Back taxes for state - don't live there any more...?

Question

We received a tax bill for 2005 from Michigan in the amout of $6,000. While I'm not even sure whether or not that money is actually owed to begin with, the main concern I have is this:

The letter advised that they could garnish wages, put a tax lein on any property we owned, or seize money from bank accounts if we don't pay it immediately.

Unfortunately, my husband and I are both unemployed right now (both laid off earlier this summer). So, there are no wages to garnish. And, after a few months of unemployment, savings account has dwindled - there isn't really anything left there for them to take. What little we have left is what we need to feed our family until at least one of us lands another full time job. (The job market in our area is horrendous)

We do have considerable equity in our home - I suppose a lein would be the state's best option to secure the amount they say is owed

Since we don't live in/own real estate in MI, will they be able to put a lein on our Ohio home?

We lived in Michigan for the first 4 months of 2005. Haven't lived there since.

(I still wonder how we could owe $6K in taxes for 4 months of living in Michigan - we had very modest incomes at the time! Unless they have tacked on lots of fees, penalties, interest, etc.)

If the money is truly owed, I'd be happy to pay it off...of course, we have to land jobs soon in order to do that! (Keeping fingers crossed - lots of interviews lately.)

I'm just concerned that they'll try to take what's in our bank accounts (which after a few months of unemployment isn't enough to cover the bill anyhow)...that money is all we have to feed our kids right now until paychecks start coming in. I could live with them putting a tax lein on our property (if the money is actually owed)...not the ideal situation as it hits the credit report, but better than not having access to what little cash we have to feed our kids!

Answer 1

Yes, they can put a lien on any property anywhere.

Answer 2

Did you sell a house in MI when you moved, and have a large profit? Other than that, $6000 doesn't make much sense. The letter should have said something about WHY they are saying you owe that much.

Be sure to respond to the letter in the time given - otherwise you could give up rights to appeal.

Yes, they could and probably would put a lein on your home in Ohio.

Answer 3

Actually Michigan's power stops at the border. They would have get a court judgment then a sister state judgment to file against you in Ohio..Question is why do you owe in Michigan? You seem perplexed. If you lived there part of the year you should file a part year income tax return. If you didn't they may have done it for you under their procedures for non-filers. You can fix it by filing a correct return which will show what you owe. Or don't.