MI SB1035

Amends Michigan's Income Tax Act to require reporting of final federal adjustments arising from partnership level audits or administrative adjustment requests under new Chapter 18.

Partnerships must file a federal adjustments report within 90 days of the final determination date and report each direct partner's distributive share of adjustments; direct partners have 180 days to file their own reports if tax increase is $25 or more.

Provides audited partnerships with an election to pay tax on behalf of all partners at blended corporate and individual tax rates rather than having individual partners file separately, with the partnership's payment considered paid in lieu of partner taxes.

Designates the federal partnership representative as the state partnership representative with sole authority to act on behalf of the partnership in all related proceedings unless the partnership designates another qualified person.

Establishes a 6-year assessment period for the department to assess additional tax, interest, and penalties if a taxpayer fails to timely file required federal adjustments reports; applies to all tax years beginning January 1, 2018 or later.