SB-0337, As Passed House, January 15, 2014

HOUSE SUBSTITUTE FOR

SENATE BILL NO. 337

      A bill to amend 1941 PA 122, entitled

"An act to establish the revenue collection duties of the

department of treasury; to prescribe its powers and duties as the

revenue collection agency of this state; to prescribe certain

powers and duties of the state treasurer; to establish the

collection duties of certain other state departments for money or

accounts owed to this state; to regulate the importation,

stamping, and disposition of certain tobacco products; to provide

for the transfer of powers and duties now vested in certain other

state boards, commissions, departments, and offices; to prescribe

certain duties of and require certain reports from the department

of treasury; to provide procedures for the payment,

administration, audit, assessment, levy of interests or penalties

on, and appeals of taxes and tax liability; to prescribe its

powers and duties if an agreement to act as agent for a city to

administer, collect, and enforce the city income tax act on

behalf of a city is entered into with any city; to provide an

appropriation; to abolish the state board of tax administration;

to prescribe penalties and provide remedies; and to declare the

effect of this act,"

by amending sections 21, 27a, and 30 (MCL 205.21, 205.27a, and

205.30), section 21 as amended by 2006 PA 11, section 27a as

amended by 2012 PA 211, and section 30 as amended by 2013 PA 133.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1        Sec. 21. (1) If a taxpayer fails or refuses to make a return

 2  or payment as required, in whole or in part, or if the department

 3  has reason to believe that a return made or payment does not

 4  supply sufficient information for an accurate determination of

 5  the amount of tax due, the department may obtain information on

 6  which to base an assessment of the tax. By its duly authorized

 7  agents, the department may examine the books, records, and papers

 8  and audit the accounts of a person or any other records

 9  pertaining to the tax.

10        (2) In carrying out this section, the department and the

11  taxpayer shall comply with the following procedure:

12        (a) The department shall send to the taxpayer a letter of

13  inquiry stating, in a courteous and nonintimidating manner, the

14  department's opinion that the taxpayer needs to furnish further

15  information or owes taxes to the state, and the reason for that

16  opinion. A letter of inquiry shall also explain the procedure by

17  which the person may initiate communication with the department

18  to resolve any dispute. This subdivision does not apply in any of

19  the following circumstances:

20        (i) The taxpayer files a return showing a tax due and fails

21  to pay that tax.

22        (ii) The deficiency resulted from an audit of the taxpayer's

23  books and records by this state.

24        (iii) The taxpayer otherwise affirmatively admits that a tax

25  is due and owing.

26        (b) If the dispute is not resolved within 30 days after the

 1  department sends the taxpayer a letter of inquiry or if a letter

 2  of inquiry is not required pursuant to subdivision (a), the

 3  department, after determining the amount of tax due from a

 4  taxpayer, shall give notice to the taxpayer of its intent to

 5  assess the tax. The notice shall include the amount of the tax

 6  the department believes the taxpayer owes, the reason for that

 7  deficiency, and a statement advising the taxpayer of a right to

 8  an informal conference, the requirement of a written request by

 9  the taxpayer for the informal conference that includes the

10  taxpayer's statement of the contested amounts and an explanation

11  of the dispute, and the 60-day time limit for that request.

12        (c) If the taxpayer serves written notice upon the

13  department within 60 days after the taxpayer receives a notice of

14  intent to assess, remits the uncontested portion of the

15  liability, and provides a statement of the contested amounts and

16  an explanation of the dispute, the taxpayer is entitled to an

17  informal conference on the question of liability for the

18  assessment.

19        (d) Upon receipt of a taxpayer's written notice, the

20  department shall set a mutually agreed upon or reasonable time

21  and place for the informal conference and shall give the taxpayer

22  reasonable written notice not less than 20 days before the

23  informal conference. The notice shall specify the intent to

24  assess, type of tax, and tax year that is the subject of the

25  informal conference. The informal conference provided for by this

26  subdivision is not subject to the administrative procedures act

27  of 1969, 1969 PA 306, MCL 24.201 to 24.328, but is subject to the

 1  rules governing informal conferences as promulgated by the

 2  department in accordance with the administrative procedures act

 3  of 1969, 1969 PA 306, MCL 24.201 to 24.328. The taxpayer may

 4  appear or be represented by any person before the department at

 5  an informal conference, and may present testimony and argument.

