Tax Lawyer In Ferndale, MI

A Ferndale tax lawyer from Austin & Larson Tax Resolution provides full representation between you and the IRS or the State of Michigan. We file Form 2848 (Power of Attorney), which routes every collector call and letter through our office. We stop active collection, file missing returns, defend audits, negotiate resolution programs, and appear on your behalf in IRS appeals or Tax Court when the case requires it.

A return preparer prepares returns. A tax lawyer in Ferndale, MI represents you against the tax authorities once collection has started or once the matter has legal exposure. The difference matters most after the IRS escalates to a levy, an audit, an appeals window, or a Tax Court petition deadline. Once you sign Form 2848 with our office, we are the one talking to the IRS. You go back to running your restaurant, your freelance work, or your job.

The IRS offers several formal programs for resolving tax debt, and the right one depends on income, assets, and total balance. Austin & Larson Tax Resolution pulls your IRS account transcripts, runs the financial analysis (Form 433-A or Form 433-B), and recommends a path before any program is filed. Common options for Ferndale clients are Currently Not Collectible status, Installment Agreement, Offer in Compromise, Penalty Abatement, Innocent Spouse Relief, and CSED expiration strategy.

Currently Not Collectible (CNC). Pauses IRS collection when you cannot pay anything without falling below allowable living expense standards. Wage garnishments and levies stop. Penalties and interest continue accruing. CNC is often the first option for Ferndale freelancers and gig workers with minimal assets, unstable income, and high tax balances relative to net worth. Approval timeline: 30 to 90 days.

Installment Agreement (IA). Monthly payment plan. Streamlined IAs under $50,000 approve in 30 to 60 days with limited documentation. Partial-pay IAs (where the monthly payment will not cover the full debt before the collection statute expires) require Form 433 financial disclosure but often close the case for less than the full balance.

Offer in Compromise (OIC). Settles the debt for less than the full amount owed when the IRS agrees you cannot pay it in full. Filed on Form 656 with Form 433-A (OIC). The IRS calculates Reasonable Collection Potential from your disposable income and asset equity. Most accepted OICs settle between 10 and 40 cents on the dollar. Timeline: 6 to 12 months from submission. Acceptance rate is roughly 30 percent, which is why financial analysis before filing matters.

Penalty Abatement. Removes failure-to-file, failure-to-pay, and accuracy-related penalties. First-Time Abatement applies if you have a clean compliance history. Reasonable Cause abatement applies for documented illness, disaster, hardship, or reliance on professional advice.

Innocent Spouse Relief. Removes joint liability for tax problems attributable to your spouse or ex-spouse. Filed on Form 8857, generally within two years of the IRS beginning collection against you.

CSED expiration strategy. The IRS has 10 years from the date of assessment to collect a tax debt. Once the Collection Statute Expiration Date passes, the debt is legally uncollectible. Certain actions pause the clock (bankruptcy, pending OIC, Collection Due Process appeals). We calculate exact CSED dates as part of the initial transcript review on every case.

You need a tax lawyer in Ferndale, MI when the matter has crossed into collection, appeals, criminal exposure, or Tax Court. A CPA prepares returns and handles examination-level audits. A tax lawyer handles the work that follows. 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 specific triggers that move a Ferndale case from CPA work to attorney work:

• IRS Letter 1058 (Final Notice of Intent to Levy) or CP504.
• Active wage garnishment, bank levy, or social security levy.
• IRS Letter 1153 (proposed Trust Fund Recovery Penalty) or a scheduled Form 4180 interview, common for restaurant and bar owners.
• A Michigan Department of Treasury sales tax audit notice or assessment.
• Three or more years of unfiled returns, common for gig and 1099 workers.
• A Form 1099-K from a payment processor that you cannot reconcile against your records.
• Statutory Notice of Deficiency with a 90-day Tax Court petition window.
• IRS Criminal Investigation contact, whether by Special Agent visit or document request.
• Revenue Officer assignment rather than just correspondence.
• Total exposure above $50,000 across federal, state, or combined.

For Ferndale’s small business and gig economy demographic, the most common triggers are Form 1099 surprises (a 1099-K from PayPal, Stripe, Etsy, or DoorDash that the worker did not expect) and restaurant payroll tax issues that lead to TFRP exposure. Both demand representation, not return preparation.

Can the IRS audit my Ferndale restaurant for unreported tips?

Yes. Restaurant and bar tip income audits are one of the most active IRS audit categories. The IRS reviews Form 8027 filings for restaurants with more than 10 employees on a typical business day. When reported tips fall below 8 percent of gross receipts, the IRS requires an allocation across tipped employees, and discrepancies between the allocation and what employees reported produce audit triggers. Cash-heavy bars and restaurants get audited at higher rates because of historical under-reporting patterns. Austin & Larson Tax Resolution defends Ferndale restaurant owners through Form 8027 audits, FICA tip recalculation, and the broader payroll audit work that often follows.

Do I need to file taxes on my DoorDash, Uber, or Etsy income?

Yes. Any platform that pays you more than $600 in a year issues a Form 1099-NEC. Payment processors that handle more than the current Form 1099-K threshold issue a Form 1099-K. The IRS sees every one of these through its matching program. Self-employment tax (15.3 percent on net earnings) applies on top of income tax. Quarterly estimated tax (Form 1040-ES) is required. Austin & Larson Tax Resolution prepares back returns for Ferndale gig workers with multiple years of unreported 1099 income, and negotiates payment programs that fit irregular gig income.

Do you serve Ferndale, MI without a local office?

Yes. Austin & Larson Tax Resolution has three Michigan offices: Brighton, Lansing, and Saginaw. We do not have a Ferndale office. Our Brighton office is roughly 32 miles from Ferndale and serves as the in-person meeting location for Ferndale clients. Most case work happens through phone, secure video, and an encrypted document portal. The IRS works with your representative by mail, fax, and phone, not by physical visit, so a Ferndale case runs identically to a case for a client who lives 5 minutes from the Brighton office.

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

You need a tax attorney when the matter has moved past return preparation into collection, appeals, criminal exposure, or Tax Court. Triggering events include IRS Letter 1058 (Final Notice of Intent to Levy), CP504, active wage garnishment or bank levy, IRS Letter 1153 (proposed Trust Fund Recovery Penalty), three or more years of unfiled returns, a Form 1099-K from a payment processor that you cannot reconcile, a Statutory Notice of Deficiency, IRS Criminal Investigation contact, or a Michigan Department of Treasury audit notice. CPAs are excellent at return preparation. They are not licensed for the work that follows collection. Austin & Larson Tax Resolution covers both sides in-house.

How long does it take to resolve IRS tax debt?

Timelines depend on the program. Currently Not Collectible status approves in 30 to 90 days. An Installment Agreement under $50,000 sets up in 30 to 60 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 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.

What if I have multiple years of unfiled returns?

Unfiled returns are one of the most common situations our Ferndale gig and freelance clients bring us. The IRS rule of thumb is six years for filing 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 Substitute for Returns on your behalf without claiming deductions or credits.

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 when the tax is assessed, not when the income was earned. Certain actions pause the clock: bankruptcy filings, pending Offer in Compromise reviews, and Collection Due Process appeals. Many older debts are closer to expiration than people realize. Austin & Larson Tax Resolution calculates exact CSED dates on every case as part of the initial transcript review.

Is the consultation actually 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 directly.