Showing 16 posts in Sales Tax.
Failure to Follow Michigan Tax Requirements Creates Personal Liability for Corporate Officers
A commonly-recognized feature of
many business entities is the "shield" that protects officers,
members, managers, and partners from personal liability for the business's
actions. However, that "shield" does not protect the officers of a
company from all liability. Importantly,
if a business fails to pay its taxes, then the key officers of the business can
be held personally liable for the unpaid taxes of the business. Read More ›
Categories: Compliance, Sales Tax, Tax
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Are you missing out on these exemptions?
There have been several recent tax changes to Michigan tax law. New exemptions may be valuable to you. Consult a tax professional for advice as to how to make the most of available tax benefits.
Sales Tax Exemption for Vehicle Trade-Ins
Starting Dec. 15, 2013, up to $2,000 of the value of a motor vehicle or recreational vehicle traded-in to pay for a new or used motor or recreational vehicle may be exempt from sales tax. The agreed-upon value must be separately stated. Starting Jan. 1, 2015, the exemption limit is increased by an additional $500 per year.
Use Tax Exemption for Vehicle Trade-Ins
Also starting Dec. 15, 2013, up to $2,000 of the value of a motor vehicle or recreational vehicle traded-in to pay for a new or used motor or recreational vehicle may be exempt from use tax. Learn about other exemptions here>
Restaurant Owner Held Personally Liable for Unpaid Sales and Use Taxes
On May 23rd, the Michigan Court of Appeals upheld a tax tribunal decision that held a restaurant owner personally liable for unpaid taxes, even though that owner had minimal involvement in the preparation of those taxes. Griffin, Jr. v. Dep't of Treasury. The restaurant had failed to pay its sales and withholding tax liabilities for four months, resulting in bills for the unpaid taxes, penalties, and interest on the overdue amount. Based on MCL 205.27a, the Department of Treasury sought to hold the restaurant owner personally liable for the tax bill. Why was an individual liable for the unpaid taxes of a business? ›
Categories: Sales Tax, Use Tax
Navigating the Audit Appeal Process
Every year, the Michigan Department of Treasury audits Michigan businesses for compliance with the Sales and Use tax laws. Oftentimes, those audits result in tax assessments that are disputed by the taxpayer. But, how does a taxpayer navigate the audit process and challenge a tax assessment?
Let’s take a look at the basics. Read More ›
Categories: Sales Tax, Use Tax
Tug Boat Case Clarifies Bounds of Use Tax
Suppose you visit your local electronics store and purchase a new TV. You pay for the TV, but notice that the retailer did not charge sales tax. Are you now liable for use tax?
The answer is “no” according to a recent Court of Appeals ruling. Andrie, Inc. v. Department of Treasury. But, let’s look at the details. Read More ›
Categories: Sales Tax, Use Tax
Officers Beware! Personal Liability for Unpaid Sales and Use Tax
Most business owners are familiar with the concept of "piercing the corporate veil" – that legal theory whereby owners and officers may be personally liable for the obligations of a corporation. However, personal liability may also be imposed in the sales and use tax arena. Read More ›
Categories: Sales Tax, Use Tax
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