Industry News
Michigan recoups $2.4 million from tax avoidance scheme
May 2, 2005
In its first announced major State Unemployment Tax Act (SUTA) dumping case, the State of Michigan has recovered $2.4 million in unpaid unemployment insurance taxes. The case involved eight separate businesses that transferred all of their employees to a single organization without transferring assets between the companies. This corporate reorganization is a type of SUTA dumping, a tax evasion plan used by employers in order to receive a lower unemployment insurance tax rate. Detection of SUTA dumping was named one of Michigan's top legislative priorities for 2005 by Governor Jennifer Granholm.
Read the related article, "Michigan recoups $2.4 million from tax avoidance scheme."