Detroit Tax problems any Advice

Hi all wanted to know if anyone has been down this road or had a similar situation.

SO Detroit tax Division is saying I owe them back taxes for the year 2011 when I lived in Virginia for 8 Months and West Bloomfield for 2 and didn't work int he City the whole year. My wife Did live in Detroit for the end of 2011 [[the eayr in Question) and paid payroll income tax.

The city is multiplying 2.5% against my entire Gross income, not taking into account, 1 that 80% of that income was from a different state and 15% was from A different City and I didn't live in Detroit I lived in Oakland county. the other 5% was from my wife's income, which she did pay taxes on [[actually the city gave her a refund which she rolled into the next year).


Any one know where I should start to fight this? And other than W2's and tax returns what I need to show for it?

Thanks

Did you live in Detroit at all during 2011? If so, when? Where did you work during that time?

Were you and your wife married for all of 2011? Did you file jointly?

Frankly, it sounds like you may need to talk to an expert about this.

I agree that a professional tax preparer is a good step.

Then document everything in a log. If you are doing this yourself, call them. Write down 4/1/2015, called tax department at 313.222.1234. No answer. Or write down who you talked to. If you don't get any answers, write letters. Make them clear and simple. Ask for a reply. Keep a lot of everything.

I haven't worked with CofD Finance on taxes, but have dealt with many city departments. When they start putting on penalties you want to have documentation that you were on top of the situation and that they were the slowpokes/non-responders. Don't let their lack of professional handling become your problem. Complain and lot. Document a lot.

I think you need a professional, too. Your case is I think complicated by the fact that your wife remained, especially if you filed any taxes jointly. Also, I hope you didn't vote in Detroit that year, buy a car registered in the city, etc. Doing anything besides taxes that suggests residency bolsters their case. Get a pro, and as Wes suggests, document anything you can.

EasrsideAl brought up the salient point. Did you file jointly? The city used to require that you had to file the sane way as you file federally.

If so, you might consider filing an amended return showing your total income and then reducing it commensurate for the amount of time it was earned in the city [[supported by your records). When I was headquartered in the city, I traveled about 25-30% of the time, I kept track of all those days and then reflected the adjusted amount on my tax return [[I also always under withheld, so I would owe at year end and not be sent to that mystical world of expecting a refund).

Had an odd ball problem similar to yours that goes back many years. Bought a house in December 1979. Our taxes filed in 1980 reflected a Detroit address. got an insane bill. Called and got an amazing bozo. Went in person, took a number, talked to a finance person, had my documents, got resolved. Not all city workers are assholes.

I do understand your frustration though. We had to fight our assessment in 2010, on a home we inherited. It was a bit of a merry-go-round, we won that battle.

We ended up with an over payment that we never got back. We did get a letter saying we were creditors in the bankruptcy suit, I guess I'll kiss that money away

I have never been caught in a city income tax thing, but for a number of years filed taxes in two states [[paid one state on partial income, claimed a credit against taxes in the second state). Every year it seemed that some clown in a tax office would compare my federal income against my state reporting and would decide I should pay everything to his/her state and I would have to go through several levels of the bureaucracy to straighten it out. I became an expert on citing the court decision which required this.

Quote:

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Originally Posted by jaytheory

SO Detroit tax Division is saying I owe them back taxes for the year 2011 when I lived in Virginia for 8 Months and West Bloomfield for 2 and didn't work int he City the whole year.

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When you lived In VA, did you rent\lease? How did you pay? These days it should be fairly easy to obtain cashed checks copies or automatic payment withdrawal records from your financial institution online. Did you use a CC while you were living in VA? Purchase anything? Again, it should be fairly easy to pull up your CC records for that year. Corporate CC, maybe? If you can show you actually were living in VA, it seems like a no-brainer to me. That being said, I've always maintained you should seek professional help.....

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Originally Posted by jolla

Did you live in Detroit at all during 2011? If so, when? Where did you work during that time?

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No My Wife Did, but I didnt, I lived in Oakland County and Worked in A2

She was in VA with me as well. when we moved back she Moved to Detroit, got a JOB a WSU and paid payroll income tax. we actually both lived in VA for 2 years prior to 2011.

Appreciate the help all.


It is really annoying that they are doing this. At most they can clim 3 Months of my wifes income as what we owe taxes on.


The worst part is if they would just use there heads and look at the tax return for that year, I filed in Both States! my income in Michigan was less than 16K [[which we paid taxes on) and my wife the only Detroit payer was like 6k for that portion of the year

And they are trying to tax me on income of of many times that

Its sad because they are grasping at traws and if they just fixed the system, this wouldn't happen.

Quote:

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Originally Posted by jaytheory

Appreciate the help all.


It is really annoying that they are doing this. At most they can clim 3 Months of my wifes income as what we owe taxes on.


The worst part is if they would just use there heads and look at the tax return for that year, I filed in Both States! my income in Michigan was less than 16K [[which we paid taxes on) and my wife the only Detroit payer was like 6k for that portion of the year

And they are trying to tax me on income of of many times that

Its sad because they are grasping at traws and if they just fixed the system, this wouldn't happen.

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Jay, they get a printout by SSAN from the feds showing gross and taxable income. They then go after you without doing anymore research.

Been there, done that! Start with an appointment with the city finance dept. If they can't or won't resolve your problems get a professional on it.

I received a similar letter from the city earlier this year. For 3 straight years I forgot to attach W2s when I filed my city taxes. I resovled the issue by presenting the W2s to the finance department. The W2s proved that local taxes had been withheld.
If you have the proper documents you shouldn't have a problem. It is important, however, that you address this before the date stated in the letter. Good luck.

It will cost you one way or another. Tough luck.