Tax Lawyer In Birmingham, MI

Birmingham, MI clients bring tax problems that look different from average IRS cases. Austin & Larson Tax Resolution sees more closely-held business owners facing Trust Fund Recovery Penalty assessments, more executives with equity compensation complications, more multi-year audits triggered by high-income returns, and more Offers in Compromise filed against substantial asset profiles. These aren’t routine cases, and they don’t get resolved with templated approaches.

The IRS audits high-income returns at multiples of the average rate. Returns above $1 million in income are examined at roughly 8 to 10 times the rate of median-income returns, based on the most recent IRS Data Book figures. If your Birmingham return reports executive compensation, business income, complex partnerships, or substantial passive activity, you’re statistically more exposed to examination than your neighbors filing W-2-only returns. The case patterns below are what that exposure actually looks like:

Multi-year IRS audits. When the IRS opens an examination, it rarely stops at one tax year. For Birmingham professionals with consistent income patterns, an audit will typically pull two to three years into scope. One disallowed deduction or an unreported K-1 distribution can multiply across every year. We represent you at the examination, push back on auditor positions, and escalate unreasonable assessments to the IRS Office of Appeals.

Trust Fund Recovery Penalty assessments. Closely-held business owners, officers, and bookkeepers carry personal liability for unpaid 941 payroll tax through the Trust Fund Recovery Penalty (TFRP). The IRS can pierce the corporate veil and pursue you individually for the trust fund portion, even if the business has closed. TFRP defense is one of the most technical areas of tax law. The wrong answer in a Revenue Officer interview can fix personal liability that wasn’t otherwise required.

Executive compensation tax problems. Birmingham’s corporate professional class sees more equity-grant issues than the typical suburb: ISOs exercised without enough withholding, RSUs vested with mismatched basis reporting, deferred compensation distributions that trigger underpayment penalties. We work with your existing CPA where helpful and rebuild the IRS disclosure where needed.

High-asset Offers in Compromise. The IRS Offer calculation uses your monthly disposable income and your asset realizable value. For Birmingham clients with home equity, retirement accounts, business interests, and investment portfolios, the asset side of that calculation can sink an Offer that would otherwise work. Filed correctly, with the right valuation choices and exclusions, the Offer still works. Filed wrong, you’ve handed the IRS a roadmap to your finances.

Unfiled returns from busy professionals. Doctors, attorneys, consultants, and business owners who let filing slip during a busy stretch and couldn’t get caught up. The IRS sometimes files a Substitute for Return on your behalf, which is almost always worse than self-filing (no deductions, married-filing-separately rates, no credits). We file the missing returns first.

When the IRS opens a case against a Birmingham resident with substantial assets or a closely-held business, the same firm needs to handle both the legal strategy and the financial disclosures. A tax lawyer In Birmingham, MI without an in-house CPA outsources the numbers, which creates information silos. A CPA without an attorney can’t invoke full attorney-client privilege or take a case to Tax Court if it gets there.

Most tax resolution firms staff one credential, not both. Solo tax attorneys outsource accounting work. National chains staff Enrolled Agents and refer legal issues out. CPA-only firms can’t represent you in Tax Court. For routine cases, that’s fine. For Birmingham cases, it’s a problem.

Here’s why both credentials on the same case matter:

Attorney-client privilege protects sensitive information

When you tell a CPA something potentially damaging, there’s a limited “tax practitioner privilege” under IRC §7525. That privilege has real limits: it doesn’t cover criminal matters, doesn’t survive an IRS criminal referral, and doesn’t apply in state court proceedings. Attorney-client privilege is broader and stronger. For Birmingham business owners with unfiled returns, possible TFRP exposure, or potential fraud penalty risk, the difference matters before the IRS asks the first question, not after.

Tax Court access matters in complex cases

When the IRS issues a Notice of Deficiency you disagree with, you have 90 days to petition U.S. Tax Court. Only attorneys, EAs, and CPAs who have passed the Tax Court exam can practice there, and most CPAs haven’t taken it. Bridgette Austin’s JD and Tax Court eligibility means we can escalate when the IRS won’t move on a position we believe is wrong.

Financial disclosure is where most Offers fail

Form 433-A and 433-B are unforgiving of error. For Birmingham clients with home equity, retirement accounts, business interests, and investment portfolios, valuation choices and category placements can swing an Offer by tens of thousands of dollars. Dustin Larson’s CPA credential brings the accounting precision the disclosure requires.

No firm-to-firm information transfer

When the attorney sits at one firm and the CPA at another, every information exchange between them adds review cycles and creates a potential disclosure risk. Same firm, same case, same data room. That speeds resolution and reduces error.

The Austin & Larson structure

Bridgette Austin, JD, EA serves as Vice President. Dustin Larson, EA, CPA leads accounting and resolution and came up through the accounting program at Ferris State University. The firm was built around keeping both credentials on the same case for clients whose situations need both.

Hiring Austin & Larson Tax Resolution buys a specific set of things, not a generic “we’ll help you” promise. You get Power of Attorney filed within 24 hours, your IRS transcripts pulled before the first consultation, a written resolution plan at retention, and direct access to a JD/EA and an EA/CPA for the life of the case. No call center, no rotating reps, no junior staff managing the file while a senior name sits on the door.

Here’s the concrete list:

Form 2848 filed within 24 hours of retention

The IRS starts calling us instead of you the day the filing posts. Collection calls stop almost immediately.

