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, c laims-related expenses, claims paid for non -
residents, 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.