CPA Advocate, Winter 2014

by MICPA | Nov 25, 2014   ()

Election Recap

For the next four years, residents of Michigan will have the country’s only CPA Governor. Governor Rick Snyder has been very inclusive of CPAs throughout his first four years in office, tapping them to serve on committees and boards all over the state. The MICPA expects to continue and even increase its partnership with the State of Michigan over the coming years. The MICPA has been active in many of the Governor’s key turnaround programs. Look for updates in future editions and in Advocacy Alerts to learn about future efforts to improve this great state.  

Four CPA legislators were victorious on November 4, continuing the level of representation in the last legislative session. They are:

MBT Reaches resolution

On September 16, Governor Snyder signed Senate Bill 156 into law, effectively becoming Public Act 282 of 2014. This bill, addressing COD Income, ITC Recapture and Renaissance Zone Credit, is likely to be the final in a long list of successful legislation supported by the MICPA. After years of considerable effort by the MICPA and its members, the Michigan Business Tax has likely reached a point where additional revisions are unlikely. While this issue has been resolved, the legislature has responded to the MICPA’s input on many other issues of taxation,and we look to continue that success with a new group of freshmen legislators.

Tax Appeals Process Reform: Senate Bills 1038, 1039 and 1040

A portion of the Legislature’s current efforts to reform Michigan’s tax appeals process is related to the structure and function of the Michigan Tax Tribunal. Currently, one member of the Tax Tribunal is legally required to be a CPA. The MICPA is a strong proponent of maintaining this statutorily required CPA position. Certainly the technical nature of many cases brought to the Tribunal is best addressed with a trained and knowledgeable CPA as a participant. The future of this position, as well as the other non-attorney positions on the Tribunal, continues to be debated. The Michigan Senate has passed this reform legislation in a form that maintains the CPA position. However, hurdles remain in the House, and the legislation may not receive final passage before the end of the legislative session in 2014.

Offer in Compromise established in Michigan for 2015

In another major victory for CPAs and taxpayers in Michigan, Governor Snyder signed legislation creating an offer in compromise program in Michigan for any tax administered under the Revenue Act. This big step makes Michigan and its tax collection agency more business friendly. The power for the Department of Treasury to compromise a tax will begin January 1, 2015. The change authorizes the State Treasurer to compromise the payment of a tax if a federal compromise exists, doubt existed as to liability or collectability, or if there were a substantial probability that a compromise would further the fair and efficient administration of the tax. For more detailed information, visit the State of Michigan’s website and view the bill in its entirety.

MICPA providing input to Treasury rule making process

The MICPA and members of the MICPA State and Local Tax Task Force continue to work with the Michigan Department of Treasury to update the administrative rules pertaining to audit standards. The rules are intended to provide public assurance that Treasury conducts tax audits using Generally Accepted Auditing Standards (GAAS) and other standards of professional conduct. As this is an issue that could potentially affect a number of members, the MICPA worked hard to earn CPAs seats at the table during the rule drafting process. This continues the trend of Treasury becoming more “customer-centric.” Earlier this year three laws, Public Acts 35, 108 and 109 of 2014, were signed by Governor Snyder to prohibit the use of indirect audit procedures and require the Treasury Department to provide all audit work papers to the taxpayer upon request.

Sales Use and Withholdings Filing Information

MICPA worked with the Michigan Department of Treasury to provide clarity of filing changes for Sales Use and Withholdings (SUW). For more information click here.

Source: MICPA
Source: MICPA

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