Mich. Admin. Code R 567.9 — Examination entrance conference

Rule 9 (1) The administrator shall determine before or as part of the entrance conference
whether the person is an “eligible holder,” the basis for that determination, and whether the
person has elected to follow the streamlined audit process. All of the following apply:
(a) If the eligible holder claims its status based on a perce ntage of payroll or percentage of
real and tangible personal prope rty, except inventory, owned or rented in this state, the
percentage must be 20% or greater than the percentage in paragraph (i) or (ii) of this subdivision:
(i) The numerator is the aggregate Michigan payroll during the entire 4 years that follow the
dormancy period and the denominator is the aggregate of all payroll during the entire 4 years that
follow the dormancy period.
(ii) The numerator is the aggr egate of all Michigan real and tangible personal property,
except inventory, owned or rented in Michigan during the entire 4 years that follow the
dormancy period and the denominator is the aggregate of all rea l and tangible personal property,
except inventory, owned or rented everywhere during the entire 4 years that follow the dormancy
period.
(b) If the eligible holder claims its status based on employ ment in this state of the majority
of officers that direct, control, and coordinate the activities of the business, the percentage must
be greater than 50% where the numerator is the aggregate number of days all officers were
employed in this state during the entire 4 years that follow th e dormancy period and the
denominator is the aggregate number of days all officers were e mployed anywhere during the
entire 4 years that follow the dormancy period. For purposes o f this subrule, a “day” includes
any part of a calendar day.
(c) An eligible holder wholly o wns a subsidiary corporation i n this state if it directly owns
100% of the subsidiary corporation or if it owns 100% of the subsidiary corporation through 1 or
more wholly owned intermediate subsidiaries.
(2) If the person subject to examination disputes the determination that it is not an “eligible
holder,” the person may request a redetermination by the admini strator. Within 30 business
days of the determination, the person shall provide the basis f or disputing the determination and
may provide additional supporting information to the administra tor. Within 30 business days of
receipt of request for redetermination, the administrator shall determine if the person is an
eligible holder and shall notif y the person of the decision. I f the administrator is not able to
provide a response within 30 business days, the administrator w ill provide the requestor with the
expected date for a response, not to exceed 15 business days.
(3) The auditor shall contact t he person subject to examinati on to schedule an entrance
conference within 30 days from the date of the notice provided in R 567.5. At this time, a
proposed confidentiality agreement shall also be provided to th e person subject to examination.
If contact with the person subject to the examination is not made within 30 days, the auditor shall
notify the administrator or his or her designee to explain the cause for delay.
(4) At the entrance conference, the auditor shall provide the person the following
information:
(a) Identification of the states participating in the examination.
(b) A description of the components and stages of the examination.
(c) Expected duration of the examination.
(d) A description of the respective responsibilities of the p erson subject to examination and
the auditor.
(e) Identification of the potential types of property that may be subject to examination.
(f) An initial records request.
(g) Identification of the time period that is subject to examination.
(h) The applicable dormancy periods for each property type su bject to examination as well
as the statutory citations that govern the dormancy period for each property type.
(i) Explanation of the principle s of unclaimed property law, applicable case law, and the
process of reporting property to multiple states.
(j) Explanation of the examination methods, including estimat ion techniques that may be
used by the auditor for those periods where records are not available or are insufficient.
( k ) A d o c u m e n t t h a t s u m m a r i z e s t h e i t e m s d i s c u s s e d a t t h e e x amination entrance
conference.