 6  At the party's own expense and with advance notice to the other

 7  party, a taxpayer or the department, or both, may make an audio

 8  recording of an informal conference. A taxpayer who has made a

 9  timely request for an informal conference may at any time

10  withdraw that request by filing written notice with the

11  department. Upon receipt of the request for withdrawal from the

12  informal conference process, the department shall issue a

13  decision and order of determination and, where appropriate, a

14  final assessment, from which a taxpayer may seek an appeal as

15  provided under section 22.

16        (e) After the informal conference, the department shall

17  render a decision and order in writing, setting forth the reasons

18  and authority, and shall assess the tax, interest, and penalty

19  found to be due and payable. The decision and order are limited

20  to the subject of the informal conference as included in the

21  notice under subdivision (d).

22        (f) If the taxpayer does not protest the notice of intent to

23  assess within the time provided in subdivision (c), the

24  department may assess the tax and the interest and penalty on the

25  tax that the department believes are due and payable. An

26  assessment under this subdivision or subdivision (e) is final and

27  subject to appeal as provided in section 22. The final notice of

 1  assessment shall include a statement advising the person of a

 2  right to appeal.

 3        (3) If as a result of an audit it is determined that a

 4  taxpayer is owed a refund, the department shall send a notice to

 5  the taxpayer stating the amount of the refund the department

 6  believes is owed to the taxpayer as a result of the audit. The

 7  notice shall inform the taxpayer of his or her appeal rights. If

 8  the taxpayer disputes the findings of the audit, the taxpayer may

 9  serve written notice upon the department in the same manner as

10  provided for in subsection (2)(c) and the taxpayer is entitled to

11  the same informal conference and subsequent appeals as provided

12  for in this section.

13        (4) If a protest to the notice of intent to assess the tax

14  is determined by the department to be a frivolous protest or a

15  desire by the taxpayer to delay or impede the administration of

16  taxes administered under this act, a penalty of $25.00 or 25% of

17  the amount of tax under protest, whichever is greater, shall be

18  added to the tax.

19        (5) During the course of the informal conference under

20  subsection (2)(d), the taxpayer by written notice may convert his

21  or her contest of the assessment to a claim for a refund. The

22  written notice shall be accompanied by payment of the contested

23  amount. The informal conference shall continue and the department

24  shall render a decision and issue an order regarding the claim

25  for refund.

26        (6) For audits commenced after September 30, 2014, the

27  department must complete fieldwork and provide a written

 1  preliminary audit determination for any tax period no later than

 2  1 year after the period provided for in section 27a(2) without

 3  regard to the extension provided for in section 27a(3). The

 4  limitation described in this subsection does not apply to any tax

 5  period in which the department and the taxpayer agreed in writing

 6  to extend the statute of limitations described in section 27a(2).

 7        (7) For audits commenced after September 30, 2014, unless

 8  otherwise agreed to by the department and the taxpayer, the final

 9  assessment issued under subsection (2)(f) must be issued within 9

10  months of the date that the department provided the taxpayer with

11  a written preliminary audit determination unless the taxpayer,

12  for any reason, requests reconsideration of the preliminary audit

13  determination or the taxpayer requests an informal conference

14  under subsection (2)(c). A request for reconsideration by a

15  taxpayer permits, but does not require, the department to delay

16  the issuance of a final assessment under subsection (2)(f).

17        Sec. 27a. (1) If a person liable for a tax administered

18  under this act sells out his or her business or its stock of

19  goods or quits the business, the person shall make a final return

20  within 15 days after the date of selling or quitting the

21  business. The purchaser or succeeding purchasers, if any, who

22  purchase a going or closed business or its stock of goods shall

23  escrow sufficient money to cover the amount of taxes, interest,

24  and penalties as may be due and unpaid until the former owner

25  produces a receipt from the state treasurer or the state

26  treasurer's designated representative showing that the taxes due

27  are paid, or a certificate stating that taxes are not due. Upon

 1  the owner's written waiver of confidentiality, the department may

 2  shall, within 60 days of receipt of the request, release to a

 3  purchaser a business's known or estimated tax liability for the

 4  purposes of establishing an escrow account for the payment of

 5  taxes. The department may estimate tax liability based on prior

 6  returns and payments. If the department believes that a return

 7  made or payment does not supply sufficient information for an

 8  accurate determination, the department may make an estimate based

 9  on other available information. If the purchaser or succeeding

10  purchasers of a business or its stock of goods fail to comply

11  with the escrow requirements of this subsection, the purchaser is

12  personally liable for the payment of the taxes, interest, and

13  penalties accrued and unpaid by the business of the former owner.

