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Michigan Tax Conference November 8, 2007 Michigan Tax Collections: Update on Tax Collection Matters in Michigan

Michigan Tax Conference November 8, 2007 Michigan Tax Collections: Update on Tax Collection Matters in Michigan. Michael Reynolds , Administrator, Michigan Department of Treasury – Collection Division Wayne D. Roberts , Attorney, Dykema Gossett, PLLC wroberts@dykema.com.

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Michigan Tax Conference November 8, 2007 Michigan Tax Collections: Update on Tax Collection Matters in Michigan

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  1. Michigan Tax ConferenceNovember 8, 2007Michigan Tax Collections:Update on Tax Collection Matters in Michigan Michael Reynolds, Administrator, Michigan Department of Treasury – Collection Division Wayne D. Roberts, Attorney, Dykema Gossett, PLLC wroberts@dykema.com Important Note: This presentation is not be construed as promulgated rules, bulletins or rulings of the Department and are subject to revision pursuant to the effect of legislation, court decisions, regulations and official statements of the Department.

  2. Michigan Tax Collections • Age of Systems in Use • Accounts Receivable – approaching 20 years old • MARCS; Collection system; approaching 10 years old Important Note: This presentation is not be construed as promulgated rules, bulletins or rulings of the Department and are subject to revision pursuant to the effect of legislation, court decisions, regulations and official statements of the Department.

  3. Michigan Tax Collections • Collection Perspective • One stop shopping • Firm/fair Important Note: This presentation is not be construed as promulgated rules, bulletins or rulings of the Department and are subject to revision pursuant to the effect of legislation, court decisions, regulations and official statements of the Department.

  4. Events in FYE 2003 • Additional resources authorized for the Collection Division • Officer Liability: LLC June 24, 2003 • Driver Responsibility Fee Important Note: This presentation is not be construed as promulgated rules, bulletins or rulings of the Department and are subject to revision pursuant to the effect of legislation, court decisions, regulations and official statements of the Department.

  5. Michigan Tax Collections • Corporate Officer • Dedicated resources available • Assessment process • Informal Conference • Bankruptcy; Primary business account • Bankruptcy; Secondary account • Collection tools Important Note: This presentation is not be construed as promulgated rules, bulletins or rulings of the Department and are subject to revision pursuant to the effect of legislation, court decisions, regulations and official statements of the Department.

  6. Michigan Tax Collections • Installment Agreements • Allowed with limited flexibility in terms • Seasonal basis – capacity exists to create and efficiently monitor a seasonal agreement • Variable payments monthly • Monitoring of installment agreement • Statutory restrictions Important Note: This presentation is not be construed as promulgated rules, bulletins or rulings of the Department and are subject to revision pursuant to the effect of legislation, court decisions, regulations and official statements of the Department.

  7. Michigan Tax Collections • Collection Tools • Letter and phone calls • Field staff personal contact of active businesses and related accounts; Individual and business • Levies and Liens • Corporate officer levies and liens Important Note: This presentation is not be construed as promulgated rules, bulletins or rulings of the Department and are subject to revision pursuant to the effect of legislation, court decisions, regulations and official statements of the Department.

  8. Michigan Tax Collections • Effect of Collection Tools • Corporations and Individuals outside of Michigan boundaries • Lien in Ingham county • Obtain judgment in Michigan • Enter judgment in other states • Collection actions with the other states Important Note: This presentation is not be construed as promulgated rules, bulletins or rulings of the Department and are subject to revision pursuant to the effect of legislation, court decisions, regulations and official statements of the Department.

  9. Michigan Tax Collections • Financial Considerations: Ability to Pay • Active Business • Discontinued Business • Individuals • Specific statutory requirement on repayment Important Note: This presentation is not be construed as promulgated rules, bulletins or rulings of the Department and are subject to revision pursuant to the effect of legislation, court decisions, regulations and official statements of the Department.

  10. Michigan Tax Collections • Contract for Second Collection Effort • Executive Order 2007-15 • Adds a level of complexity in account assignment & administration • Systems changes needed to handle another contract Important Note: This presentation is not be construed as promulgated rules, bulletins or rulings of the Department and are subject to revision pursuant to the effect of legislation, court decisions, regulations and official statements of the Department.

  11. Michigan Tax Collections • Replacement Systems • Replacing both will be resource intensive • Timeline with other Treasury system initatives • Future of Collections • Payments Through the Web Important Note: This presentation is not be construed as promulgated rules, bulletins or rulings of the Department and are subject to revision pursuant to the effect of legislation, court decisions, regulations and official statements of the Department.

  12. Michigan Tax Collections • Derivative Liability Cases • Officer Liability MCL 205.27a(5) • Purpose (consider equity owner versus salaried “officer”) • Prima Facie Case • Caselaw Developments • Key Questions For Potential Officers Important Note: This presentation is not be construed as promulgated rules, bulletins or rulings of the Department and are subject to revision pursuant to the effect of legislation, court decisions, regulations and official statements of the Department.

  13. Michigan Tax Collections • Derivative Liability Cases • Successor Liability MCL 205.27a(1) • Purpose • Cases • Future Important Note: This presentation is not be construed as promulgated rules, bulletins or rulings of the Department and are subject to revision pursuant to the effect of legislation, court decisions, regulations and official statements of the Department.

  14. Michigan Tax Collections • Conclusion/Questions • Michael Reynolds, Administrator, Michigan Department of Treasury – Collection Division • Wayne D. Roberts • Dykema • 300 Ottawa Avenue, Ste 700 • Grand Rapids, Michigan 49503 • wroberts@dykema.com Important Note: This presentation is not be construed as promulgated rules, bulletins or rulings of the Department and are subject to revision pursuant to the effect of legislation, court decisions, regulations and official statements of the Department.

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