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2013 House Bill 4288: Restrict use of “indirect” tax audits

Public Act 108 of 2014

  1. Introduced by Rep. Frank Foster (R) on February 20, 2013, to prohibit the Department of Treasury from levying a delinquent sales tax assessment on a person or business based on an “indirect audit,” if a taxpayer has filed all the required returns and has maintained and preserved adequate records as required. The bill also establishes minimum standards for such “indirect audits”.
    • Referred to the House Tax Policy Committee on February 20, 2013.
      • Reported in the House on December 11, 2013, with the recommendation that the substitute (H-4) be adopted and that the bill then pass.
    • Substitute offered in the House on January 14, 2014. The substitute passed by voice vote in the House on January 14, 2014.
  2. Passed 107 to 0 in the House on January 15, 2014.
    Who Voted "Yes" and Who Voted "No"

  3. Received in the Senate on January 16, 2014.
    • Referred to the Senate Finance Committee on January 16, 2014.
      • Reported in the Senate on February 18, 2014, with the recommendation that the bill pass.
  4. Passed 37 to 0 in the Senate on March 26, 2014, to prohibit the Department of Treasury from levying a delinquent sales tax assessment on a person or business based on an “indirect audit,” if a taxpayer has filed all the required returns and has maintained and preserved adequate records as required. The bill also establishes minimum standards for such “indirect audits”.
    Who Voted "Yes" and Who Voted "No"

  5. Signed by Gov. Rick Snyder on April 7, 2014.

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