14  The If the purchaser or succeeding purchasers of a business or

15  its stock of goods comply with the escrow requirements of this

16  subsection, the purchaser shall not be held liable for more than

17  the known or estimated tax liability disclosed by the department

18  and held in escrow. However, the purchaser shall not be held

19  liable if the department has failed to provide the information

20  requested within 60 days. For a purchaser or succeeding purchaser

21  that has not complied with the escrow requirements of this

22  section, the purchaser's or succeeding purchaser's personal

23  liability is limited to the fair market value of the business

24  less the amount of any proceeds that are applied to balances due

25  on secured interests that are superior to the lien provided for

26  in section 29(1).

27        (2) A deficiency, interest, or penalty shall not be assessed

 1  after the expiration of 4 years after the date set for the filing

 2  of the required return or after the date the return was filed,

 3  whichever is later. The taxpayer shall not claim a refund of any

 4  amount paid to the department after the expiration of 4 years

 5  after the date set for the filing of the original return. A

 6  person who has failed to file a return is liable for all taxes

 7  due for the entire period for which the person would be subject

 8  to the taxes. If a person subject to tax fraudulently conceals

 9  any liability for the tax or a part of the tax, or fails to

10  notify the department of any alteration in or modification of

11  federal tax liability, the department, within 2 years after

12  discovery of the fraud or the failure to notify, shall assess the

13  tax with penalties and interest as provided by this act, computed

14  from the date on which the tax liability originally accrued. The

15  tax, penalties, and interest are due and payable after notice and

16  hearing as provided by this act.

17        (3) The running of the statute of limitations is suspended

18  shall be extended for the following if the period exceeds that

19  described in subsection (2):

20        (a) The period pending a final determination of tax ,

21  including through audit, conference, hearing, and litigation of

22  liability for federal income tax or a tax administered by the

23  department and for 1 year after that period.

24        (b) The period for which the taxpayer and the state

25  treasurer have consented to in writing that the period be

26  extended.

27        (c) The period described in section 21(6) and (7) or pending

 1  the completion of an appeal of a final assessment.

 2        (d) A period of 90 days after a decision and order from an

 3  informal conference, or a court order that finally resolves an

 4  appeal of a decision of the department in a case in which a final

 5  assessment was not issued prior to appeal.

 6        (4) The running of the statute of limitations is suspended

 7  extended only as to those items that were the subject of the

 8  audit, conference, hearing, or litigation for federal income tax

 9  or a tax administered by the department. As used in this

10  subsection, "items that were the subject of the audit" means

11  items that share a common characteristic that were examined by an

12  auditor even if there was no adjustment to the tax as a result of

13  the examination. Items that share a common characteristic include

14  items that are reported on the same line on a tax return or items

15  that are grouped by ledger, account, or record or by class or

16  type of asset, liability, income, or expense.

