Michigan Instruction Booklet for Financial Institutions
Extracted from PDF file 2020-michigan-form-4599.pdf, last modified January 2021
Instruction Booklet for Financial InstitutionsMICHIGAN 2020 Business Tax (MBT) FINANCIAL INSTITUTIONS This booklet contains information on c o m p l e t i n g a M i c h i g a n B u s i n e s s Ta x r e t u r n f o r c a l e n d a r ye a r 2 0 2 0 o r a f i s c a l ye a r e n d i n g i n 2 0 21 . W W W. M I FA S T F I L E . O R G E-filing your return is easy, fast, and secure! V isit Treasury’s Web site at www.MIfastfile.org for a list of e-file resources and how to find an e-file provider. F ILING D UE DATE: CALE N DA R F IL ER S — A P R IL 3 0 , 2 020 F I S CA L F ILER S — T H E LA S T DAY O F THE FO U R T H M O N T H A F T ER T H E EN D O F T H E TA X Y EA R . W W W. M I C H I G A N . G OV/ TA X E S This booklet is intended as a guide to help complete your return. It does not take the place of the law. Michigan Department of Treasury — 4599 (Rev. 01-21) Important Information for 2020 Michigan Business Tax (MBT) Election Only those taxpayers that have been approved to receive, have received, or have been assigned a certificated credit that has not yet fully been claimed or utilized may elect to be MBT taxpayers. If a taxpayer files an MBT return for its first tax year beginning after December 31, 2011, the taxpayer makes the election to file and pay under the MBT until the certificated credit and any carryforward of that credit are exhausted. Except for taxpayers with certain qualifying brownfield redevelopment or historical preservation certificated credits, the election must be made for the first tax year beginning after December 31, 2011. Once the election is made and the return is submitted, the taxpayer may not amend the return to revoke the election. Find a list of certificated credits in the General Information for Standard Taxpayers in the MBT Forms and Instructions for Standard Taxpayers (Form 4600). Helpful Hints for Completing an MBT Return MBT UBG Combined Filing Schedule for Financial Institutions (Form 4752) Members of a UBG will report their data on Form 4752. Once all member data is combined and eliminations are calculated, these final figures will carry to Form 4590. All credits claimed on Form 4752 must be supported by the applicable forms and these forms must be included when filing the return. certificate, or reassignment certificate is issued under section 435 to a taxpayer, beginning on and after January 1, 2012, the taxpayer may elect to claim an accelerated refund for 90 percent of the amount of that certificate. If section 437 or 435 provides that payment of a credit will be made over a period of years or limits the annual amount of a payment, an accelerated refund may only be claimed for the amount payable in the year claimed. However, a taxpayer claiming the Special Consideration Historic Preservation Credit under section 435(20) may elect to claim an accelerated refund for the balance of the credit, but the amount of that refund shall be equal to 86 percent of the amount of the credit. For more details, see the Request for Reduced Refundable Credit Payout for the Brownfield Redevelopment Credit and Historic Preservation Credit (Form 4889). Michigan Tax Forms are online at www.michigan.gov/taxes. An accelerated credit refund will be paid within 60 days after Form 4889 is filed. If a taxpayer files Form 4889 and claims an accelerated credit, the taxpayer makes the election to file and pay under the MBT until the certificated credit and any carryforward of that credit are exhausted. A taxpayer claiming an accelerated credit on Form 4889 must also file an annual MBT return. Brief Overview of the CIT UBG members may have different tax year-ends. The combined return must include each member whose tax year ends with or within the tax year of the Designated Member (DM). The CIT took effect January 1, 2012, and replaces the MBT, except for certain businesses that wish to claim certificated credits. Among the highlights of the CIT: Amended Returns To amend a current or prior year annual return, complete the Form 4590 that is applicable for that year, check the box in the upper-right corner of the return, and attach a separate sheet explaining the reason for the changes. Include an amended federal return or a signed and dated Internal Revenue Service (IRS) audit document. Include all schedules filed with the original return, even if not amending that schedule. Enter the figures on the amended return as they should be. Do not include a copy of the original return with your amended return. • The CIT applies to all financial institutions unless the financial institution is able to and does make the MBT election. • Taxpayers will be required to file quarterly estimated returns as well as an annual return. • Annual payments will still be due on the prescribed due date of the annual return. • The CIT is equal to 0.29% of net capital for financial institutions. • There are no credits available for financial institutions under the CIT. • An entity that has received, has been approved to receive, or has been assigned certain certificated tax credits under MBT may elect to continue to file and pay under the MBT in lieu of the CIT. This election must be made with the annual return filed for first tax period beginning after 2011 for most certificated credits. The election is also made if a taxpayer files a Form 4889, Claim for Accelerated Credit. • Estimated payments will still be due on the prescribed due dates for quarterly estimated returns. Accelerated Credits A taxpayer with a certificated credit under section 435 (Historic) or 437 (Brownfield) of the Michigan Business Tax Act (MBTA), or any unused carryforward of such certificated credit that may be