MI HB5514

Allows the Department of Treasury and Attorney General to compromise civil or criminal cases under the Income Tax Act of 1967 for delinquent taxes, interest, and penalties through an offer-in-compromise program.

For cases with $50,000 or less in delinquent amounts, requires the taxpayer to have an offer with the IRS and limits Michigan's compromise to the same percentage reduction as the federal offer.

For cases exceeding $50,000, permits compromise amounts determined by the department or attorney general based on the taxpayer's specific circumstances, provided the compromise is in the state's best interest.

Prohibits levy on a taxpayer's property during the period an offer-in-compromise is pending under the Income Tax Act of 1967.

Requires the department to adopt guidelines and establish an independent administrative review process for rejections of proposed offers-in-compromise before notifying the taxpayer.