17        (5) If a corporation, limited liability company, limited

18  liability partnership, partnership, or limited partnership

19  business liable for taxes administered under this act fails, for

20  any reason after assessment, to file the required returns or to

21  pay the tax due, any of its officers, members, managers of a

22  manager-managed limited liability company, or partners who the

23  department determines, based on either an audit or an

24  investigation, have control or supervision of, or responsibility

25  for, making the returns or payments is a responsible person is

26  personally liable for the failure for the taxes described in

27  subsection (14). The signature of any corporate officers,

 1  members, managers, or partners on returns or negotiable

 2  instruments submitted in payment of taxes is prima facie evidence

 3  of their responsibility for making the returns and payments. The

 4  dissolution of a corporation, limited liability company, limited

 5  liability partnership, partnership, or limited partnership

 6  business does not discharge an officer's, member's, manager's, or

 7  partner's a responsible person's liability for a prior failure of

 8  the corporation, limited liability company, limited liability

 9  partnership, partnership, or limited partnership to make business

10  to file a return or remit pay the tax due. The sum due for a

11  liability may be assessed and collected under the related

12  sections of this act. The department shall provide a responsible

13  person assessed under this section with notice of any amount

14  collected by the department from any other responsible person

15  determined to be liable under this subsection or purchaser

16  determined to be liable under subsection (1) that is attributable

17  to the assessment. The department shall not assess a responsible

18  person under this section more than 4 years after the date of the

19  assessment issued to the business. A responsible person may

20  challenge the validity of an assessment to the same extent that

21  the business could have challenged that assessment under sections

22  21 and 22 when originally issued. The department has the burden

23  to first produce prima facie evidence as described in subsection

24  (15) or establish a prima facie case that the person is the

25  responsible person under this subsection through establishment of

26  all elements of a responsible person as defined in subsection

27  (15). In a separate proceeding before the circuit court, a

 1  responsible person found to be liable for the assessment under

 2  this section may recover from other responsible persons an amount

 3  equal to the assessment or portion of the assessment based on

 4  that person's proportionate liability for the assessment as

 5  determined in that proceeding. Before assessing a responsible

 6  person as liable under this subsection for the tax assessed to

 7  the business, the department shall first assess a purchaser or

 8  succeeding purchaser of the business personally liable under

 9  subsection (1) if the department has information that clearly

10  identifies a purchaser or succeeding purchaser under subsection

11  (1) and establishes that the assessment of the purchaser or

12  succeeding purchaser would permit the department to collect the

13  entire amount of the tax assessment of the business. The

14  department may assess a responsible person under this subsection

15  notwithstanding the liability of a purchaser or succeeding

16  purchaser under subsection (1) if the purchaser or succeeding

17  purchaser fails to pay the assessment.

18        (6) Notwithstanding any other provision of this act, upon

19  request of a responsible person who was issued an intent to

20  assess by the department under section 21 for liability under

21  subsection (5), the department shall disclose any documents

22  considered in the department's audit or investigation in

23  determining that the person is a responsible person and is

24  personally liable for the assessment and any other documents that

25  the tribunal or court determines are necessary for a fair

26  adjudication of a person's liability under subsection (5).

27  (7) (6) Notwithstanding the provisions of subsection (2), a

 1  claim for refund based upon the validity of a tax law based on

 2  the laws or constitution of the United States or the state

 3  constitution of 1963 shall not be paid unless the claim is filed

 4  within 90 days after the date set for filing a return.

 5  (8) (7) Subsection (6) (7) does not apply to a claim for the

 6  refund of a tax paid for the 1984 tax year or a tax year after

 7  the 1984 tax year on income received as retirement or pension

 8  benefits from a public retirement system of the United States

 9  government if the claimant waives any claim for the refund of

10  such a tax paid for a tax year before 1984. Claims for refunds to

11  which this subsection applies shall be paid in accordance with

12  the following schedule:

13 Refunds for              Payable on

14 tax year: or after:

15 1988 and 1987            July 1, 1990

16 1986                     July 1, 1991

17 1985                     July 1, 1992

18 1984                     July 1, 1993

19  (9) (8) Notwithstanding any other provision in this act, for

20  a taxpayer that filed a tax return under former 1975 PA 228 that

21  included in the tax return an entity disregarded for federal

22  income tax purposes under the internal revenue code, both of the

23  following shall apply:

24        (a) The department shall not assess the taxpayer an

25  additional tax or reduce an overpayment because the taxpayer

26  included an entity disregarded for federal income tax purposes on

 1  its tax return filed under former 1975 PA 228.

 2        (b) The department shall not require the entity disregarded

 3  for federal income tax purposes on the taxpayer's tax return

 4  filed under former 1975 PA 228 to file a separate tax return.

 5  (10) (9) Notwithstanding any other provision in this act, if

 6  a taxpayer filed a tax return under former 1975 PA 228 that

 7  included in the tax return an entity disregarded for federal

 8  income tax purposes under the internal revenue code, then the

 9  taxpayer shall not claim a refund based on the entity disregarded

10  for federal income tax purposes under the internal revenue code

11  filing a separate return as a distinct taxpayer.

12  (11) (10) Notwithstanding any other provision in this act,

13  the department shall not assess a tax or reduce an overpayment,

14  and shall approve a claim for a refund of any tax paid, under

15  former 1975 PA 228 and subject to the statute of limitations for

16  an individual, estate, or person organized for estate or gift

17  planning purposes for amounts received, income, or gain other

18  than those from transactions, activities, and sources in the

19  regular course of the person's trade or business. For purposes of

20  this subsection, all of the following apply:

21        (a) Receipts, income, and gain that are from transactions,

22  activities, and sources in the regular course of the person's

23  business include, but are not limited to, amounts derived from

24  the following:

25        (i) Tangible and intangible property if the acquisition,

26  rental, lease, management, or disposition of the property

27  constitutes integral parts of the person's regular trade or

 1  business operations.

