Mich. Admin. Code R. 550.403 - Recordkeeping; examination of documents

Rule 3.

(1) The department, through its field auditors and other employees, may examine the books, records and papers of any person liable for the assessment.

(2) Every person subject to the assessment must keep and preserve suitable and adequate records to enable such person, as well as the state, to determine the correct amount of the assessment for which the person is liable. Failure to produce and keep records for the purpose of examination by the department will be considered willful noncompliance with a tax law.

(3) A person subject to the assessment must retain all quarterly worksheets as well as all source documents used in the preparation of the quarterly worksheets and the annual returns filed pursuant to the Act. Source documents may include, but are not limited to, documents and records maintained in the ordinary course of business containing claims-related information and statements or billings for medical services.

(4) A person subject to the assessment must also retain all documents and records used to determine eligibility for, and the amount of, each of the exclusions from the assessment indicated on the quarterly worksheets and annual returns, including, but not limited to, documents and records supporting recoveries against claims, claims-related expenses, claims paid for nonresidents, claims paid for services not performed in Michigan, reimbursements made to individuals under federally authorized health spending accounts, and claims paid pursuant to accident, disability, long-term care, automobile, workers compensation, or property and casualty coverage.

Notes

Mich. Admin. Code R. 550.403

2013 AACS