claimed in a tax year ending after December 31, 2011, may elect to pay the tax imposed by the MBTA in the tax year in which that certificated credit may be claimed in lieu of the CIT. If a person with a certificated credit under section 435 or 437 that elects to pay the MBT is a member of a Unitary Business Group (UBG), the Designated Member of the UBG, and not the member, shall file a UBG return and pay the tax, if any, under the MBTA and claim that certificated credit. For a tax year beginning after December 31, 2011, if a certificate of completion, assignment certificate, or component completion certificate is issued under section 437 to a taxpayer, or if a certificate of completed rehabilitation, assignment 1 2020 General Information for Financial Institutions Standard Taxpayers and Insurance Companies: See the Michigan Business Tax (MBT) Instruction Booklet for Standard Taxpayers (Form 4600) or the MBT Instruction Booklet for Insurance Companies (Form 4592) at www.michigan.gov/taxes. This booklet is intended as a guide to help complete the MBT return. It does not take the place of the law. • MEGA Photovoltaic Technology Credit (Form 4574) • Film Production Credit (Form 4574). Who Files a Financial Return? Using This Booklet Only those taxpayers with a certificated credit, which is awarded but not yet fully claimed or utilized, may elect to be MBT taxpayers. If a taxpayer files an MBT return and claims a certificated credit, the taxpayer makes the election to file and pay under the MBT until the certificated credit and any carryforward of that credit are exhausted. Once the election is made and the return is submitted, the taxpayer may not amend the return to revoke the election. This MBT financial institution booklet includes forms and instructions for financial institutions. These forms are designed for calendar year filers, and fiscal filers with a tax year ending in 2014. Read the General Information first. It is recommended that taxpayers and tax preparers also briefly review the instructions for all forms. File an MBT Annual Return for Financial Institutions (Form 4590) if the taxpayer is any of the following and holds a certificated credit: The franchise tax is imposed upon the tax base of the financial institution after allocation or apportionment to Michigan at the rate of 0.235 percent. There is no filing threshold for financial taxpayers. • A bank holding company, a national bank, a state chartered bank, an office of thrift supervision chartered bank or thrift institution, or a savings and loan holding company other than a diversified savings and loan holding company as defined in 12 United States Code (USC) 1467a(a)(1)(F) or a federally chartered Farm Credit System institution. • Any person, other than an insurance company subject to the tax imposed under Chapter 2A of the MBT Act, who is directly or indirectly owned by an entity described above and is a member of the Unitary Business Group (UBG). (See the definition of UBG in the “UBGs and Combined Filing” section of this General Information.) This generally refers to all non-insurance taxpayers that are owned by and unitary with financial institutions. • A UBG consisting of entities described above. What is a Certificated Credit Certificated credits consist of MBT credits that, under MCL 208.1107, are allowed to be applied against the calculated CIT liability, as provided under MCL 208.1500(4). The certificated credits are either nonrefundable or refundable credits. Below is the list of all certificated credits potentially available to financial institutions, and the respective form used for their calculation. Nonrefundable Certificated Credits: • Renaissance Zone Credit (Forms 4595 and 4573) • Historic Preservation Credit (Forms 4573 and 4584) • Brownfield Redevelopment Credit (Forms 4584 and 4573) • Film Infrastructure Credit (Form 4573) • MEGA Poly-Silicon Energy Cost Credit and Miscellaneous MEGA Battery Credits (Forms 4584 and 4573). Refundable Certificated Credits: • Historic Preservation Credit (Form 4573) • Brownfield Redevelopment Credit (Forms 4584 and 4573) • MEGA Employment Tax Credit (Form 4574) 2 Overview of MBT for Financial Institutions In addition, there is an annual surcharge imposed at the rate of 23.4 percent. NOTE: Trust-only banks do not pay a surcharge. Nonrefundable and refundable credits are available for financial institutions to help reduce the initial MBT liability. This includes a limited allowance for Single Business Tax (SBT) credit carryforwards. These forms are available online at www.michigan.gov/taxes. Required CIT Comparison If choosing to file MBT in 2014 to claim certain certificated credits, taxpayers are required to calculate MBT liability as the higher of MBT liability or hypothetical CIT liability. A taxpayer must pay the higher of the two or take the lesser refund. A taxpayer calculates the franchise tax and surcharge of the MBT and applies all credits, including certificated credits, deductions, and exemptions available under the MBT. Then, as if they were subject to the CIT, taxpayers calculate the franchise tax under the CIT and apply deductions available under the CIT. The hypothetical CIT liability is then reduced (not below to zero) by the amount of certificated nonrefundable credit used to offset the MBT liability. The hypothetical CIT liability offset by certificated nonrefundable MBT credits is further reduced by the total amount of certificated refundable credits claimed under the MBT liability calculation, resulting in the taxpayers’ final hypothetical CIT liability. Taxpayers’ final MBT liability consists of the higher of the calculated MBT and hypothetical CIT liabilities. If both MBT and hypothetical CIT liabilities result in tax refunds (negative liability), taxpayers are