 2        (ii) Transactions in the course of the person's trade or

 3  business from stock and securities of any foreign or domestic

 4  corporation and dividend and interest income.

 5        (iii) Isolated sales, leases, assignments, licenses,

 6  divisions, or other infrequently occurring dispositions,

 7  transfers, or transactions involving tangible, intangible, or

 8  real property if the property is or was used in the person's

 9  trade or business operation.

10        (iv) The sale of an interest in a business that constitutes

11  an integral part of the person's regular trade or business.

12        (v) The lease or rental of real property.

13        (b) Receipts, income, and gain that are not from

14  transactions, activities, and sources in the regular course of

15  the person's trade or business include, but are not limited to,

16  amounts derived from the following:

17        (i) Investment activity, including interest, dividends,

18  royalties, and gains from an investment portfolio or retirement

19  account, if the investment activity is not part of the person's

20  trade or business.

21        (ii) The disposition of tangible, intangible, or real

22  property held for personal use and enjoyment, such as a personal

23  residence or personal assets.

24  (12) (11) Notwithstanding any other provision in this act,

25  the department shall not assess a tax or reduce an overpayment,

26  and shall approve a claim for a refund for any tax paid, under

27  former 1975 PA 228 and subject to the statute of limitations for

 1  receipts, income, or gain derived from investment activity other

 2  than receipts, income, or gain from transactions, activities, and

 3  sources in the regular course of the person's trade or business

 4  by a person that is organized exclusively to conduct investment

 5  activity and that does not conduct investment activity for any

 6  person other than an individual or a person related to that

 7  individual or by a common trust fund established under the

 8  collective investment funds act, 1941 PA 174, MCL 555.101 to

 9  555.113. For purposes of this subsection, a person is related to

10  an individual if that person is a spouse, brother or sister,

11  whether of the whole or half blood or by adoption, ancestor,

12  lineal descendant of that individual or related person, or a

13  trust benefiting that individual or 1 more persons related to

14  that individual.

15  (13) (12) The filing of a return includes the filing of a

16  combined, consolidated, or composite return whether or not any

17  tax was paid and whether or not the taxpayer reported any amount

18  in the tax line including zero.

19        (14) Subsection (5) applies to all of the following taxes

20  administered under this act:

21        (a) For assessments issued to responsible persons before

22  January 1, 2014, taxes administered under this act.

23        (b) For assessments issued to responsible persons after

24  December 31, 2013, all of the following:

25        (i) Taxes levied under the general sales tax act, 1933 PA

26  167, MCL 205.51 to 205.78.

27        (ii) Taxes levied under the use tax act, 1937 PA 94, MCL

 1  205.91 to 205.111, that are required to be collected or were

 2  collected from or on behalf of a third person for remittance to

 3  the state.

 4        (iii) Taxes levied under the tobacco products tax act, 1993 PA

 5  327, MCL 205.421 to 205.436.

 6        (iv) Taxes levied under the motor fuel tax act, 2000 PA 403,

 7  MCL 207.1001 to 207.1170.

 8        (v) Taxes levied under the motor carrier fuel tax act, 1980

 9  PA 119, MCL 207.211 to 207.234.

10        (vi) Withholding and remittance of income taxes levied under

11  the income tax act of 1967, 1967 PA 281, MCL 206.1 to 206.713.

12        (vii) Any other tax administered under this act that a person

13  is required to collect from or on behalf of a third person, to

14  truthfully account for and to pay over to this state.

15        (15) As used in subsections (5) and (6):

16        (a) "Business" means a corporation, limited liability

17  company, limited liability partnership, partnership, or limited

18  partnership.

19        (b) "Responsible person" means an officer, member, manager

20  of a manager-managed limited liability company, or partner for

21  the business who controlled, supervised, or was responsible for

22  the filing of returns or payment of any of the taxes described in

23  subsection (14) during the time period of default and who, during

24  the time period of default, willfully failed to file a return or

25  pay the tax due for any of the taxes described in subsection

26  (14). The signature, including electronic signature, of any

27  officer, member, manager of a manager-managed limited liability

 1  company, or partner on returns or negotiable instruments

 2  submitted in payment of taxes of the business during the time

 3  period of default, is prima facie evidence that the person is a

 4  responsible person. A signature, including electronic signature,

 5  on a return or negotiable instrument submitted in payment of

 6  taxes after the time period of default alone is not prima facie

 7  evidence that the person is a responsible person for the time

 8  period of default but may be considered along with other evidence

 9  to make a prima facie case that the person is a responsible

10  person. With respect to a return or negotiable instrument

11  submitted in payment of taxes before the time period of default,

12  the signature, including electronic signature, on that document

13  along with evidence, other than that document, sufficient to

14  demonstrate that the signatory was an officer, member, manager of

15  a manager-managed limited liability company, or partner during

16  the time period of default is prima facie evidence that the

17  person is a responsible person.

