FILE - In a Dec. 12, 2008 file photo, a pedestrian walks by graffiti in downtown Detroit. On Thursday, July 18, 2013 Detroit became the largest city in U.S. history to file for bankruptcy when State-appointed emergency manager Kevyn Orr asked a federal judge for municipal bankruptcy protection. (AP Photo/Carlos Osorio, FILE)
© 2024 Blaze Media LLC. All rights reserved.
Detroit turns resident's $500 income tax refund into a $5,300 bill
September 03, 2013
The mystery of how Detroit went bankrupt continues to puzzle me...
Ella Joshua-Dixon was born and raised on Detroit’s west side, and it’s a city she still loves. So, when she decided to let the city’s tax department keep her $500 2011 refund, she thought she was being generous, helping her cash-strapped hometown in her own small way.That backfired.
The city’s income tax division then sent her a letter, saying she owed back taxes, interest and penalties of $5,296 from years as far back as 1999.
By the end of the back-and-forth, the 47-year-old Auburn Hills accountant discovered that the city owed her more than that initial $500.
She was due another $416 — and fought back with copies of her W-2s and other documents, some wielded in person when she took time off her job to head downtown.
“What I would consider as doing a favor made out to be an invitation for harassment,” Joshua-Dixon said.
As Detroit grapples with bankruptcy, residents and the suburbanites who commute to jobs in the city are questioning the state of city income tax returns, especially those due a refund, and whether there’s a greater risk of being audited by a city looking in every corner for cash.
Want to leave a tip?
We answer to you. Help keep our content free of advertisers and big tech censorship by leaving a tip today.
Want to join the conversation?
Already a subscriber?
more stories
Sign up for the Blaze newsletter
By signing up, you agree to our Privacy Policy and Terms of Use, and agree to receive content that may sometimes include advertisements. You may opt out at any time.
© 2024 Blaze Media LLC. All rights reserved.
Get the stories that matter most delivered directly to your inbox.
By signing up, you agree to our Privacy Policy and Terms of Use, and agree to receive content that may sometimes include advertisements. You may opt out at any time.