entitled to the lower refund amount.” Specific forms are provided to perform the MBT to CIT comparison and determine the tax liability or refund. The Michigan Schedule of Corporate Income Tax Liability for a Michigan Business Tax Filer (Form 4946) is used for the standard taxpayer comparison. The Michigan Schedule of Corporate Income Tax Liability for a Michigan Business Tax Insurance Filer (Form 4974) is used for the insurance company’s comparison. The Michigan Schedule of Corporate Income Tax Liability for a Michigan Business Tax Financial Filer (Form 4975) is used for the financial institution’s comparison. Amending Estimates If, after making payments, the estimated tax is substantially different than originally estimated, recompute the tax and adjust the payment in the next quarter. Filing MBT/CIT Quarterly Tax Estimates for 2019 Michigan has an enforced CIT e-file mandate. Software developers producing CIT tax preparation software and computer-generated forms must support e-file for all eligible Michigan forms that are included in their software package. All eligible CIT returns prepared using tax preparation software or computer-generated forms must be e-filed. If estimated liability for the year is reasonably expected to exceed $800, a taxpayer must file estimated returns. A taxpayer may remit quarterly estimated payments by check with a Corporate Income Tax Quarterly Return (Form 4913) or may remit monthly or quarterly estimated payments electronically by Electronic Funds Transfer (EFT). When payments are made by EFT, Form 4913 is not required. Estimated returns and payments for calendar year taxpayers are due to Treasury by April 15, July 15, October 15, and January 15 of the following year. Fiscal year taxpayers should make returns and payments by the appropriate due date which is fifteen days after the end of each fiscal quarter. The sum of estimated payments for each quarter must always reasonably approximate the liability for the quarter. NOTE: Your debit transaction will be ineligible for EFT if the bank account used for the electronic debit is funded or otherwise associated with a foreign account to the extent that the payment transaction would qualify as an International ACH Transaction (IAT) under NACHA Rules. Contact your financial institution for questions about the status of your account. Contact the Michigan Department of Treasury’s (Treasury) EFT Unit at 517-636-6925 for alternate payment methods. The estimated payment made with each quarterly return must be computed on the actual CIT for the quarter, or 25 percent of the estimated total liability if paying a CIT liability. To avoid interest and penalty charges, estimated payments must equal at least 85 percent of the total liability for the tax year and the amount of each estimated payment must reasonably approximate the tax liability for that quarter. If the prior year’s tax is $20,000 or less, estimated tax may be based on the prior year’s total tax liability paid in four equal installments. (“Four equal installments” describes the minimum pace of payments that will satisfy this safe harbor.) If the prior year’s tax liability was reported for a period less than 12 months, this amount must be annualized for purposes of both the $20,000 ceiling and calculating the quarterly payments due under this method. Payments at a more accelerated pace also will qualify. If the year’s tax liability is $800 or less, estimates are not required. NOTE: For those continuing to file MBT, reliance on the tax liability of the prior year as a means to avoid interest and penalty charges is only allowed if you had business activity in Michigan in that prior year. A return must be filed to establish the tax liability for that prior year, even if gross receipts in the prior year were less than $350,000. In addition, if your business was not in existence in the preceding year, no safe harbor exists. In such a case, estimates must be based on the MBT liability for the current year. For those filing CIT, there is no safe harbor in this first year of CIT filing. The estimates must equal at least 85 percent of the total liability as stated above. Electronic Filing of MBT Returns Treasury will be enforcing the CIT e-file mandate. The enforcement includes not processing computer-generated paper returns that are eligible to be e-filed. A notice will be mailed to the taxpayer, indicating that the taxpayer’s return was not filed in the proper form and content and must be e-filed. Payment received with a paper return will be processed and credited to the taxpayer’s account even when the return is not processed. Treasury will continue to accept certain Portable Document Format (PDF) attachments with CIT e-filed returns. A current list of defined attachments is available in the CIT “Michigan Tax Preparer Handbook for Electronic Filing Programs,” which is available on the Treasury Web site at www.MIfastfile.org by clicking on “Tax Preparer,” then “Corporate Income Tax Handbook” for the applicable tax year. Follow your software instructions for submitting attachments with an e-filed return. If the MBT return includes supporting documentation or attachments that are not on the predefined list of attachments, the return can still be e-filed. Follow your software instructions for including additional attachments. The tax preparer or taxpayer should retain file copies of all documentation or attachments. For more information and program updates, including exclusions from e-file, visit the e-file Web site at www.MIfastfile.org. The taxpayer may be required to e-file its federal return. Visit the Internal Revenue Service (IRS) Web site at www.irs.gov for more information on federal e-file requirements and the IRS Federal/State Modernized e-File (MeF) program. Complete Federal Tax Forms First Before preparing MBT returns, complete all federal tax forms. These forms may include: • Fiduciaries — U.S. Form 1041, 1065, and related Schedules C, C-EZ, D, E, K, 4797, and 8825. • Corporations — U.S. Form 1120, 1120-S, and Schedules D, K, 851, 940, 4562, 4797, and 8825. • Limited Liability Companies (LLCs) — federal forms listed above, depending on how federal returns have been filed. Reference these federal forms to complete Form 4590. Copies of certain pages from these federal forms must also be attached to the annual return filed. See the instructions for Form 4590 for further details. 