CPAs Point Out Convenience of Electronic Tax Payment Options

The Michigan Association of CPAs points out that there are now three convenient and secure ways to settle your tax liability without writing a check. Here is an explanation of how...

Don’t Miss These Valuable Tax Deductions

When you overlook tax deductions, you overlook tax-savings opportunities. The Michigan Association of CPAs explains that while taxpayers are generally familiar with common...

Employee Business Expenses

The Michigan Association of CPAs asks:Do you have work-related expenses that are not reimbursed by your employer? Would you like to get a tax break for those expenses? If you answered “yes” to these questions, read...

Cell Phone Customers May Be Overlooking Telephone Tax Refund

Many cell-phone users appear to be overlooking the telephone tax refund in the mistaken belief that this one-time refund only applies to land-line customers.According to the Internal Revenue Service, most cell-phone users qualify for the federal telephone excise tax refund. In most cases, the refund is also available to land-line, fax and Internet phone customers as well. The method of phone signal transmission does not affect the refund. The telephone-tax refund can add $30 to $60 — or even more — onto a taxpayer’s refund.

Failing To Pay Your Michigan Taxes

A penalty of 5 percent of the tax shall be added if the failure is for not more than 2 months, with an additional 5 percent penalty for each additional month or fraction of a month during which the failure continues or the tax and penalty is not paid, to a maximum of 25 percent

The Department of Treasury may consider an Installment Agreement for taxpayers to resolve their accounts if certain criteria are met.
Collection Division - 517-636-5265

Failing To Pay Your Federal Taxes

The interest rate the Internal Revenue Service charges on overdue taxes — currently 8 percent — may not sound too bad, said Mark Luscombe, principal tax analyst at CCH Inc. of Riverwoods, Ill. The company, a division of Wolters Kluwer, provides tax information and services to tax professionals.
"That's just the beginning," he advises. "Then you add in the penalties."
The penalty for failing to pay your taxes on time is 0.5 percent of the tax due each month, up to a maximum of 25 percent of the tax that is owed.
If you fail to file, the penalty is 10 times greater — 5 percent of the tax due each month, up to 25 percent.
The IRS offers an installment payment plan for taxpayers who qualify, and requests can be made on Form 9465, "Installment Agreement Request." But taxpayers should be forewarned that these agreements don't excuse them from late payment penalties — and there's a user fee of up to $105.
Even the IRS acknowledges this isn't a great deal, advising taxpayers: "Before requesting an installment agreement, you would consider less costly alternatives such as a bank loan."

Kiddie Tax Changes and Other Child-Related Tax Questions

Watch out. You may be paying more taxes this year if you have a teenager with unearned income or fail to claim exemptions and tax deductions that you deserve.

Michigan Association of CPAs

IRS Has $2.2 Billion For People Who Have Not Filed A 2003 Tax Return

Unclaimed refunds totaling more than $2.2 billion are awaiting about 1.8 million people who failed to file a federal income tax return for 2003, the Internal Revenue Service announced. However, in order to collect the money, a return for 2003 must be filed with an IRS office no later than Tuesday, April 17, 2007.

Michigan Taxation Of Services Under The Two-Penny Plan

Michigan Governor Granholm has proposed a two percent tax on certain services as part of a comprehensive budget and economic plan for 2007 and 2008 Fiscal Years. Under the plan some services would be taxed and others would not.
Included here is a description of those services that would be taxable and the number of other states that tax them.

Michigan Treasury