An audit notice means the state is closely examining your payroll records, worker classifications, and tax remittances. Without experienced counsel, auditors can expand their investigation, leading to inflated assessments based on estimates. We intervene to control the audit and protect your rights as an employer.
We challenge the state's assumptions about your business operations. Our defense focuses on ensuring auditors correctly apply Michigan's complex withholding laws to your specific situation.
We handle all communications and document requests from the Treasury. This prevents missteps and protects you from providing information that could be misinterpreted against your company.
If the audit results in an unfair assessment, we are prepared to fight it. We represent employers in informal conferences, before the Michigan Tax Tribunal, and in negotiations with the Attorney General.
Penalties can often exceed the actual tax owed. I build strong arguments for penalty abatement based on reasonable cause, saving your business substantial amounts.
Improperly managing a withholding audit creates serious problems. The Michigan Department of Treasury can issue estimated assessments far higher than what you actually owe. They can file tax warrants that function as liens against your business property and levy or garnish bank accounts pursuant to a tax warrant, freezing your assets and disrupting operations.
We frequently represent businesses facing scrutiny for worker misclassification, in which the state believes employees were improperly paid as independent contractors to avoid withholding taxes.
Other common triggers include unreported cash payments, payroll system errors, and a history of late or missing withholding returns. The state also cross-references W-2 and 1099 filings with income tax returns, and any discrepancies can prompt an investigation.
Speaking with a Michigan Treasury auditor without legal representation can significantly limit your defense options. Call our office at (248) 262-3400 to schedule a case review of your withholding tax audit.
"Their professionalism and dedication were evident in how meticulously they handled every aspect of my case."
- Bernard A.
