The Michigan Department of Treasury (Department) conducts yearly audits in accordance with Section 8 of Michigan Compiled Law 211.7cc to ensure that only persons eligible for a PRE receive the exemption. The Department is responsible for these audits in select counties. Audits generally cover the current tax year and the three immediately preceding tax years. During the audit process, the Department sends a PRE Audit Letter and a PRE Audit Questionnaire, Form 4632 regarding questionable PREs to obtain additional information on the property and/or owner(s). The Questionnaire must be completed and returned within 30 days. If you receive a Questionnaire but no longer own the property listed on the top of the Questionnaire, you must still complete it and return it within 30 days. If the Questionnaire is not returned in a timely manner, the PRE on the property may be denied. The denial of the PRE may require you to pay additional taxes and interest for the years you improperly received the exemption benefit, up to four years even if you no longer own the property. Refer to the Principal Residence Exemption Interest and Tax Calculators to estimate the amount of additional taxes and interest that may be due as a result of the denial. The frequently asked questions sheet regarding PRE Denials by the Department of Treasury provides additional information regarding the denial and appeal process.

If you have a question about how to complete the Questionnaire, please contact the PRE Audit Call Center at (888) 909-2799, between 9 a.m. and 5 p.m., Monday through Friday. You can also e-mail your question to PRE@tma1.com. However, if you have questions regarding general PRE issues or an appeal of a PRE denial, please contact the PRE Unit at (517) 335-1950 or e-mail your question to PTE-Section@michigan.gov. Your local assessor will not be able to respond to questions regarding Michigan Department of Treasury audits.