18        (c) "Time period of default" means the tax period for which

19  the business failed to file the return or pay the tax due under

20  subsection (5) and through the later of the date set for the

21  filing of the tax return or making the required payment.

22        (d) "Willful" or "willfully" means the person knew or had

23  reason to know of the obligation to file a return or pay the tax,

24  but intentionally or recklessly failed to file the return or pay

25  the tax.

26        Sec. 30. (1) The department shall credit or refund an

27  overpayment of taxes; taxes, penalties, and interest erroneously

 1  assessed and collected; and taxes, penalties, and interest that

 2  are found unjustly assessed, excessive in amount, or wrongfully

 3  collected with interest at the rate calculated under section 23

 4  for deficiencies in tax payments.

 5        (2) A taxpayer who paid a tax that the taxpayer claims is

 6  not due may petition the department for refund of the amount paid

 7  within the time period specified as the statute of limitations in

 8  section 27a. If a tax return reflects an overpayment or credits

 9  in excess of the tax, the declaration of that fact on the return

10  constitutes a claim for refund. If the department agrees the

11  claim is valid, the amount of overpayment, penalties, and

12  interest shall be first applied to any known liability as

13  provided in section 30a, and the excess, if any, shall be

14  refunded to the taxpayer or credited, at the taxpayer's request,

15  against any current or subsequent tax liability. Claims for

16  refunds, other than those made under part 1 of the income tax act

17  of 1967, 1967 PA 281, MCL 206.1 to 206.532, that have not been

18  approved, denied, or adjusted within 1 year of the date received

19  may be treated as denied at the election of the taxpayer, and may

20  be appealed by the taxpayer in accordance with section 22.

21        (3) The department shall certify a refund to the state

22  disbursing authority who shall pay the amount out of the proceeds

23  of the tax in accordance with the accounting laws of the state.

24  Interest at the rate calculated under section 23 for deficiencies

25  in tax payments shall be added to the refund commencing 45 days

26  after the claim is filed or 45 days after the date established by

27  law for the filing of the return, whichever is later. Interest on

 1  refunds intercepted and applied as provided in section 30a shall

 2  cease as of the date of interception. Refunds for amounts of less

 3  than $1.00 shall not be paid.

 4        (4) Beginning January 1, 2014, in addition to and separate

 5  from the interest added to a refund under subsection (3), for

 6  refunds for taxes imposed under part 1 of the income tax act of

 7  1967, 1967 PA 281, MCL 206.1 to 206.532, the state disbursing

 8  authority shall add interest to refunds that are not paid within

 9  1 of the following dates for the applicable tax year:

10        (a) May 1, for returns received by the department on or

11  before March 1 of the applicable tax year.

12        (b) Sixty days from the date the return was received by the

13  department for returns received by the department after March 1

14  of the applicable tax year.

15        (5) Interest described in subsection (4) shall be paid at a

16  rate of 3% per annum, calculated from the date the original

17  return was due under section 315(1) of the income tax act of

18  1967, 1967 PA 281, MCL 206.315, and until the refund is paid, if

19  all of the following conditions are met:

20        (a) The refund is due on an original return which was timely

21  filed under section 315(1) of the income tax act of 1967, 1967 PA

22  281, MCL 206.315.

23        (b) The refund is not adjusted by the department.

24        (c) The return is not subject to section 27a(3) or (4)

25  except for audit by the department.

26        (d) The return is complete for processing purposes with no

27  calculation errors and contains all required information as

 1  prescribed by the department under section 315(1)(d) of the

 2  income tax act of 1967, 1967 PA 281, MCL 206.315, including any

 3  state and federal returns, forms, or schedules necessary to

 4  process the return.

 5        (e) The taxpayer who has filed a complete return under

 6  subdivision (d) has complied with the department's request, if

 7  any, for additional documentation or information within 30 days

 8  of that request.

 9        (f) No portion of the refund is subject to interception

10  under section 30a.

11        (g) The amount to be refunded is more than $1.00.