The good news is that you have options available. You may even be eligible to get a “fresh start” through a relatively recent IRS initiative. At Resnick Law, P.C., we are here to help and make sure that you have the information, tools, and resources you need to protect your rights and interests. 

What is the IRS Fresh Start Program?

In 2011, the IRS created the “Fresh Start” Program to help individuals and small businesses struggling with tax debt. The primary purpose of the program is to give the agency additional flexibility when dealing with struggling taxpayers, and to help them get back into good standing with the federal government. The program provides the IRS with significantly more authority to settle outstanding tax debt for less than the remaining balance. 

A Taxpayer May Qualify for an Offer in Compromise (OIC)

Most notably, the Fresh Start program grants the IRS greater authority to enter into an Offer in Compromise (OIC) with a taxpayer. Simply put, an OIC is an agreement between the IRS and an individual taxpayer or small business that settles tax debt for less (often, this can be much less). 

The IRS has the ability to narrowly tailor a tax debt settlement agreement to meet an individual or company’s unique circumstances and ability to pay.  Oftentimes, this allows a federal tax debt to be settled for pennies on the dollar. 

Key Factor: Reasonable Collection Potential 

While the IRS Fresh Start program certainly makes it easier for people and small businesses to resolve tax debt, the IRS can still be challenging to deal with (as you probably already know). The IRS is not in the business of simply writing off tax obligations without good cause. So, in part of reaching an Offer in Compromise (or settlement agreement) with the taxpayer, the IRS will look at and determine an applicant’s “reasonable collection potential.” 

Put another way, the IRS tries to calculate how much a taxpayer can pay without putting a serious financial burden on themselves or their family. If you are seeking an OIC through the Fresh Start program, it is crucial that you submit a strong, well-documented case. An experienced Michigan tax relief lawyer can help you get a favorable settlement with the IRS. 

Call Our Detroit, MI Tax Debt Relief Lawyers Today 

At Resnick Law, P.C., our Michigan debt relief attorneys have the skills and experience to help clients resolve and deal with tax debt issues. If you have any questions about the IRS Fresh Start program, we are here to help you find the best solution and provide the best resources. Contact our firm today for a free, fully confidential consultation. With a main office in Bloomfield Hills, we represent clients throughout the region, including in Oakland County, Wayne County, Macomb County, Livingston County, and Washtenaw County. 

One of the most common myths about bankruptcy is that you are required to give away all of your belongings. In reality, there are certain exemptions and items that you are allowed to keep during bankruptcy. For example, Michigan has a distinct group of items that a person is allowed to keep while navigating the bankruptcy process. To determine what items you are allowed to keep when filing for bankruptcy as well as answer the many questions that arise about the bankruptcy process, many people find it helpful to obtain the assistance of a seasoned bankruptcy lawyer. It is also helpful to understand some of the basics about Michigan’s homestead exemption.

The Amount Allowed Under Michigan’s Homestead Exemption

In accordance with the Michigan exemption law, homeowners as well as dependents are allowed to exempt up to $38,225 of interest in property. In cases in which the homeowner is 65 years of age or older (or the homeowner is disabled), the amount is increased to $57,350. While some states recognize that couples who file for bankruptcy and own property together are able to use the full exemption amount, married couples in Michigan who own property together are unable to double the homestead exemption. Despite these limitations, since 2005, the Michigan Department of Treasury has adjusted the exemption amount every few years. Currently, these amounts are scheduled to be adjusted against in 2020. This homestead exemption will apply to various types of real property that you might own in Michigan including houses, condominiums, co-op units, mobile homes, water vehicles, or any other type of home you own and use as your principal residence. If the property has associated land, the homestead exemptions also includes 40 acres. If the property is located in a city, the exemption includes one lot.

The Option of Federal Bankruptcy Exemptions

In the state of Michigan, when you declare bankruptcy, you have the option to select either state or federal bankruptcy exemptions. Currently, the federal bankruptcy exemption is $23,750.  Much like Michigan’s bankruptcy exemption, this federal exemption can be used for houses, condominiums, co-op units, mobile homes, water vehicles, or any other type of home. Unlike Michigan’s exemption, under the federal exemption, married couples are able to double this exemption. Much like Michigan’s exemption numbers, though, these numbers change frequently, which is why it is often important to contact a knowledgeable bankruptcy attorney before proceeding through the bankruptcy process.

Contact an Experienced Bankruptcy Attorney

The bankruptcy process is particularly complex and if you are not familiar with bankruptcy laws in Michigan, it is often in your best interest to obtain the assistance of a skilled bankruptcy attorney. At Resnick Law, we have years of experience in helping individuals navigate the bankruptcy process. Contact our law office today to schedule an initial free consultation.

(image courtesy of Joss Woodhead)

With hundreds of thousands of school children on the roads, it’s important to remind ourselves of the rules and regulations that govern our driving with regards to school buses

In 2012, Governor Rick Snyder signed a bill that changed the law about how motorists are supposed to react when they encounter a school bus stopping in front of them.  The previous law allowed motorists to come to a complete stop at an intersection where traffic was being regulated by a police officer, then proceed past the bus “with due caution for the safety of passengers being received or discharged from the school bus.”

Senate bill 1030 amended the Michigan Vehicle Code to eliminate this provision, stating instead that “a vehicle operator who fails to stop for a school bus as required or passes a school bus in violation of the Code is responsible for a civil infraction.”

The law now requires that drivers stop completely at least 20 feet from a school bus whenever the school bus is stopped and its two red flashing signals are employed.  The driver is allowed to proceed once the bus resumes motion or the visual signals are no longer actuated.

The fine for this type of violation would be not less than $100 and not more than $500.  Additionally, the violator may be ordered to perform up to 100 hours of community service at a school.

Drivers are sometimes confused by what is considered to be a “divided roadway,” and what their obligations are to stop when a school bus is stopped in this type of situation.  According to the law,

“The operator of a vehicle upon a highway that has been divided into 2 roadways by leaving an intervening space, or by a physical barrier, or clearly indicated dividing sections so constructed as to impede vehicular traffic, is not required to stop upon meeting a school bus that has stopped across the dividing space, barrier, or section.”

According to Sgt. Mark Thompson of the Michigan State Police, “it is not necessary to stop for a school bus stopped on the other side of a divided highway where the road is separated by a barrier, such as a concrete or grass median, island, or other structures that separate the flow of traffic. On five lane roads where there is just a left turn lane, vehicles are required to stop on both sides of the road.”

It is also interesting to note that the lights on a school bus which are used to notify other traffic of an upcoming stop must, by law, be activated 200 feet from the stop.

Another way in which we might encounter school children during our travels this fall will be when they are crossing the road near their school on foot, often under the watchful eye of a school crossing guard.  The law has strict regulations regarding obeying a crossing guard:

“A driver of a motor vehicle who fails to stop when a school crossing guard is in a school crossing and is holding a stop sign in an upright position visible to approaching vehicular traffic is guilty of a misdemeanor.”

Let’s all work together in order to obey the law, and, most importantly, to keep our children safe.