Signaling a positive step in the ongoing effort to reform the unclaimed property audit process, both the Michigan House and Senate last week concurred on budget language to more proactively monitor the Michigan Department of Treasury audit practices.
In addition, the General Government budget conference committee concurred last week on language that will hold Michigan Treasury’s “feet to the fire” by requiring the Department to recommend changes to the unclaimed property audit process by March 31, 2016.
As we’ve previously reported, the Michigan Chamber opposes the use of third-party, contingency fee tax and escheats auditors who are paid an incentive-based commission based on their audit findings. This practice is shrouded with an inherent conflict of interest if auditors are paid more money based on placing more of your property or income on the tax rolls!
Unfortunately, Michigan continues to use these outside firms for audits conducted under the Unclaimed Property Act (escheats.)