Austin & Larson Tax Resolution
Tax Lawyer In Bay City, MI
Bay City is one of the few mid-size Michigan cities with no city income tax. That does not make it a cheap place to owe money. A Bay City taxpayer who falls behind is dealing with the IRS, the Michigan Department of Treasury, and in a property case the Bay County Treasurer, and none of the three talk to each other. Austin & Larson Tax Resolution works IRS and State of Michigan tax debt from our Saginaw office at 4901 Towne Centre Rd., Ste 215, one county south. Tax attorneys, IRS Enrolled Agents and CPAs. One file, one point of contact.
Bay City has no city income tax. Saginaw does. Your employer decides which applies.
Bay City does not levy a city income tax. The Michigan Department of Treasury publishes the list of Michigan cities that do, and there are 24 of them. Bay City is not one. Saginaw is.
A city income tax follows the job, not the house. So the question is where your employer sits, not where you sleep. A Bay City resident who drives to a Saginaw employer files a Saginaw non-resident return on the income earned inside Saginaw city limits, then a Michigan MI-1040 on everything, then a federal 1040 on top. Three returns, three taxing authorities, one taxpayer who never left Bay County.
The reverse is easier to miss. Move to a Bay City employer and one of those filing obligations disappears. People carry the old withholding for years after the reason for it ended.
Something similar happens a level up. Michigan assesses, collects and settles its own tax debt on its own schedule, so an IRS balance paid in full leaves a state balance sitting exactly where it was. People clear the federal side, assume the matter closed, and get a Michigan Treasury notice 8 months later on the same tax year.
Tax Debt is Often
Intimidating
Frustrating
Confusing
Embarrassing
Stressful
… But it Doesn’t Have to Be
The nearest IRS office to Bay City is in Saginaw
There is no IRS Taxpayer Assistance Center in Bay City. The IRS operates Michigan centers in Saginaw, Flint, Grand Rapids, Detroit, Traverse City and Marquette, all by appointment only through 844-545-5640. Saginaw is the closest to Bay City, at 4901 Towne Centre Rd.
Michigan Treasury is further away again. Its 7 public field offices are Detroit, Escanaba, Flint, Grand Rapids, Sterling Heights, Traverse City and the Dimondale operations centre. Nearest to Bay City is Flint, at 125 E. Union St, two counties south.
Our Saginaw office is at 4901 Towne Centre Rd., Ste 215, in the same building. The Vanguard Building is a 3-storey multi-tenant office block, and the nearest IRS counter to Bay City and the people who would sit on your side of it work out of the same address.
That is the same office behind our Saginaw tax lawyers page. We also meet clients in Brighton, Lansing and Jackson, and most of a resolution file runs by phone, mail and power of attorney anyway. Geography matters less than it did. It still matters when a revenue officer wants a face.
What Austin & Larson handles for Bay City and Bay County
Our work is IRS and State of Michigan tax debt: liens, bank levies and wage garnishments, revenue officer cases, Offers in Compromise on both sides, installment agreements, currently not collectible status, unfiled returns, payroll tax liabilities and trust fund recovery penalties, audit representation, and Michigan Treasury assessments and collection notices. A Michigan state tax lien is worked separately from a federal one.
The team is tax attorneys, IRS Enrolled Agents and CPAs in one firm. That combination matters for a reason: an Enrolled Agent and a CPA can both represent you before the IRS, but attorney-client privilege attaches to the attorney. When a case has any chance of turning from a collection problem into an examination or a criminal referral, that distinction stops being academic.
We take the whole file. One power of attorney, one person you call, one set of transcripts, one plan across both governments.
