tax liabilities too.

Custom Solutions 

We understand that every business and individual is different. We offer personalized tax solutions based on your finances, business plan, and preferences. 

Clear communication throughout the process 

We know how much anxiety unpaid sales taxes can cause. We try to ease your stress by responding to emails and calls on time and updating you about every milestone. We are also upfront on how much our services cost, so you never have to worry about hidden surprise costs. 

No Pressure 

Our consultation is 100% free, and our purpose is to hear what your issues are, give you an idea of how we can help, and offer a look into what working with us is like. The consultation also gives you a chance to decide if we’re a good fit for your needs. 

What to Expect When You Choose Us 

1. Discovery Call

   On this first call, we listen and you tell us all about your tax problem. How long the issue has been going on, any notices you’ve received, and what your expectations are. After the meeting, we request supporting documents and records to review your case further.

2. Our Attorneys Review the Case

   We review your case with your expectations and financial situation in mind. We also go through your documents and any correspondence you’ve had with the DOT and come up with the best solutions to pursue. 

3. Planning 

   We let you know about the best strategies in your case, as well as their pros and cons, to ensure you make the right decision for your needs and goals. Once we settle on the solution, we begin planning the execution. 

4. Resolution Begins 

   With the strategy at hand, execution begins. We handle any negotiations, communication, and paperwork with the Michigan DOT. Our attorneys work diligently to see that you get the best possible outcome. 

5. Aftercare 

   We appreciate business, but once we work with our clients, we don’t want them in the same boat again. So we help you implement a plan to stay compliant in the future.

Get Help With Michigan Sales Tax Problem

Unpaid sales can strain your business or cause its closure. The wage garnishing, penalties, and liens can be a lot to handle. Whether you’ve received any notice from the DOT or you just want to fix your tax problems before they catch up with you, we can help. Schedule a call and get advice from tax attorneys with a proven record.