3 Completing Michigan Forms Treasury captures the information from paper MBT returns using an Intelligent Character Recognition process. If completing a paper return, avoid unnecessary delays caused by manual processing by following the guidelines below so the return is processed quickly and accurately. • Use black or blue ink. Do not use pencil, red ink, or felt tip pens. Do not highlight information. • Print using capital letters (UPPER CASE). Capital letters are easier to recognize. • Print numbers like this: 012345678. Do not put a slash through the zero ( ) or seven ( 7). • Fill check boxes with an [X]. Do not use a check mark [ a]. • Leave lines/boxes blank if they do not apply or if the amount is zero, unless otherwise instructed. • Do not enter data in boxes filled with Xs. • Do not write extra numbers, symbols, or notes on the return, such as cents, dashes, decimal points (excluding percentages), or dollar signs, unless otherwise instructed. Enclose any explanations on a separate sheet unless instructed to write explanations on the return. • Date format, unless otherwise specified, should be in the following format: MM-DD-YYYY. Use dashes (-) rather than slashes (/). • Enter phone numbers using dashes (e.g., 517-555-5555); do not use parentheses. • Stay within the lines when entering information in boxes. • Report losses and negative amounts with a negative sign in front of the number (do not use parentheses). For example, a loss in the amount of $22,459 should be reported as -22,459. • Percentages should be carried out four digits to the right of the decimal point. Do not round percentages. For example, 24.154266 percent becomes 24.1542 percent. When converting a percentage to a decimal number, carry numbers out six digits to the right of the decimal point. For example, 24.154266 percent becomes 0.241542. • Report all amounts in whole dollars. Round down amounts of 49 cents or less. Round up amounts of 50 cents or more. If cents are entered on the form, they will be treated as whole dollar amounts. Suggested Order of Analysis and Preparation of an MBT Annual Return First, determine whether the taxpayer has a certificated credit. If the financial institution taxpayer does not have a certificated credit, it is subject to the CIT. Additionally, for all certificated credits other than qualifying Historic Preservation or Brownfield credits, the taxpayer must have made the election for its first tax year ending after December 31, 2011, in order to continue under the MBT. For a taxpayer using Form 4590, first complete lines 1 through 26. At that point, if any nonrefundable credits will be claimed, begin the MBT Nonrefundable Credits Summary (Form 4568), which serves several important functions: • Acts as a checklist of nonrefundable credits • Identifies the order in which nonrefundable credits must be claimed 4 • Identifies the form on which each nonrefundable credit is calculated • Tracks tax liability as it is reduced by each credit in proper order • Identifies (where applicable) the point at which tax liability reaches zero and no further nonrefundable credits may be claimed in the current filing period. Complete Form 4568 from top to bottom. For each credit the taxpayer qualifies for, calculate the credit as identified on the appropriate form and bring the result back to the appropriate line on Form 4568. After total nonrefundable credits are determined on Form 4568, line 40, carry the figure to Form 4590, line 27. The lines following are straightforward, but take care to consider any available refundable credits on Form 4590, Part 2. Further General Guidance For purposes of MBT, person means an individual, firm, bank, financial institution, insurance company, limited partnership, limited liability partnership, copartnership, partnership, joint venture, association, corporation, S corporation, LLC, receiver, estate, trust, or any other group or combination of groups acting as a unit. A taxpayer includes a single person or a UBG liable for tax, interest, or penalty. A UBG must file a combined MBT return (addressed in the “UBGs and Combined Filing” section of this General Information). Limited Liability Company. An LLC is classified for MBT purposes according to its federal tax classification. The following terms, whenever used in MBT forms, instructions, and statute, include LLCs as indicated: S Corporation includes an LLC federally taxed as an S Corporation, and a member of this LLC is a shareholder. C Corporation includes an LLC federally taxed as a C Corporation, and a member of this LLC is a shareholder. A member or other person performing duties similar to those of an officer in a true corporation is an officer in this LLC. NOTE: In this booklet, the term “corporation,” used without a C or S, generally refers to both types. A person that is a disregarded entity for federal income tax purposes under the internal revenue code must file as a disregarded entity for MBT purposes. This means that a disregarded entity for federal tax purposes, including a single member LLC or Q-Sub, must file as if it were a sole proprietorship if owned by an individual, or a branch or division if owned