Tax Lawyer In Madison Heights, MI

Austin & Larson Tax Resolution sees a specific pattern of tax problems from Madison Heights clients: payroll tax (Form 941) liability among small manufacturers and trade contractors, Michigan sales tax audits on retail and commercial operators, wage garnishment after years of unfiled individual returns, and accumulated estimated tax shortfalls for self-employed residents. Each of these problems has a defined resolution path, but the path narrows once the IRS or Michigan Treasury escalates.

The Madison Heights commercial mix produces real concentration in certain case types.

Small manufacturers and auto suppliers along Stephenson Highway and the I-75 corridor file Form 941 quarterly. When cash flow tightens, payroll tax withholding gets diverted to keep operations running. The IRS treats this as trust-fund money and pursues personal liability against responsible persons inside the business.

Trade contractors (HVAC, plumbing, electrical, mechanical) face the same Form 941 exposure plus quarterly estimated tax shortfalls if the business is structured as a pass-through.

Retail and commercial operators along John R Road and 12 Mile Road carry Michigan sales tax exposure. Field Audit Division of Michigan Treasury runs sales tax audits on this exact business mix.

Individual taxpayers who fell behind during the post-2020 cycle now face wage garnishment, bank levy, or accumulated CP504 and Letter 1058 notices.

No two cases look identical, but Madison Heights case work tends to cluster in these four categories. Each one has a specific response timeline and a specific resolution program that fits.

A CPA handles return preparation and examination-level audits. You need a tax lawyer in Madison Heights, MI when the matter crosses into collection, appeals, criminal exposure, or Tax Court. Austin & Larson Tax Resolution covers both sides because Bridgette Austin holds a JD plus Enrolled Agent license and Dustin Larson holds a CPA plus Enrolled Agent license. The legal and accounting workload stays in one firm.

The clearest signal that your case has crossed into tax-attorney territory is the specific notice or contact you have received. If any of the following applies, the CPA stage is over:

• IRS Letter 1153 (proposed Trust Fund Recovery Penalty assessment) or a scheduled Form 4180 interview.
• IRS Letter 1058 (Final Notice of Intent to Levy and Notice of Right to a Hearing).
• IRS CP504 (Notice of Intent to Levy your state tax refund).
• Active wage garnishment (CP90, CP297) or a bank levy.
• Three or more years of unfiled tax returns (personal or business).
• Statutory Notice of Deficiency with a 90-day Tax Court petition window.
• IRS Criminal Investigation contact, whether by Special Agent visit or document request.
• IRS appeals representation needed at a conference.
• A Michigan Department of Treasury audit notice (Field Audit Division or Office Audit Division).
• A Revenue Officer assigned to your case rather than just notice correspondence.
• Total exposure above $50,000 across federal, state, or combined.

The Madison Heights small business demographic ends up in these situations regularly. Payroll tax penalties accumulate quickly. Sales tax audits land without warning. The right move when collection has started is representation by counsel who can stand between you and the tax authorities, not a return preparer who is not licensed to represent you in collection or appeals.

The Trust Fund Recovery Penalty (TFRP) is the IRS’s mechanism for assessing unpaid payroll taxes personally against business owners, officers, bookkeepers, and other “responsible persons.” Austin & Larson Tax Resolution defends Madison Heights manufacturers, auto suppliers, and trade contractors against TFRP through three angles: challenging responsible-person status, challenging willfulness, and negotiating reduced assessment or post-assessment settlement.

When a business falls behind on Form 941 payroll deposits, the IRS does not just pursue the business. It pursues the people inside the business. The mechanism is the Trust Fund Recovery Penalty, codified in Internal Revenue Code section 6672. The IRS treats the employee-side withholding as trust-fund money. When the business does not remit, the IRS assesses the unpaid trust-fund portion against any person who meets two tests: responsibility and willfulness.

• The responsible-person test. A responsible person is anyone with the authority and duty to direct or control payment of payroll taxes. The IRS looks at check-signing authority, ability to hire and fire, payroll decision-making, financial decision-making, and bank account access. Multiple people in one business can be responsible.
• The willfulness test. Willfulness in this context does not mean criminal intent. It means knowing the taxes were unpaid (or showing reckless disregard for whether they were paid) and using available funds to pay other creditors instead. This standard is lower than most clients expect.
• The IRS process. The IRS opens a TFRP case with Letter 1153, the proposed assessment. The Revenue Officer conducts a Form 4180 interview, which is essentially a recorded interrogation about who controlled payroll decisions, who signed checks, and what the business knew about its tax obligations. The interview answers drive the responsible-person determination.
• Defense strategies. Tax Lawyer in Madison Heights, MI represents you at the Form 4180 interview itself, which alone changes the trajectory of most cases. We challenge responsible-person status where the facts support it (limited authority, lack of payment decision power, late entry into the business). We challenge willfulness where applicable (the business had no funds available, the responsible person did not know about the shortfall, professional advice was relied upon). For assessments that proceed, we negotiate reduced amounts, pursue Collection Due Process appeals, and structure post-assessment resolution.

