Michigan Tax Legal Questions

Note that the State referenced in this site is Michigan not California. In any event, we do not have a national sales tax (yet) so the tax you are inquiring about is a California sales tax. Unless there is some special exception for items over 100 years old, the sale of the items would be a taxable event. I can't imagine the purpose behind such an exemption but, then again, it is California.... Read More

Yes there is, several, actually. Which statute of limitation's law applies to your situation will likely require you to see a tax attorney. For example, does this relate to a tax shelter? Is this a state or federal tax liability. There are too little facts to be able to answer your question. Find a tax attorney to discuss this with.... Read More

I would certainly seek counsel from a tax attorney immediately. Sometimes it is possible to have the penalties waived in order to keep the tax bill from becoming absolutely impossible. Generally, however, interest will not be waived and of course you will have to pay the taxes which were due. You need to reach some form of agreement and understand what that is with a taxing authority.... Read More

Your question states that the tax returns were not filed on a timely basis. From that it appears that you have been charge late penalties and interest. If you can demonstrate to the IRS that the agent you employed caused the delay, the IRS may abate the late filing penalty but not if you did not provide information, documentation or cooperation to your preparer. Theoretically you should have paid enough in to cover your taxes before the return was due so a late payment penalty is not likely to be waived nor interest on the amount of tax due if you owe additional tax. If you can establish that your damages in the form of penalties were attributable to the preparer, you may claim an offset against the fees charged or seek damages through a lawsuit.... Read More

Because you would receive a step-up in basis ( mainly the purchase price of the home plus capital improvements) to your father's date of death value, it is usually better to receive it after he dies. If he gives it to you before death and you sell it, you will be liable for capital gains tax on the entire amount it has appreciated since he acquired it.... Read More

A widow, generally speaking, is not responsible for her husband's IRS debt, however, if she is the personal representative of his estate (executor) she maybe personally liable for the estate taxes and any other federal taxes he owed at the time of his death. Another question I would ask is if the couple filed joint returns. If they did then, of course, she would have some liability.... Read More

You will not have to pay his tax debt, if he has one. However, if he has a tax liability that he doesn't pay, the IRS or the state could eventually place a tax lien against him. This would apply to all property that is in his name individually or jointly. That's where you come in. A tax lien could conceivably affect you, but it's pretty unlikely. Since you say your home is in both names, you couldn't sell it without his signing the deed, anyway. If you decide to get a divorce, make sure your divorce attorney knows all about his tax situation. That should be considered in distributing the property during the divorce process. Make sure you file your taxes on time and properly. I'm not sure you qualify as "head of household" if you are still married. You should look at page 5 in IRS publication 501. Here's the link. http://www.irs.gov/pub/irs-pdf/p501.pdf You may need to file an amended return. You should consult a tax professional about this, if you're unclear.... Read More

Your question does not specify whether you are talking about a state or federal income tax issue and the answers may not be the same. Further, I am assuming that your state tax return is filed in Michigan and not Florida since you have indicated this is a Michigan tax question. A "for profit" school is different than a qualified "non-profit" 501C3 organization. If the donation is to a qualified fund associated with the school, a federal tax deduction may be available whereas a donation to the "for profit" school itself will not qualify. If you made such donations in 2011, you may be able to claim a tax credit for the donation however, those types of deductions disappear for Michigan in tax year 2012.... Read More