Bill Text: MI HB4555 | 2009-2010 | 95th Legislature | Introduced
Bill Title: Michigan business tax; other; offer-in-compromise program; provide for. Amends 1941 PA 122 (MCL 205.1 - 205.31) by adding sec. 23a.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2009-03-11 - Printed Bill Filed 03/11/2009 [HB4555 Detail]
Download: Michigan-2009-HB4555-Introduced.html
HOUSE BILL No. 4555
March 10, 2009, Introduced by Rep. Green and referred to the Committee on Tax Policy.
A bill to amend 1941 PA 122, entitled
"An act to establish the revenue collection duties of the
department of treasury; to prescribe its powers and duties as the
revenue collection agency of this state; to prescribe certain
powers and duties of the state treasurer; to establish the
collection duties of certain other state departments for money or
accounts owed to this state; to regulate the importation, stamping,
and disposition of certain tobacco products; to provide for the
transfer of powers and duties now vested in certain other state
boards, commissions, departments, and offices; to prescribe certain
duties of and require certain reports from the department of
treasury; to provide procedures for the payment, administration,
audit, assessment, levy of interests or penalties on, and appeals
of taxes and tax liability; to prescribe its powers and duties if
an agreement to act as agent for a city to administer, collect, and
enforce the city income tax act on behalf of a city is entered into
with any city; to provide an appropriation; to abolish the state
board of tax administration; to prescribe penalties and provide
remedies; and to declare the effect of this act,"
(MCL 205.1 to 205.31) by adding section 23a.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 23a. (1) The state treasurer, or an authorized
representative of the state treasurer, may compromise all or any
part of any payment of a tax, unpaid account, or amount due the
state or any of its departments, institutions, or agencies, subject
to administration under this act including any related penalties
and interest if 1 or more of the following grounds exist:
(a) A doubt exists as to liability.
(b) A doubt exists as to collectibility.
(c) A substantial probability exists that a compromise would
further the fair and efficient administration of the tax.
(2) Except as otherwise provided under subsection (3), if the
state treasurer, or an authorized representative of the state
treasurer, compromises all or any part of any payment of a tax,
unpaid account, or amount due the state or any of its departments,
institutions, or agencies as authorized under subsection (1), he or
she shall place on file in the office of the state treasurer a
written report outlining the basis for the compromise and, at a
minimum, a statement of each of the following:
(a) The amount of tax assessed or other amount due to this
state.
(b) The amount of interest, additional amount, addition to the
tax, or assessable penalty imposed by law on the person against
whom the tax is assessed.
(c) The amount actually paid in accordance with the terms of
the compromise.
(3) The state treasurer, or an authorized representative of
the state treasurer, is not required to file a report if the
compromise is related to a civil case that involves an unpaid
amount of tax assessed, an unpaid account, or other amount due
including any interest, additional amount, addition to the tax, or
other assessable penalty that is less than $25,000.00.
(4) A compromise under this section is subject to continuing
quality review by the state treasurer. The department may revoke
any compromise if the compromise was induced by fraud or perjury,
or if the taxpayer fails to comply with any tax payment agreement
within 5 years after the date the compromise is made.
(5) The fact that a taxpayer received a federal compromise of
tax in a tax year is prima facie evidence that the same taxpayer is
entitled to a compromise of any similar or comparable Michigan tax
liability that exists, at least in a proportional amount, for the
tax year in which the federal compromise was granted.
(6) Within 90 days after the effective date of the amendatory
act that added this section, the state treasurer shall do all of
the following:
(a) Establish guidelines for the offer-in-compromise program
authorized under this section. If appropriate, the guidelines shall
be modeled after those guidelines published by the internal revenue
service of the United States department of treasury in regards to
the federal offer-in-compromise program established under section
7122 of the internal revenue code.
(b) Establish administrative guidelines for officers and
employees within the department to use when making decisions on
whether an offer-in-compromise is appropriate.
(c) Establish procedures for an independent administrative
review of any rejection of a proposed offer-in-compromise made by a
taxpayer under this section before the rejection is communicated to
the taxpayer.
(d) Establish procedures for the appeal of any rejection of an
offer-in-compromise by the taxpayer.
(e) Establish appropriate application fees and procedures to
allow for payment plans to satisfy a compromised liability.
(7) The department shall disclose return information to
members of the general public to the extent necessary to permit
inspection of any accepted offer-in-compromise under this section
relating to the liability for a tax imposed by this state.
