The bill amends the 1941 PA 122, which outlines the revenue collection duties of the Department of Treasury in Michigan. Key changes include the requirement for the Department to provide taxpayers with a complete copy of audit work papers and reports upon request, and the stipulation that audits must adhere to established auditing standards. The bill also introduces a more structured process for taxpayers to contest tax assessments, including the requirement for the Department to send a courteous letter of inquiry before assessing taxes, and the establishment of an informal conference process for dispute resolution.

Additionally, the bill specifies that if a taxpayer's protest is deemed frivolous, a penalty will be imposed. It mandates that the Department complete audits and issue final assessments within specified timeframes, and it requires the Department to publish semiannual reports on settlement activities. The settlement process outlined in the bill applies only to taxes administered under this act and excludes certain tax matters. The bill will take effect 90 days after being enacted, contingent upon the passage of related legislation.

Statutes affected:
House Introduced Bill: 205.21
As Passed by the House: 205.21