Fraser Trebilcock attorneys Paul McCord and Paul Mallon recently won a tax refund judgment against the Michigan Department of Treasury of over $235,000. The taxpayer, a successful small business, claimed the small business credit against its Michigan Business Tax for each of four years. The Department denied the credit claim and assessed the taxpayer over $200,000. After paying the assessment, the attorneys filed a tax refund suit in the Michigan Court of Claims.
Shortly after filing suit, the Department attempted to change its theory of liability from that contained in its assessment and filed a motion for summary disposition. Recognizing the bait and switch tactic and fully versed in the case law, McCord and Mallon successfully defeated the Department's motion and its attempt to raise a new theory.
After a one-day trial, the court concluded that Fraser Trebilcock’s tax client was properly entitled to the tax credit that it had claimed and returned a judgment of all amounts paid plus interest.