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SPECIAL ANNOUNCEMENTS
Careers
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SUCCESSION PLANNING
You've worked very hard to build your business. Have you considered the steps necessary to transition leadership to the next generation? Whether intra-family or among key members of your management team, effective succession planning is necessary to preserve the value and legacy of your company as well as your personal wealth.
Contact your UHY professional today.
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ARCHIVE
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news archive.
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 MICHIGAN TO ALLOW OFFER-IN-COMPROMISE PROGRAM
If a taxpayer has a tax liability they can't pay or if paying a tax liability would create a financial hardship, the Internal Revenue Service (IRS) and most states have programs that allow taxpayers to settle their tax debt for less that the full amount owed. These offer-in-compromise programs are subject to certain qualifications and approval by taxing authorities and are designed to benefit both the taxpayer and the government.
Until recent events, Michigan was one of only a few states that did not have an offer-in-compromise program. On June 27, 2014, Governor Rick Snyder signed legislation allowing the State Treasurer to compromise all or any part of a tax liability, including any related penalties and interest, starting January 1, 2015.
The bill gives the State Treasurer the ability to develop the program and sets out requirements for implementing the new system in order to make a consistent and fair process for all. The legislation looked to the best practices of the IRS and requires the State Treasurer to establish guidelines by modeling those published by the IRS, where appropriate.
The first item the bill addresses is the criteria for when a tax liability may be compromised. The State Treasurer may compromise all or any part of a payment of tax if one or more of the following exists:
- A doubt exists as to the liability
- A doubt exists as to the collectability if the taxpayer established both of the following: a.) the amount offered in payment is the most that can be expected to be paid or collected from the taxpayer's present assets or income, and, b.) the taxpayer does not have reasonable prospects of acquiring increased income or assets that would enable the taxpayer to satisfy a greater amount of the liability that the amount offered, within a reasonable period of time
- A federal compromise of tax under IRS §7122 has been granted for the same tax years
Additionally, the bill addresses the administrative aspects of creating this program within the state. These administrative topics focus on:
- Publishing written reports outlining the basis of each compromise and its terms
- Continued review of any compromises, including reestablishing or revocation of any compromise
- Establishing guidelines 180 days after the date of enactment for: a.) the program itself, modeled after the IRS program, b.) the officers and employees within the department to use when making decisions on whether an offer-in-compromise is appropriate, and, c.) procedures for independent review of rejections
- Public disclosure
- Additional assessment or collection
- Stay of collection while an offer is pending
- Nonrefundable minimum payments
- Rejection of offer-in-compromise not subject to further challenge
If you have any questions about offer-in-compromise programs, please contact your professional at UHY LLP in Farmington Hills 248 355 1040 or Sterling Heights 586 254 1040, or visit us on the web at www.uhy-us.com.
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| EVENTS CALENDAR
Save the date! More UHY events are just around the corner...
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| SPECIAL ANNOUNCEMENTS
Careers
Are you ready to take charge of your career path? Be sure to visit our careers page for the most up-to-date career listings or contact Amanda Sheets at asheets@uhy-us.com or 248 204 9482. Current Michigan openings include:
- Tax accountant, 4-9 years of experience, CPA required
- Audit accountant, 4+ years of experience working with municipalities
- Director of litigation, testifying experience required
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Published by UHY LLP News.
Copyright © 2013 UHY LLP. All rights reserved.
Our firm provides the information in this newsletter as tax information and general business or economic information or analysis for educational purposes, and none of the information contained herein is intended to serve as a solicitation of any service or product. This information does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisors. Before making any decision or taking any action, you should consult a professional advisor who has been provided with all pertinent facts relevant to your particular situation. Tax articles in this newsletter are not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided "as is," with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.
UHY Advisors, Inc. provides tax and business consulting services through wholly owned subsidiary entities that operate under the name of "UHY Advisors." UHY Advisors, Inc. and its subsidiary entities are not licensed CPA firms. UHY LLP is a licensed independent CPA firm that performs attest services in an alternative practice structure with UHY Advisors, Inc. and its subsidiary entities. UHY Advisors, Inc. and UHY LLP are U.S. members of Urbach Hacker Young International Limited, a UK company, and form part of the international UHY network of legally independent accounting and consulting firms. "UHY" is the brand name for the UHY international network. Any services described herein are provided by UHY Advisors and/or UHY LLP (as the case may be) and not by UHY or any other member firm of UHY. Neither UHY nor any member of UHY has any liability for services provided by other members.
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