Your IRS account transcripts pulled before the first consultation

Account Transcripts, Records of Account, and Wage & Income transcripts for every year you owe. Most clients are surprised by what’s actually on file. We walk into the consultation knowing what you actually owe and why.

A written resolution plan at retention

Which resolution path the case qualifies for, what evidence is needed, what the IRS timeline looks like, what the budget is. In writing, before money changes hands.

The same practitioners on your case from start to finish

Bridgette and Dustin work the file. No hand-off to a junior associate after the contract signs. The credentials you hired are the credentials doing the work.

Federal IRS and Michigan state tax under one engagement

Most national chains handle IRS cases only and refer Michigan Department of Treasury problems to a separate firm. We resolve federal and state in parallel with one project plan, which is faster and less duplicative.

Written closure required before the file closes

We don’t release the case until the IRS issues a written acceptance, release, or closure letter. You have documentation to keep.

A one-page compliance plan after closure

Concrete steps to stay out of future trouble, calibrated to whatever got you into this one.

Honest service-area framing

No virtual office address pretending to be a Birmingham presence. Brighton is 45 minutes west, Ann Arbor is similar, and most Birmingham work runs remotely because it’s faster.

How long does it take to resolve IRS tax debt?

Resolution timelines range from 60 days to 12 months, depending on the path. A straightforward Installment Agreement can be set up in two to three months. Currently Not Collectible status takes 60 to 90 days once financial disclosures are filed. An Offer in Compromise typically takes 6 to 9 months for IRS review, sometimes longer if the IRS requests additional documentation. The IRS pauses most collection action once your representative files Form 2848, so the financial pressure usually lifts within the first 30 days, well before the case is fully resolved.

What’s the difference between a tax lawyer and a tax preparer for a Birmingham resident?

A tax preparer files returns. A tax lawyer defends you when the IRS challenges what was filed (or wasn’t filed). Birmingham, MI residents need a tax preparer for routine annual filing. They need a tax lawyer when the IRS sends Letter 1058, opens a multi-year audit, files a federal tax lien, garnishes wages, or assesses Trust Fund Recovery Penalty against a business owner personally. Austin & Larson Tax Resolution does both functions under one roof, which matters for cases where the legal strategy and the numbers need to stay aligned.

Can a Birmingham tax lawyer stop wage garnishment?

Yes, a Tax Lawyer In Birmingham, MI can typically stop IRS wage garnishment within 24 to 72 hours. The process: your attorney files Power of Attorney (Form 2848), contacts the IRS levy unit, demonstrates that the garnishment causes financial hardship under IRS standards, and proposes an alternative resolution such as an Installment Agreement or CNC status. Austin & Larson Tax Resolution has handled emergency levy releases the same business day when a Birmingham client was facing a missed mortgage, payroll, or tuition payment. Call the moment you receive the levy notice.

Will the IRS accept an Offer in Compromise from a Birmingham, MI resident with substantial assets?

The IRS accepts Offers in Compromise based on financial reality, not geography. Acceptance hinges on three factors: your monthly disposable income, the realizable value of your assets, and your remaining Collection Statute. The IRS accepted around 32% of Offers nationally in 2023. For Birmingham residents with home equity, retirement accounts, and business interests, the asset side of the calculation is where most Offers fail. Done correctly, with the right valuation choices and exclusions, the Offer still works. Done wrong, the rejection puts your full asset profile on the IRS record.

Does Austin & Larson Tax Resolution have a Birmingham, MI office?

No, Austin & Larson Tax Resolution does not have a physical office in Birmingham. Our four Michigan offices are Brighton, Saginaw, Lansing, and Ann Arbor. The nearest to Birmingham is Brighton, about 45 minutes west by car. Most Birmingham clients work with us fully remotely because complex tax resolution is document-heavy and time-sensitive, and same-day digital exchange usually beats scheduled in-person meetings. Some clients drive out for an initial consultation. We represent Michigan clients regardless of where you physically meet.

What happens if I haven’t filed tax returns in years?

You’ll need to file before the IRS will negotiate. No resolution path (Offer in Compromise, Installment Agreement, CNC) is available to a non-filer. The IRS sometimes files a Substitute for Return on your behalf, which is almost always worse than what you’d file yourself (no deductions, married-filing-separately rates, no credits). Austin & Larson Tax Resolution prepares the back returns first, gets you into compliance, then opens the resolution conversation. Six years of unfiled returns is the typical IRS minimum to come into compliance.

Can a Birmingham tax lawyer help with Michigan state tax debt, not just IRS problems?

Yes, a Tax Lawyer In Birmingham, MI handles Michigan Department of Treasury cases alongside federal IRS problems. State collection in Michigan can be more aggressive than federal in some respects. The state can intercept your refund, suspend professional and driver licenses for unpaid tax debt, and place liens on Michigan property faster than the IRS in many cases. Austin & Larson Tax Resolution files Michigan Form 151 (the state Power of Attorney), negotiates payment plans with the Treasury’s Collections Bureau, and pursues Offer in Compromise equivalents under Michigan tax law. Most clients owe both authorities.

Does the IRS just forgive old tax debt automatically?

The IRS does not forgive tax debt automatically, but tax debt does expire. Each tax year carries a 10-year Collection Statute Expiration Date (CSED). After 10 years from the date the tax was assessed, the IRS can no longer collect on that year. Certain events pause the clock: bankruptcy filings, Offers in Compromise under review, certain appeals, and time out of the country. A Birmingham tax attorney pulls your IRS account transcripts and tells you the exact expiration date for each year you owe.