by another business entity. Fiduciaries filing for Trusts engaged in business activity must file an MBT return and report the total business activity. UBGs and Combined Filing NOTE: UBGs are addressed below, in general. In the instructions for each form, “Special Instructions for Unitary Business Groups” are located directly before “Line-by-Line Instructions.” The areas in the “Line-by-Line Instructions” that apply only to UBGs are labeled “UBGs.” Additional direction is found in the “Supplemental Instructions for Standard Members in UBGs.” Determining the Existence and Membership of a UBG Unitary Business Group means a group of United States persons, other than a foreign operating entity, that satisfies the control test and relationship test. United States person is defined in Internal Revenue Code (IRC) § 7701(a)(30). A foreign operating entity is defined by statute in Michigan Compiled Laws (MCL) 208.1109(5). Control Test. The control test is satisfied when one person owns or controls, directly or indirectly, more than 50 percent of the ownership interest with voting or comparable rights of the other person or persons. A person owns or controls more than 50 percent of the ownership interest with voting rights or ownership interest that confer comparable rights to voting rights of another person if that person owns or controls: More than 50 percent of the total combined voting power of all ownership interests with voting (or comparable) rights, or More than 50 percent of the total value of all ownership interests with voting (or comparable) rights. For more information on the control and relationship tests for UBGs, see Revenue Administrative Bulletin (RAB) 2010-1, MBT—Unitary Business Group Control Test, and RAB 20102, MBT—Unitary Business Group Relationship Tests, on Treasury’s Web site at www.michigan.gov/treasury. (Click on “Reports and Legal Resources.”) Filing the Correct Form A different primary return and instruction booklet are required for standard taxpayers (Form 4567) and insurance companies (Form 4588). Filing if Tax Year Is Less Than 12 Months Generally, annual returns must be filed for the same period as federal income tax returns. Tax year means the calendar year, or the fiscal year ending during the calendar year, upon the basis of which the tax base of a taxpayer is computed. If a return is made for a fractional part of a year, tax year means the period for which the return is made. A taxpayer that has a 52- or 53-week tax year beginning not more than seven days before December 31 of any year is considered to have a tax year beginning after December of that tax year. (NOTE: While the examples below are for a prior tax year, the concepts apply to the current tax year.) Relationship Tests. The definition of a UBG requires, in addition to satisfying the control test, that the group of persons have business activities or operations that either: Example 1: A taxpayer with a federal tax year beginning on Monday, December 29, 2008, will be treated as follows: 1) Result in a flow of value between or among persons in the group, or • 2008 tax year end of December 31, 2008. • Due date of April 30, 2009. • 2009 tax year beginning January 1, 2009. 2) Are integrated with, dependent upon, or contribute to each other. A taxpayer need only meet one of the two alternative tests to satisfy the relationship test. 1) Flow of value is established when members of the group demonstrate one or more of functional integration, centralized management, and economies of scale. Examples of functional integration include common programs or systems and shared information or property. Examples of centralized management include common management or directors, shared staff functions, and business decisions made for the UBG rather than separately by each member. Examples of economies of scale include centralized business functions and pooled benefits or insurance. Groups that commonly exhibit a flow of value include vertically or horizontally integrated businesses, conglomerates, parent companies with their wholly owned subsidiaries, and entities in the same general line of business. Flow of value must be more than the mere flow of funds arising out of passive investment. 2) The alternate “contribution/dependency” relationship test asks whether business activities are integrated with, dependent upon, or contributed to each other. Businesses are integrated with, are dependent upon, or contribute to each other under many of the same circumstances that establish flow of value. However, this alternate relationship test is also commonly satisfied when one entity finances the operations of another or when there exist intercompany transactions, including financing. Example 2: A taxpayer with a federal tax year ending on Sunday, January 3, 2010, will be treated as follows: • 2009 tax year end of December 31, 2009. • Due date of April 30, 2010. • 2010 tax year beginning on January 1, 2010. Example 3: A 52- or 53-week year closing near the end of January is common in the retail industry. Such a taxpayer will be treated as follows: • 2008-09 fiscal year end will be January 31, 2009. • Due date will be May 31, 2009. • 2009-10 fiscal year will begin on February 1, 2009. Annualizing If the filing period is less than 12 months, annualize the prior year’s tax liability to determine whether estimates may be based on that liability. If the prior year’s annualized liability is $20,000 or less, estimates may be based on the annualized amount if paid in four equal, timely, installments. If annualization is required, multiply the prior year’s tax liability by 12 and divide the result by the number of months the business operated. Generally, a business is considered in business for a month if the business operated for more than half the