Successful Challenge, Michigan Department of Treasury, Property Tax

Keep track of your property tax information, sometimes even the State gets it wrong.

The State of Michigan will revoke your property tax exemption for a variety of reasons.  This becomes a problem if the taxpayer does not know what the necessary steps are to correct the problem when the taxpayer is rightfully entitled to the exemption.

In this particular example, the process took so long, the taxpayer had to pay the full for an additional year, then file a claim for a recovery after the State conceded.

The taxpayer had a large parcel that had been owned in the family for many years, and had subsequently parceled it out into many smaller pieces.

A relative lives in one of the parcels and claimed the exemption, then Michigan's computer picked it up as if the taxpayer had taken a claim that they shouldn't have.

It took aerial photography, and and lot of colored markers; plus letters from taxpayer's neighbors to show the State that the taxpayer's claim was legitimate.

As you can see the case involved 2009 through 2012 and was not resolved until November 2013.

If the taxpayer did not maintain careful records of his parcel and the subsequent carving it up, as well as maintaining good relations with the neighbors, this would have been a very difficult case, and may not have had a good outcome.

Michigan Scam Alert - Michigan Corporate Services

Doug Zandstra CPA, Grand Rapids, Michigan
Several of my clients have recently received this official looking document.
It is a Scam - see my notes

Documentation of business or medical expenses - What does the CPA Need, What doesn't the CPA need

Basic questions are sometimes the trickiest to answer

Occasionally I am asked "what do I need for my expenses such as medical or work related expenses"

My answer is two-fold

1.  For me to prepare your tax return, I need a summary, or running total of your expenses that are paid.  I do not need the receipts, but if you are audited, you will need to provide them to support your deduction.

2.  For your records, you need to keep the receipts and documentation that support your deduction.  You need to keep these for at least 3 years, I suggest 7 years.

It is important that you do not "double-dip" For example; health insurance paid by your employer is already not taxed (on your) W-2; therefore, do not include this in the running total of your medical expenses, you do not want to double deduct your expense.

As a tax practitioner, I am not required to review every receipt used to substantiate your deduction.  My policy is that if you give it to me, I will review it.  If you are unsure, then either call me for clarification or simply include it with your tax return records, and then I will review it.  This of course will cost you for the time that will be needed to summarize your information for the tax return

If you give me a total without a substantiation, the I assume that you are aware of what is deductible and what is not, and that what you are providing me is accurate.

Quarterly Estimated Tax Payments

When I prepare your tax returns, I include your estimated tax payment coupon vouchers, and envelopes with the returns.

We make it simple and easy, just remember to send in the check. (I am working on an automated reminder system that will hopefully be in place soon for those who are absent minded)

Perhaps you sell some stock at a large gain, or other financial circumstances change during the year, you should contact me to adjust your quarterly estimated tax payments to avoid surprises next April.  

If I have not prepared your tax returns, and you need to know about estimated tax payments, here are the basics:

If you are Self Employed and expect to owe more then $1,000.00, you should make quarterly estimated tax payments

Quarterly Payments are due:

First Quarter - April 15
Second Quarter - June 15
Third Quarter - September 15
Fourth Quarter - January 15

There is a really simple and accurate calculator at the H&R Block website

The calculator does not cover State or Local income taxes.

The coupons you can use to send in your estimated tax are at the IRS Website

If you are planning to become a tax client next year, contact me for additional assistance.

EZ way to email, set and appointment or upload files to me

During tax season, I set up a rather simple way to schedule appointments.  The system allows you to see what my availability, then you can schedule your own appointment.  The system then sends reminders for appointments via email and text.  You can also cancel or reschedule your appointment.

It eliminates phone calls, reminders, missed appointments and general confusion.

You can also upload files to me, as well as send messages.

It is located on my website, but there is also a web page that is dedicated to using it.

CLICK HERE

How to check the status of your Federal and Michigan Refund

If you are wondering how to check the status of your refund, when you will your check, or if you asked for direct deposit, when you can expect the money to be deposited, there is an easy way to check

For your federal refund, have your return in front of you, you need:

The Social Security Number
Filing status
Exact Federal refund amount

<<FEDERAL STATUS CLICK HERE>>


For your Michigan refund you need

Social Security Number
Exact Michigan Refund Amount
Tax Year
Adjusted Gross Income
Filing Status
How the return was submitted (electronically)
The approximate date that it was filed or mailed

<<MICHIGAN STATUS CLICK HERE>>

2014 Tax Extensions

April 15 is almost here.  We are already filing extensions for our clients.

We also have provided instructions for non-clients

For information click here <<<EXTENSIONS>>>