What We Do | Tax Resolution
Offer In Compromise
Installment Agreements
Non-Collectable Status
Compliance
Revenue Officer Representation
Levies & Wage Garnishments
Bankruptcy
Audit Representation
Tax Return Preparation
Handling tax resolution may feel daunting, but with our expert guidance, you'll experience relief knowing seasoned professionals are by your side. At Austin & Larson Tax Resolution, our experienced Michigan tax lawyers are dedicated to delivering the reassurance and help you deserve. Well-regarded for their expertise and in-depth understanding of Michigan State tax regulations, our proficient tax relief lawyers provide a full spectrum of services, from thorough consultations to exceptional legal advocacy, all focused on securing the most favorable resolution to your tax matters.
Three IRS changes in 2026 that change your options
The IRS rewrote two of its most commonly used relief programs this year. Advice written before July 2026 is now wrong on both.
First Time Abate is being replaced. On 8 July 2026 the IRS announced Automatic Exemption from Penalty, or AEP. It replaces the old First Time Abate process. Under FTA you had to ask and someone reviewed it. AEP is systemic: qualify and the IRS applies it and sends a notice saying so, no request from you. It covers failure to file, failure to pay and failure to deposit, and the test is still a clean 3 prior years. AEP fully replaces FTA for returns with original due dates on or after 1 January 2027. Reasonable cause relief is unchanged and still has to be asked for.
The everyday IRS payment plan has a new name. Internal Revenue Manual 5.14.1, revised 20 July 2026, renamed the streamlined installment agreement the Simple Payment Plan. Individuals and out-of-business sole proprietors qualify at an aggregate unpaid balance of $50,000 or less, business trust fund cases at $25,000 or less. A Simple Payment Plan carries no federal tax lien determination, which is the part that matters if you are refinancing a house on Center Avenue and cannot have a lien on the title.
Passport certification sits at $66,000 for 2026. Cross that line in seriously delinquent federal tax debt and the IRS can certify it to the State Department, which stops your passport application. It was $64,000 in 2025 and indexes every year.
Worth knowing what the phone queue looks like while you decide. The National Taxpayer Advocate’s 2026 mid-year report to Congress found the IRS answered 21% of the 48.1 million calls it took in the 2026 filing season. On the Installment Agreement and Balance Due line, the one a person with a tax debt actually calls, 31% were answered and the average hold was 45 minutes.
What happens on the first call
The consultation is free, and it is a conversation rather than a screening script. We ask what notice you received and when, which agency sent it, what years are involved, and whether every return is filed. That last one decides more than people expect. Neither the IRS nor Michigan Treasury approves a settlement or a payment plan while returns are missing, so an unfiled 2023 return stops a 2019 resolution cold.
If you retain us we file a power of attorney, pull your IRS account transcripts and your Michigan account, and read what the file says rather than what the notice says. Then we tell you the range of outcomes the numbers support. From that point we are the contact for the taxing authority.
Looking For A Fresh Start in Michigan?
We Are Here To Help!
Should the weight of tax debt be pressing down on you, we urge you to connect with us to avail of a no-cost
consultation. Our objective revolves around untangling tax debt complexities for clients entangled in an array of
tax-related dilemmas. It would bring us immense satisfaction to furnish you with solutions to your inquiries and aid
you in swiftly settling your tax debt matters.
Our Process | Simple, Fast & Stress Free
Step 1: Initial Contact
During your first call to our office, we will ask you a brief
background of your current tax situation and determine the
most convenient office location for your free initial
consultation.
Step 2: Free Consultation
We will meet with you to review and discuss your individual
facts and circumstances to create a customized tax relief plan
for your situation and the next steps to take to resolve your tax
situation.
Step 3: Begin Resolving Debt
Once we have decided to move forward, we will immediately begin working with the IRS on your behalf to resolve your
case as quickly as possible. We will also provide advice and the steps you need to take to ensure you do not acquire
any additional debt while we work to settle your case. From the moment you retain our firm, we will be your voice with
the IRS and the point of contact for all taxing entities.
Step 4: Monitor Case Status
Some tax debt cases can be resolved quickly, while others may
have quite a bit of back and forth contact with the IRS to reach
full resolution. We will regularly monitor your case and keep
you in the loop along the way so you are never left in the dark.
