MI HB4976

Requires the Department of Treasury to promulgate audit standards within 1 year addressing confidentiality, technical training, independence, due professional care, planning, supervision, and other auditing elements.

Establishes a settlement process during tax disputes that allows taxpayers and the department to negotiate before or after an informal conference, with final settlements reviewed and approved by the State Treasurer or designee.

Prohibits settlement offers, counter-offers, settlement agreements, and related documents from being disclosed or used as evidence in proceedings before the Michigan Tax Tribunal, Court of Claims, or any court.

Requires the Department of Treasury to complete audit fieldwork and provide a written preliminary audit determination within 1 year of the applicable period, and issue a final assessment within 9 months of the preliminary determination unless the taxpayer requests reconsideration or an informal conference.

Mandates semiannual publication on the department's website of settlement data including aggregate original determinations, aggregate settled amounts, and the number of settlements entered during each reporting period.