2222 W. Grand River Avenue | Okemos, MI 48864
517-349-5584

Thomas A. Klug

Senior Partner

Licensed since: 1977

2222 W. Grand River Avenue
Okemos, MI 48864
517-349-5584 Tel
517-349-5588 Fax

Attorney at Law

Thomas A. Klug is the founder of Klug Law Firm.  He obtained his masters in taxation of law at the University of Miami, Florida in 1977.  His practice primarily focuses in the areas of taxation, banking, business, estate planning and nonprofit organizations.  He focuses his practice on the needs of the small to median size businesses and individuals in tax and estate planning and uses his expertise in taxation and estate planning to ensure that his clients are properly represented in every aspects of the law.    

For over 37 years, Mr. Klug has:

  • represented tax clients in the United States Court of Appeals, 6th Circuit, United States District Court for the Western and Eastern Districts of Michigan, United States Tax Court, United States Bankruptcy Courts for the Western and Eastern Districts of Michigan and Southern District of Florida, Michigan Tax Tribunal, and Michigan Court of Claim;        
  • represented tax clients in tax audits, collections, appeals, civil and criminal tax fraud cases before the Internal Revenue Service ("IRS") the State of Michigan Department of the Treasury and State of  Florida  Department of Revenue;
  • represented tax clients in Offer in Compromises of their tax liabilities before the IRS and as of January 1, 2015 before the State of Michigan Department of the Treasury;
  • obtained  501 (c)(3); (c) (4)  & (c)(5) tax exempt status  from the IRS for nonprofit organizations, including public safety organizations, support organizations for college and community athletic teams (football, basketball, hockey and wrestling) and conservation organizations;
  • represented individuals in the formation of businesses as corporations, chapter S corporations, limited liability companies, limited partnerships, partnerships and sole proprietorships;
  • lectured in estate planning and represented clients in business and estate planning, probate administration, conservatorship, guardianship, power of attorneys, Medicaid eligibility, application and planning and elder law throughout Michigan and Florida; 
  • prepared several different trusts to use to meet the specific needs of clients, including credit shelter trust, special needs trusts, and  Medicaid qualifying trusts;
  • represented clients in the buying, selling and leasing of residential and commercial real estate throughout Michigan and Florida; and
  • represented banks and financial institutions in regards to business, commercial, and personal loans. 

Mr. Klug is experienced in tax, business and corporate law, non profits, real estate, estate planning, elder law and probate matters.

CLIENT REPRESENTATION

  • Represented  clients (husband and wife) on an appeal of an assessment as a result of a federal tax audit on a tax return prepared by their CPA.  The CPA had prepared the clients tax returns for over 20 years.  The CPA died prior to the audit.  The husband had a heart attack and triple bypass surgery prior to the onset of the audit.  Without representation, the wife  appeared at the audit on her own.  The IRS agent's audit resulted in a determination of a tax deficiency of over $70,000.00.  The wife, did not want to inform her husband of the audit results for her fear that her husband might suffer another heart attack.  On appeal, the wife employed Mr. Klug to represent them.  Mr. Klug was not only able to prove that his clients did not owe over $70,000.00 as the IRS agent's audit revealed,  rather, his clients were entitled to and did receive a refund of over $15,000.00.
  • Represented  a client on obtaining a temporary restraining order  ("TRO") from the United States District Court for the Western District of Michigan against the IRS, restraining the IRS from filing a tax lien against the client's business until it complied with the appropriate Internal Revenue Code ("IRC").  Since the IRC has an "anti injunction section" , this TRO was very difficult to obtain and lasted for a short time.  The TRO, however, allowed the client to reorganized his business and he is still in business today.
  • Represented a client in an IRS six figure abusive tax shelter penalty in the amount of $120,000.00 assessment against the client in the United States District Court for the Western District of Michigan, and the United States Court of Appeals, 6th Circuit. The cases settled before going to the United States Supreme Court for less than $4,000.00.
  • Represented clients in claim for refund cases in the United States District Courts for the Western and Eastern Districts of Michigan.
  • Represented clients in IRS and Michigan Officer liability trust fund penalty cases. Mr. Klug has been successful in having the IRS  and State of Michigan Department of the Treasury Hearing Division determine the officers, including Presidents and Vice Presidents, are not liable as a responsible officer for the trust fund taxes, in particular payroll taxes, owed by their corporation or  limited liability company.
  • Represented a client appealing an assessment against him as a responsible officer for the Michigan Single Business Tax of a corporation.  The client was the Vice President of the company, and as a result of being an officer, the State of Michigan Department of Treasury assessed the company's single business tax against him.  The appeal hearing was held in front of the Michigan Tax Tribunal in the case entitled Hickey v State of Michigan, Department of the Treasury, MTT Docket #0320519.  The Michigan Tax Tribunal held that the client was not responsible for the Michigan Single Business Tax and set aside the assessment.
  • Represented clients before the IRS and in the United States Tax Court regarding foreign earned income exclusion (IRC §911).  One case involved a civilian U.S. citizen working for NATO in Afghanistan who was denied the foreign earned income exclusion.
  • Represented clients for over 37 years in Offer in Compromises of their federal tax, penalty and interest liabilities resulting in substantial compromises of their tax liabilities.  The following chart illustrates some of the compromises and tax savings Mr. Klug has negotiated with the IRS on behalf of his clients during the past couple of years:

Case Reference

Offer  Compromise Settlement Amount

Total Liability

Write Off

Percentage

DJD

 $ 9,160.04

 $ 159,926.02

 $ 150,765.98

94%

HRM

7,200.00

61,771.76

54,571.76

88%

KJ

1,000.00

37,589.95

36,589.95

97%

KS

1,000.00

19,044.28

18,044.28

95%

LP

15,000.00

112,971.25

97,971.25

87%

PPC

7,687.10

56,803.99

49,116.89

86%

SC

7,100.00

175,989.53

168,889.53

96%

SL

10,000.00

39,706.31

29,706.31

75%

TL

22,401.00

259,103.34    

236,702.34

91%

TEACHING AND LECTURING

  • Davenport College – former tax and accounting professor, Lansing, MI
  • Thomas M. Cooley Law School – former adjunct professor, estate and gift tax, Lansing, MI
  • Institute of Continuing Legal Education (ICLE) – Commentator:
    • Taxation of Decedents’ Estates – 12/4/1987;
    • Common Tax Problems and the Non-Tax Specialist – 12/11/1987;
    • Drafting Business and Corporate Document IV- 3/21/1995;
    • 15th Annual Drafting Estate Planning Documents Seminar – 2/24/2006;
    • Administration of Trusts – 9/26/2006;
    • Planning Techniques for the Taxable Estate – 1/23/2007;
    • Preparing Estate & Gift Tax Returns and Post-Death Tax Planning – 10/16/2007;
    • Planning Techniques for the Taxable Estate – 1/29/2008;
    • Administration of Trusts – 9/25/2008;
    • Preparing Estate & Gift Tax Returns and Post Death Tax Planning – 11/4/2009;
    • Administration of Trusts Under the Michigan Trust Code – 11/2/2010;
    • Estate Planning for Second Marriages & Non-Traditional Families – 1/13/2011;
    • Basics of Advising Elderly Clients & Those With Disabilities - 07/12/2011;
    • Post-Death Tax Planning & Preparing Fiduciary Estate & Gift Tax Returns - 10/18/2011;
    • 21st Annual Drafting Estate Planning Documents- 03/07/2012;
    • Estate & Financial Planning for Families Special Needs Children- 05/15/2012;
    • 22nd annual Drafting Estate Planning Documents, and
    • Fundamentals of Estate Administration- 3/12/2013.
Klug Law Firm
2222 W. Grand River Avenue
Okemos, MI, 48864 USA
517-349-5584