days of that month. A business whose entire tax year is 15 days or less, however, is considered in business for one month. EXAMPLE: A fiscal year taxpayer with a tax year ending in 5 June files a six-month return ending June 2010 reporting a tax liability of $9,000. Estimates for the tax year ending June 2011 may be based on the annualized liability of $18,000. Estimates must be paid in four equal, timely installments of $4,500. Fiduciaries: A business registered as a Fiduciary that is in business less than 12 months is not required to annualize. Due Dates of Annual Returns Annual returns are due on or before the last day of the fourth month after the end of the tax year. For example, a return for calendar year 2020 is due April 30, 2021. A return for a fiscal year ending June 30, 2021, is due October 31, 2021. Additional Filing Time If additional time is needed to file an annual tax return, request a Michigan extension by filing an Application for Extension of Time to File Michigan Tax Returns (Form 4). Check the box for MBT to extend the time to file an MBT return. UBG NOTE: Extension requests must be filed under the name and account number of a UBG’s designated member to be a valid request for extension. Filing a federal extension request with the IRS does not automatically grant an MBT extension. The IRS does not notify state governments of extensions. A request for a Michigan extension must be received and approved to avoid penalty on the tax due. Extension applications must be postmarked on or before the due date of an annual return. Although Treasury may grant extensions for filing MBT returns, it will not extend the time to pay. Extension applications received without proper payment will not be processed. Penalty and interest will accrue on the unpaid tax from the original due date of the return. Properly filed and paid estimates along with the amount included on the extension application will be accepted as payment on a tentative return, and an extension may be granted. It is important that the application is completed correctly. Once a properly prepared and timely filed application along with appropriate estimated tax payments is received, Treasury will grant an extension of eight months to file the tax return. Any estimated tax that may be due with the request should be paid in the same manner as estimated payments were paid during the year. A written response will be sent to the legal address on file when a valid extension application is received. If an MBT extension is filed on time but the total payments received by the original due date are less than 90 percent of the tax liability, a 10 percent negligence penalty may apply. IMPORTANT: If no tax is owed, there is no need to file an extension with Michigan by the due date of the return to avoid penalty. However, without an approved extension, it is necessary to file an annual return as soon as the information is available to do so. An extension of time to file will also extend the statute of limitations. 6 Amending a Return A taxpayer may not amend to revoke the election to remain taxable under the MBT. Once the taxpayer makes a valid election to claim a certificated credit, the taxpayer must remain in the MBT until the certificated credit and any carryforward of that credit are exhausted. Most certificated credits must be claimed for the taxpayer’s first tax year ending after December 31, 2011. To amend a current or prior year annual return, complete the Form 4590 that is applicable for that year and check the box in the upper-right corner of the return, and attach a separate sheet explaining the reason for the changes. Include all schedules filed with the original return, even if not amending that schedule. Enter the figures on the amended return as they should be. Do not include a copy of the original return with your amended return. Current and past year forms are available on Treasury’s Web site at www.michigan.gov/treasuryforms. To amend a return to claim a refund, file within four years of the due date of the original return (including valid extensions). Most certificated credits must be claimed for the taxpayer’s first tax year ending after December 31, 2011. Interest will be paid beginning 45 days after the claim is filed or the due date, whichever is later. If amending a return to report a deficiency, penalty and interest may apply from the due date of the original return. If any changes are made to a federal income tax return that affect an MBT tax base, filing an amended return is required. To avoid penalty, file the amended return within 120 days after the final determination by the IRS. Computing Penalty and Interest Annual and estimated returns filed late or without sufficient payment of the tax due are subject to a penalty of 5 percent of the tax due, for the first two months. Penalty increases by an additional 5 percent per month, or fraction thereof, after the second month, to a maximum of 25 percent. Compute penalty and interest for underpaid estimates using the MBT Penalty and Interest Computation for Underpaid Estimated Tax (Form 4582). If a taxpayer prefers not to file this form, Treasury will compute the penalty and interest and send a bill. The following chart shows the interest rate that applies to each filing period. A new interest rate is set at 1 percent above the adjusted prime rate for each six-month period. Beginning Date Rate Daily Rate January 1, 2020 6.4% 0.0001749 July 1, 2020 5.63% 0.0001538 January 1, 2021 4.25% 0.0001164 For a complete list of interest rates, see the Revenue Administrative Bulletins on Treasury’s Web site at www.michigan.gov/treasury/. Signing the Return Mailing Addresses All returns must be signed and dated by the taxpayer or the taxpayer’s authorized agent. This may be the