Tax Law in Flint, MI
Tax law refers to the regulations governing the calculating, filing, and paying of taxes. When handling tax law cases, attorneys may manage taxes at various levels, such as local, state, and federal. The practice of this type of law involves understanding, defending, and resolving issues related to payment or non-payment.
If you hire a qualified , Michigan professional to handle your business or personal taxes, you may feel protected from disputes. However, even a misplaced comma or added zero can cause the IRS to believe you owe more than you do. In some instances, accountants might also take deliberate actions that result in legal and financial repercussions.
The City of Flint collects a local income tax of 1% from residents and 0.5% from non-residents who work within the City. Flint imposes the income tax on your gross income, which includes any deferred income. The Flint Income Tax Division (ITD) is responsible for administering the City’s Income Tax. You may request a filing extension by sending payment of your estimated annual liability to the ITD with a written request for an extension. However, 6 months is the maximum extension allowed.
Tax Law Topics to Understand
If you find yourself facing , Michigan taxation issues, understanding tax law and how it works can help. Most Americans have only basic knowledge of how the tax systems work, and with good reason. They are complex. Small business owners need to understand tax law and how it impacts their business. Here are some essential tax law topics to get you started.
An IRS audit is a review of an experienced Flint, Michigan individual’s or an organization’s finances and accounts to ensure accuracy. The audit may also uncover discrepancies business owners were not aware existed.
These are just a few of the things the IRS looks for when conducting an audit:
- Does your lifestyle match your income?
- Are you passing off personal expenses as business expenses?
- Are you overstating any of your business expenses?
- Did you fail to report any business income or did you inflate that income?
- Do your payroll taxes match that of your employees?
- If your business handles a lot of cash, are you diverting any of this into your own pocket?
If you are about to have your business audited, consider hiring a qualified Flint tax law attorney. They can help you to navigate the complex process ahead and offer advice as issues arise.
Tax evasion refers to any activity an individual or business in , Michigan engages in to reduce or avoid their tax liabilities. There are two types of tax evasion: evasion of assessment and evasion of payment.
Evasion of assessment means the taxpayer performed an action with the goal of defeating the assessment of a tax. The under-reporting of taxes is a common example of this. Evasion of payment means that you avoid paying the IRS by hiding money or assets that should become taxed. Here are some examples of tax evasion:
- Keeping a double set of books
- Overstating deductions
- Destroying financial records
- Concealing sources of income
- Filing a false return
- Making false invoices
- Holding property in another person’s name to avoid taxation
If you are found guilty of tax evasion in Flint, Michigan you can face hefty fines, prison time, or both.
Income Tax and Fraud
Income tax fraud is the willful attempt to evade or defraud the IRS and Flint tax laws. Tax fraud occurs when an individual or business does any of the following:
- Prepares and files a false tax return
- Willfully fails to pay taxes
- Intentionally fails to file an income tax return
- Intentionally fails to report income received
- Makes fraudulent or false claims on the tax return
Under Michigan law, a Flint resident is committing a felony if they make a false or fraudulent tax return with intent to defraud. Upon conviction, they can face up to 5 years in prison and up to $5,000 in fines. The Michigan Attorney General and the Genesee County Prosecuting Attorney have concurrent power to enforce this law.
When Would You Need an Experienced Flint, Michigan Tax Law Attorney?
Facing Legal Issues Regarding Taxes
If you’re under investigation from the IRS or planning a lawsuit against, you will need a qualified , Michigan attorney who practices tax law. To illustrate, counsel can help collect the information you need and create a viable defense.
When Starting a Business
There’s more to starting a business in , Michigan than selling products or services. You also need to determine the business type and structure. This status, in turn, determines how the business and your earnings get taxed. Choosing the wrong business structure can cost you.
Michigan enacted the Michigan Corporate Income Tax (CIT) in 2011, replacing the Michigan Business Tax. Consequently, C corporations in Flint must pay a flat 6% corporate income tax. The CIT also applies to taxpayers taxed as corporations federally. The CIT does offer one credit, the small business alternative credit. This credit offers an alternate tax rate of 1.8% of adjusted business income. Taxpayers with less than $350,000 in allocated gross receipts do not have to file or pay the CIT.
If You Have a Taxable Estate
If your estate is worth more than $11.58 million, or $23.16 million if you’re married, your estate might get taxed up to 40% for surpassing that threshold. No one wants a huge portion of their estate going to the IRS instead of their heirs. This is why wealthy people involve tax lawyers in their estate planning process.
According to AARP, Flint estates do not have to pay state estate tax. However, a Flint estate may still have to pay federal estate tax if it reaches the minimum threshold. For 2021, the minimum value threshold is $11.7 million. The threshold increases to $12.06 million for 2022.
Work with an Experienced Tax Law Lawyer In Flint, Michigan
Facing issues related to tax law can feel overwhelming. No one wants to go head-to-head with the IRS. Experienced , Michigan tax law lawyers have the expertise you need. From conducting audits to defending you in court. We can even help you connect with an attorney across Michigan state lines.
Submit a request online or call us today at (866) 345-6784 to get in touch with an experienced lawyer in your area!