Michigan Tax

[jlb825]

HELP!!

Have any o/o received a letter from the state of Michigan wanting you to pay taxes to Michigan for business done there?

If so how are you handling it? I phoned them several weeks ago and told them I had no idea what was done in Michigan because there wasn't any need to keep track of it. I was told I had better find out. My arguement is that the company we run for should pay the tax since they provide the work and the bill of ladings have their name on them. Also we get paid in Ohio not Michigan. We already have to pay tax to Ohio based on how much revenue we generate.

We received another letter today threatening us with penalties and criminal action if we don't comply.

Thanks for responding.

 

[Tennesseahawk]

I'm assuming you live in Ohio. What kind of work do you do? Are you an expediter thru the 48? Or are you a local Ohio driver who occasionally goes into Michigan? Did Michigan tell you which tax code you have to abide by? If not, find out. When you know which one, find out from your company. Or, talk to your accountant, if you have one.

I've never heard of a state going after interstate drivers. That's an IRP and IFTA issue. However, if you're inTRAstate Ohio, you may have to pay something. Or, it could be a mistake on Michigan's part. Whatever the case, you have some homework to do. Get that tax code.

-Vampire Super Slooth Trucker!!!

 

[greg334]

This cr*p again?

VERY IMPORTANT When ever you call or talk to anyone at the state level about this, get a name and put it to paper - with the number and any information you are given.

Also as t-hawk mentioned, get the tax code that this is supposed to be under.

Michigan will create policies to capture money, like when you order something from Michigan, they sent out thousands of letters out trying to claim sales tax for people out of state, which is still against Federal law.

 

[Dreamer]

Hey guys,

I'm out of sync a bit, but any chance this could be for the tax that replaced the "intrastate" sticker? I can't remember what it was called, but I remember we had to pay a seperate tax/fee for a sticker that allowed us to pick up and deliver within Michigan.

I remember reading that the policy changed to something else now. Can someone clarify for me??

Thanks,


Dreamer
Forums Administrator


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"The present is what slips by us while we're pondering the past and worrying about the future."

- Ziggy

 

[grog111]

M.P.S.C

 

[Dreamer]

Thanks grog


Dreamer
Forums Administrator


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"The present is what slips by us while we're pondering the past and worrying about the future."

- Ziggy

 

[greg334]

Not really, Dreamer.

The replacement of the MPSC sticker was to be the multi-state registration and that has been delayed or supposed to be delayed.

The tax that I think that Michigan has gone back to the earlier strategy of trying to capture money that does not belong to them. They have done this a lot in the past with mail order purchases and this led to a court case on the federal level a while ago.

 

[jlb825]

Yes we are in expediting and live in Ohio. Because we had drivers who lived in Michigan the IRS provided Michigan the 1099 information. I have to respond to them by August 24.

 

[Dreamer]

Thanks Greg!

jlb,
Are they after you for employment tax, saying your drivers were employees not independant contractors?



Dreamer
Forums Administrator


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"The present is what slips by us while we're pondering the past and worrying about the future."

- Ziggy

 

[jlb825]

No, they want to know how much business drivers did in Michigan and want us to pay taxes on it. I quote: "The nature of 1099 payments may make your company liable for Michigan taxes,if the payess were conducting activities (soliciting sales or performing services) in Michigan on behalf of the company.

I don't have a clue what they did in Michigan since the company we expedite for does not provide that information on the settlement sheets. Like I said before there was no reason to keep track of that anyway. I think they should go after the bigger fish.

 

[greg334]

A dumb question, did you contact the company about this?

 

[grog111]

Governor Jennifer M. Granholm signed into law Public Act 33 of 2007. Public Act 33 amends the Michigan Motor Carrier Act (Public Act 254 of 1933). Public Act 33 will result in some significant changes in how household goods movers will operate in Michigan.

The major changes that will result from Public Act 33 include:

All motor carriers conducting intrastate household goods movement must obtain household goods operating authority from the Michigan Public Service Commission.

A new category of “local moves" is defined as “a household goods shipment of 40 miles or less, from point of origin to point of destination, as determined by actual miles traveled by the motor carrier and verifiable by odometer reading or mileage in general public use." These “local moves" will not be subject to the rate and tariff requirements of Article II of Act 254.

There are other changes that will be of interest to Michigan household goods movers. Public Act 33 (Enrolled Senate BIll No. 266) can be reviewed at the following website:
http://www.legislature.mi.gov

For additional information, please contact the Michigan Public Service Commission Motor Carrier, Energy Grants and Information Division at (517) 241-6030.

 

[jlb825]

We initially did contact the company we expedite for about this and they didn't know what we were talking about.

 

[Turtle]

"The nature of 1099 payments may make your company liable for Michigan taxes,if the payess were conducting activities (soliciting sales or performing services) in Michigan on behalf of the company."

"No, they want to know how much business drivers did in Michigan and want us to pay taxes on it."

That's an easy one. Tell 'em none. They want you to come up with a number, then pay the taxes on it. Simply tell them that the drivers didn't do any business in Michigan on behalf of the company, that the drivers only reside there, and that they are conducting interstate business, not business within Michigan. If the State feels that some additional taxes are due on something other than the income taxes due on the 1099's, you'll be happy to take a look at whatever figures they have come up with.

Slow and steady, even in expediting, wins the race - Aesop

 

[davekc]

That would be my take. The burden of proof is on the state to produce an amount, and what they did to arrive at that amount.
Sending a generic letter means nothing.










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