MI HB4292

Requires persons selling tangible personal property to maintain accurate inventory, purchase records, daily sales records, receipts, invoices, and bills of lading in paper, electronic, or digital format for 4 years after the applicable tax is due.

Establishes that the department may conduct indirect audits to assess tax liability based on available information if a taxpayer fails to file returns or maintain sufficient records, with the assessment considered prima facie correct and burden of proof on the taxpayer.

Prohibits the department from basing a tax deficiency determination on indirect audit procedures if the taxpayer has filed all required returns and maintained sufficient records, unless the department has documented reason to believe records or returns are inaccurate or incomplete.

Specifies that indirect audits must comply with 1941 PA 122 standards and include review of books and records, evaluation of evidence credibility and reasonableness, reconstruction of income using reasonable methods, and investigation of taxpayer-presented evidence.

Defines blanket exemption certificates as covering all exempt transfers between taxpayer and buyer for up to 4 years as agreed upon by both parties.