HB 5519 Summary

• Authorizes the state treasurer to compromise tax liabilities, unpaid accounts, or amounts due the state when doubt exists about liability or collectibility, or when compromise would further fair tax administration.

• Requires written reports filed in the state treasurer's office for compromises over $25,000, including the original amount owed, penalties and interest imposed, and amount actually paid.

• Directs the state treasurer to establish within 90 days: guidelines modeled on federal offer-in-compromise standards, administrative decision procedures, independent review process for rejections, taxpayer appeal procedures, and application fees with payment plan options.

• Provides that a taxpayer receiving a federal tax compromise is presumptively entitled to a proportional compromise on similar Michigan tax liability for the same tax year.

• Allows compromise revocation if induced by fraud or perjury, or if taxpayer fails to comply with payment agreement within 5 years; permits public inspection of accepted offer-in-compromise agreements.