Step 5: Tax Freedom!
It is our goal not only to resolve your current tax debt but also
to make sure that you don't have any further tax problems.
After we have reached resolution with your case, you will be
fully equipped with best practices to avoid future tax issues of
any kind.
Frequently Asked Questions
Is there a tax lawyer in Bay City, MI?
Bay City has no IRS office and no Michigan Treasury field office. The nearest IRS Taxpayer Assistance Center is in Saginaw. Austin & Larson Tax Resolution serves Bay City and Bay County from our Saginaw office at 4901 Towne Centre Rd., Ste 215, one county south, with tax attorneys, IRS Enrolled Agents and CPAs on staff.
Does Bay City have a city income tax?
No. Michigan Treasury lists 24 cities that levy one and Bay City is not among them. Saginaw is, so a Bay City resident working for a Saginaw employer files a Saginaw non-resident return on the income earned inside Saginaw city limits.
Do I need a tax attorney, or is an Enrolled Agent enough?
Attorneys, Enrolled Agents and CPAs can all represent you before the IRS. The difference is attorney-client privilege, which attaches only to the attorney. If a case could move from collection into examination or a criminal referral, use an attorney. For a plain balance with a payment plan, an Enrolled Agent is usually enough.
How long can the IRS collect from me?
10 years from the date the tax was assessed, subject to events that pause the clock such as a pending Offer in Compromise or a bankruptcy. Michigan runs its own, shorter clock to assess and a longer one to sue for collection, and the periods differ by tax and by year. Check yours before assuming the state has run out of time.
Why does my county matter to an IRS payment plan?
Because the IRS Collection Financial Standards set housing and utility allowances county by county. Food, clothing and out-of-pocket health care are national figures, but a Bay County household is measured against a Bay County housing allowance. That figure feeds directly into what the IRS treats as your ability to pay, so it moves both the monthly number on an installment agreement and the threshold an Offer in Compromise has to clear.
Will an accepted federal Offer in Compromise clear my Michigan tax debt?
No. Separate programs, separate governments. Michigan’s Offer in Compromise came from Public Act 240 of 2014 and is filed on Form 5181 on 3 statutory grounds. An accepted IRS offer leaves the Michigan balance untouched.
What happens if I ignore a Michigan Treasury notice?
Michigan can issue a state tax lien, levy a bank account, garnish wages and intercept your state refund. A state lien filed in Bay County is public record and follows real property the way a federal lien does.
My Bay City property taxes are delinquent. What is the timeline?
Unpaid city taxes turn over to the Bay County Treasurer on 1 March with a 4% administrative fee and 1% monthly interest. Forfeiture follows 1 March the next year, interest rising to 18% a year retroactive to the previous March. Redemption ends 31 March of the third year, when title vests in the county.
Can you appeal my property assessment?
No. Residential appeals go to the March Board of Review first, then to the Michigan Tax Tribunal. Different practice. We handle what the IRS and Michigan Treasury are collecting.
Someone called claiming to be the IRS and demanded immediate payment. Is that real?
No. The IRS states that it never calls to demand payment on the spot, threaten arrest, or tell you about a refund. Hang up and report the call to the Treasury Inspector General for Tax Administration on 800-366-4484.
What does representation cost?
It depends on which agency is collecting, how many years are open and whether returns are missing. We quote after the consultation, once we have read the transcripts.
Talk to a tax lawyer about your Bay City file
Behind on the IRS or the State of Michigan? Call (866) 668-2953 or request a free consultation. Austin & Larson Tax Resolution, 4901 Towne Centre Rd., Ste 215, Saginaw, MI 48604. Serving Bay City, Essexville, Bangor Township, Monitor Township and Bay County.
Weekdays 8am-6pm
Brighton, Saginaw, Lansing, and Jackson, MI
Call Us Today or Fill Out The Form
Fill out the form below or give us a call today to speak with one of our tax experts!
Learn From The Experts
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