MI HB4288

Requires taxpayers to maintain accurate inventory, purchase, sales, and receipt records in paper, electronic, or digital format for 4 years after the applicable tax is due.

Prohibits the Michigan Department of Treasury from using indirect audit procedures to assess additional taxes unless the department has documented reason to believe records or returns are inaccurate or incomplete.

Establishes requirements for indirect audits when permitted, including review of books and records, evaluation of evidence credibility, and investigation of taxpayer evidence refuting the computation.

Allows blanket exemption claims between licensed wholesalers and the Michigan liquor control commission to cover all exempt transfers for up to 4 years without requiring renewal if a recurring business relationship exists.

Defines "indirect audit procedure" as an audit method determining tax liabilities through analysis of business activities using information sources beyond the taxpayer's books and records.