MI SB1329

Establishes a 4-year statute of limitations for assessing tax deficiencies, interest, and penalties, running from the later of the return filing date or when the return was actually filed.

Requires purchasers of businesses to escrow funds to cover unpaid taxes, interest, and penalties until the former owner provides proof of payment or a certificate showing no taxes are due; purchasers who fail to comply become personally liable up to the fair market value of the business.

Holds officers, members, managers, and partners of businesses personally liable for collected taxes not remitted to the state, with assessments limited to 4 years after the assessment date to the business; establishes procedures for apportioning liability among multiple responsible persons.

Limits refund claims based on federal or state constitutional tax law validity to 90 days after the return filing date; provides exceptions for retirement and pension income refunds with a phased payment schedule from 1990-1993.

Clarifies that disregarded entities under federal tax law may be included on Michigan tax returns without requiring separate filings or additional assessments, and excludes certain investment income from business taxation for individuals and family investment entities.