If you have received Letter 1153 or have been told a Form 4180 interview is being scheduled, every day before the interview matters. The interview is not casual.

Can the IRS assess me personally for my business’s unpaid payroll taxes?

Yes, through the Trust Fund Recovery Penalty (TFRP). When a business fails to remit Form 941 payroll taxes, the IRS pursues the trust-fund portion (the employee withholding) directly against responsible persons inside the business. Anyone with check-signing authority, payroll decision-making, or financial control can be assessed. The standard requires both responsibility (you had the authority and duty to pay) and willfulness (you knew taxes were unpaid and used funds to pay other creditors). Austin & Larson Tax Resolution defends Madison Heights business owners against TFRP at the Form 4180 interview, during assessment review, and on Collection Due Process appeal.

What happens during a Michigan sales tax audit?

A Michigan Department of Treasury auditor requests sales records (sales journals, point-of-sale data, bank deposits, exemption certificates) for a test period, usually three to twelve months. The auditor calculates a tax error rate from the test period and extrapolates it across the full audit window of up to four years. This methodology often produces assessment math significantly higher than the actual deficiency. After the preliminary assessment, you have 30 days to respond before a Final Assessment. The Final Assessment carries a 60-day window to appeal to the Hearings Division or petition the Michigan Tax Tribunal. We represent Madison Heights operators at every stage.

Do you serve Madison Heights without a local office?

Yes. Austin & Larson Tax Resolution has three Michigan offices: Brighton, Lansing, and Saginaw. We do not have a Madison Heights office and do not pretend to. Our Brighton office is roughly 30 miles from Madison Heights and serves as the nearest in-person meeting location. Most case work happens through phone consultations, secure video meetings, and an encrypted document portal. The IRS works with your representative by mail, fax, and phone, not by physical visit, so a Madison Heights case runs identically whether the client lives in Madison Heights or in Brighton.

When do I need a tax lawyer instead of a CPA?

You need a tax alawyer in Madison Heights, MI when the matter has crossed into collection, appeals, criminal exposure, or Tax Court. Triggering events include IRS Letter 1153 (proposed TFRP), Letter 1058 (Final Notice of Intent to Levy), CP504, active wage garnishment or bank levy, three or more years of unfiled returns, a Statutory Notice of Deficiency, IRS Criminal Investigation contact, Michigan Treasury audit notice, or a Revenue Officer assignment. CPAs are excellent at return preparation and exam-level audits. They are not licensed for the collection, appeals, or Tax Court work that follows. Austin & Larson Tax Resolution covers both sides in-house.

How long does it take to resolve IRS debt?

Timelines depend on the program. An Installment Agreement under $50,000 sets up in 30 to 60 days. Currently Not Collectible status approves in 30 to 90 days. Penalty Abatement resolves in 60 to 120 days. An Offer in Compromise runs 6 to 12 months from submission to acceptance. A Trust Fund Recovery Penalty defense usually takes 4 to 9 months depending on whether the case settles at Form 4180 review, during assessment, or on Collection Due Process appeal. Active collection (wage garnishment, bank levy) pauses within 24 to 72 hours of Austin & Larson filing Form 2848 on your behalf.

Does the IRS forgive old tax debt?

The IRS has 10 years from the date of assessment to collect a tax debt. This is called the Collection Statute Expiration Date (CSED). Once the CSED passes, the IRS legally cannot collect the debt. The clock starts on the date the tax is assessed, not the year the income was earned, which means assessed taxes from older years may be closer to expiration than expected. Certain actions pause the clock: bankruptcy filings, pending Offer in Compromise reviews, and Collection Due Process appeals. We calculate exact CSED dates on every case as part of the initial transcript review, because waiting out the statute is sometimes the right play.

What if I have multiple years of unfiled returns?

Unfiled returns are common for Madison Heights clients, particularly self-employed contractors and small business owners. The IRS rule of thumb is six years for compliance, though we prepare three to ten years depending on the case. Filing missing returns is the first step in nearly every resolution path; the IRS will not accept an Installment Agreement, Offer in Compromise, or Currently Not Collectible status until you are in filing compliance. Dustin Larson and the team prepare back returns and often reduce assessed balances where the IRS has filed a Substitute for Return on your behalf with no deductions or credits claimed.

Is the consultation really free?

Yes, the initial consultation is free with no obligation to engage. It happens by phone, by secure video, or in person at our Brighton office. We review your IRS or Michigan Treasury notices, walk through the facts, and tell you straight what the realistic resolution path looks like. We do not pressure-sell, and we will not take a case where engagement does not make financial sense for the client. If your situation does not require representation, we will say so.