The Michigan Chamber last week testified in strong opposition to the State of Michigan’s continued use of third-party contingent-fee auditors.
This style of auditing relies on third-party auditing firms to audit a business while being paid a percentage of the total amount of the value of property or taxable transactions added to the assessment roll. Paying an auditor more, based on “finding” more property, creates a serious potential conflict of interest, incentivizes the auditor to be overly aggressive and to “interpret” the law to its advantage – and cherry-pick the deepest pockets for audits.
The Michigan Chamber is actively seeking legislative support to end this type of payment arrangement that is currently embedded in the Michigan budget.
For more information, please contact Tricia Kinley at email@example.com or (517) 371-7669.