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Contact Information:
Edward S. Kisscorni, CPA
290 Suncrest Court, SW
Grandville, MI 49418

Office: 616/233-0667
Cell: 616/443-6730
Fax: 616/233-0667

Blog: www.EdKisscorni.com/Blog1
Email: Ed@EdKisscorni.com
 



 



 

 Blog 
Wednesday, December 19 2012

Power of Attorney and the Right of a Taxpayer to be Represented by a Representative Authorized to Receive Correspondence including Assessments

SMK, LLC v Michigan Department of Treasury

 

SMK, LLC (SMK) operated a convenience store located in Midland, Michigan across the street from the Dow Chemical world headquarters.  The Department of Treasury (Treasury) audited SMK for sales tax.  SMK executed a Power of Attorney form directing the Department of Treasury to send all correspondence and bills to their CPA.   The CPA represented SMK during a sales tax audit.  SMK wanted to appeal the sales tax audit determination.   The Department of Treasury failed to send a copy of the Bill for taxes Due (Final Assessment) to the CPA.  Consequently, the Tax Tribunal Petition was filed late.

 

The Department of Treasury prepared a Bill for Tax Due (Final Assessment) sending it out blind to the taxpayer, but did not send it to the CPA.   The Tax Tribunal Petition was filed after 35 days from the date on the  Bill for Tax Due (Final Assessment).  The Tax Tribunal accepted the Petition.  

 

The Tax Tribunal appeal was successful with the Tax Tribunal ordering the Bill for Tax Due (Final Assessment) be cancelled.  

 

The Department of Treasury appealed to the Court of Appeals, not on the sales tax issues, but on the issue of Subject Matter Jurisdiction because the Petition was filed after 35 days from the date of the Bill for Tax Due (Final Assessment).

 

The Court of Appeals ruled in a Published decision that the 35-day appeal period does not start until both the taxpayer and the taxpayer's representative have received the Bill for Tax Due (Final Assessment).  The Department of Treasury filed a Motion for Reconsideration which was rejected by the Court of Appeals.  Last week Treasury filed an Application for Leave to Appeal to the Michigan Supreme Court.  The Supreme Court will be asked to opine on the right of a taxpayer to be represented by professional counsel and the right of a CPA or other professional to represent a taxpayer.

 

Fradco, Inc. v  Michigan Department of Treasury

 

Fradco, Inc. (Fradco) operated a convenience store located near Grand Rapids across the street from the Amway world headquarters.  Fradco was audited for sales tax for the third time by the Department of Treasury.  Fradco was represented by a CPA.  Fradco executed a Power of Attorney form directing the Department of Treasury to send all correspondence and bills to the CPA.   The CPA had represented Fradco during several sales tax audits including the last one and also represented Fradco at an informal conference.  

 

At the completion of the Informal Conference, the Department of Treasury prepared a Bill for Tax Due (Final Assessment) sending it out blind to the taxpayer, but did not send it to the CPA.  

 

Fradco filed a Tax Tribunal Petition so as to appeal the Sales Tax Assessment.  The Tax Tribunal Petition was filed after 35 days from the date on the  Bill for Tax Due (Final Assessment.  The Tax Tribunal accepted the Petition.  

 

The Tax Tribunal appeal was successful with the Tax Tribunal ordering the Bill for Tax Due (Final Assessment be cancelled.  

 

The Department of Treasury appealed to the Court of Appeals, not on the sales tax issues, but on the issue of Subject Matter Jurisdiction because the Petition was filed after 35 days from the date of the Bill for Tax Due (Final Assessment.

 

The Court of Appeals ruled in a Published decision that the 35-day appeal period does not start until both the taxpayer and the taxpayer's representative have received the Bill for Tax Due (Final Assessment.  The Department of Treasury filed a Motion for Reconsideration which was rejected.  Last week the Department of Treasury filed an Application for Leave to Appeal to the Michigan Supreme Court.  The Supreme Court will be asked to opine on the right of a taxpayer to be represented by professional counsel and the right of a CPA or other professional to represent a taxpayer.

Posted by: Ed Kisscorni AT 01:00 pm   |  Permalink   |  Email

 

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