owner, partner, corporate officer, or association member. The corporate officer may be the president, vice president, treasurer, assistant treasurer, chief accounting officer, or any other corporate officer (such as tax officer) authorized to sign the corporation’s tax return. Mail the annual return and all necessary schedules to: If someone other than the above prepared the return, the preparer must give his or her business address and telephone number. Print the name of the authorized signer and preparer in the appropriate area on the return. Assemble the returns and attachments (in sequence order) and staple in the upper-left corner. (Do not staple a check to the return.) In an e-filed return, the preparation software will assemble the forms and PDF attachments in the proper order automatically. IMPORTANT REMINDER: Failure to include all the required forms and attachments will delay processing and may result in reduced or denied refund or credit forward or a bill for tax due. SIGNING AN E-FILED RETURN: As with any tax return submitted to Treasury on paper, an electronic tax return must be signed by an authorized tax return signer, the Electronic Return Originator (ERO), if applicable, and the paid tax preparer, if applicable. NOTE: If the return meets one of the exceptions to the e-file mandate and is being filed on paper, it must be manually signed and dated by the taxpayer or the taxpayer’s authorized agent. The MBT Fed/State e-file signature process is as follows: Fed/State Returns: Michigan will accept the federal signature method. Michigan does not require any additional signature documentation. With payment: Michigan Department of Treasury PO Box 30113 Lansing MI 48909 Without payment: Michigan Department of Treasury PO Box 30783 Lansing MI 48909 Mail an extension application (Form 4) to: Michigan Department of Treasury PO Box 30774 Lansing MI 48909-8274 Mail MBT/CIT quarterly estimate payments (Form 4913) to: Michigan Department of Treasury PO Box 30774 Lansing MI 48909-8274 Courier delivery service mail should be sent to: Michigan Department of Treasury 7285 Parsons Dr. Dimondale, MI 48821 Make all checks payable to “State of Michigan.” Print taxpayer’s FEIN or TR Number, the tax year, and “MBT” on the front of the check. Do not staple the check to the return. Correspondence An address change or business discontinuance can be reported online by using Michigan Treasury Online (MTO), Business Tax Services. See www.michigan.gov/mtobusiness for information. In the alternative, Notice of Change or Discontinuance (Form 163), can be found online at www.michigan.gov/treasuryforms. State Stand Alone Returns: State Stand Alone returns must be signed using Form MI-8879 (also called the Michigan e-file Authorization for Business Taxes MI-8879, Form 4763). Returns are signed by entering the taxpayer PIN in the software after reading the perjury statement displayed in the software. The taxpayer PIN will be selected by the taxpayer, or the taxpayer may authorize his or her tax preparer to select the taxpayer PIN. Mail correspondence to: Business Tax Division, MBT Unit Michigan Department of Treasury PO Box 30059 Lansing MI 48909 Form MI-8879 will be printed and contain the taxpayer PIN. The tax preparer will retain Form MI-8879 in his or her records as part of the taxpayer’s printed return. MBT State Stand Alone e-filings submitted without a taxpayer PIN will be rejected by Treasury. Do not mail Form MI-8879 to Treasury and do not include Form MI-8879 as an attachment with the e-file return. Current and past year forms are available on Treasury’s Web site at www.michigan.gov/treasuryforms. To Request Forms Internet TTY Assistance is available using TTY through the Michigan Relay Service by calling 711. 7 8 Michigan Department of Treasury 4590 (Rev. 04-20), Page 1 of 2 2020 MICHIGAN Business Tax Annual Return for Financial Institutions Issued under authority of Public Act 36 of 2007. Check if this is an amended return. See instructions. (MM-DD-YYYY) 1. Return is for calendar year 2020 or for tax year beginning: and ending: (MM-DD-YYYY) 2. Taxpayer Name (print or type) 7. Federal Employer Identification Number (FEIN) or TR Number Doing Business As (DBA) 8. Organization Type Street Address City State ZIP/Postal Code 4. Business Start Date in Michigan 5. NAICS (North American Industry Classification System) Code 6. If Discontinued, Effective Date 10. Apportionment Calculation: C Corporation / LLC C Corporation Country Code 3. Principal Business Activity S Corporation / LLC S Corporation Fiduciary Check if new address. (See instructions) 8a. Check if taxpayer (or any UBG member) has authority to exercise trust powers only. 9. Check if Filing Michigan Unitary Business Group Return. (Include Form 4752.) 00 00 % a. Michigan Gross Business (if no Michigan gross business, enter zero)...10a. b. Total Gross Business....................................................................10b. c. Apportionment Percentage. Divide line 10a by line 10b..............10c. PART 1: FRANCHISE TAX Lines 11-14: If less than zero, enter zero. 11. Equity Capital..................... 11. 12. Goodwill.............................. 12. 13. Average daily book value of Michigan obligations....... 13. 14. Average daily book value of U.S. obligations.............. 14. 15. Subtotal. Add lines 12 through 14.......................... 15. 16. Net Capital. Subtract line 15 from line 11.................... 16. 17. a. Authorized insurance co. subsidiary: Enter actual capital fund amount........ 17a. A 2016 B 2017 C 2018 D 2019 E 2020 b. Minimum regulatory amount required............. 17b. c. Multiply line 17b by 125% (1.25).................... 17c. d. Subtract line 17c from 17a. If less than zero, enter zero....................... 17d. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. + Add lines 16 and 17d.......... 18. Add line 18, columns A through E. If less than zero, enter zero, skip lines 20-25, and enter zero on line 26......... Net Capital for Current Taxable Year. Divide line 19 by number of tax years reported above................................. Apportioned Tax Base. Multiply line 20 by percentage on line 10c......................................................................... Multiply line 21 by 0.235% (0.00235)...................................................................................................................... There is no amount to be entered on the line. Skip to line 26................................................................................. There is no amount to be entered on the line. Skip to line 26................................................................................. There is no amount to be entered on the line. Skip to line 26................................................................................. Total Liability Before All Credits. Enter amount from line 22.................................................................................... Nonrefundable credits from Form 4568, line 40...................................................................................................... Total Tax After Nonrefundable Credits. Subtract line 27 from line 26. If less than zero, enter zero.................... 0000 2020 87 01 27 6 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 00 00 00 00 X X X X X X X X 00 X X X X X X X X 00 X X X X X X X X 00 00 00 00 Continue and sign on Page 2. 2020 Form 4590, Page 2 of 2 FEIN or TR Number 29. Recapture of Certain Business Tax Credits from Form 4587, line 13.................................................................... 30. Total MBT Tax Liability. Add lines 28 and 29..................................................................................................... 31. Corporate Income Tax adjustment from Form 4975, line 17................................................................................. 32. Total Tax Liability. Add lines 30 and 31............................................................................................................... 29. 30. 31. 32. 00 00 00 00 38. 00 PART 2: PAYMENTS, REFUNDABLE CREDITS AND TAX DUE 33. 34. 35. 36. 37. 38. Overpayment credited from prior MBT return................................................... 33. 00 Estimated tax payments................................................................................... 34. 00 There is no amount to be entered on this line. Skip to line 36......................... 35. X X X X X X X X 00 Tax paid with request for extension.................................................................. 36. 00 Refundable credits from Form 4574, line 23.................................................... 37. 00 Total Payments. Add lines 33 through 37. (If not amending, then skip to line 40)................................................ 00 AMENDED a. Payment made with original and/or prior amended returns... 39a. 39. RETURN b. Overpayment from original and/or prior amended returns.... 39b. 00 ONLY c. Add lines 38 and 39a and subtract line 39b from the sum.... .................................................... 39c. 40. TAX DUE. Subtract line 38 (or line 39c, if amending) from line 32. If less than zero, leave blank........................ 40. 41. Underpaid estimate penalty and interest from Form 4582, line 38......................................................................... 41. 42. Annual return penalty (a) % = (b) 00 plus interest of (c) 00 . Total...... 42d. 43. PAYMENT DUE. If line 40 is blank, go to line 44. Otherwise, add lines 40, 41 and 42d...................................... 43. 00 00 00 00 00 PART 3: REFUND OR CREDIT FORWARD 44. Overpayment. Subtract lines 32, 41 and 42d from line 38 (or line 39c, if amending). If less than zero, leave blank (see instructions).......................................................................................................................................... 45. CREDIT FORWARD. Amount on line 44 to be credited forward and used as an estimate for next MBT tax year..... 46. REFUND. Amount on line 44 to be refunded......................................................................................................... Taxpayer Certification. I declare under penalty of perjury that the information in this return and attachments is true and complete to the best of my knowledge. By checking this box, I authorize Treasury to discuss my return with my preparer. Authorized Signature for Tax Matters Authorized Signer’s Name (print or type) Title 44. 45. 46. 00 00 00 Preparer Certification. I declare under penalty of perjury that this return is based on all information of which I have any knowledge. Preparer’s PTIN, FEIN or SSN Preparer’s Business Name (print or type) Date Preparer’s Business Address and Telephone Number (print or type) Telephone Number Return is due April 30 or on or before the last day of the 4th month after the close of the tax year. WITHOUT PAYMENT - Mail return to: Michigan Department of Treasury PO Box 30783 Lansing MI 48909 + 0000 2020 87 02 27 4 WITH PAYMENT — Pay amount on line 43 and mail check and return to: Michigan Department of Treasury PO Box 30113 Lansing MI 48909 Make check payable to “State of Michigan.” Print taxpayer’s FEIN or TR Number, the tax year, and “MBT” on the front of the check. Do not staple the check to the return. Instructions for Form 4590 Michigan Business Tax (MBT) Annual Return for Financial Institutions Purpose To calculate a tax liability and claim credits for a financial institution for MBT. NOTE: Beginning January 1, 2012, only those taxpayers with a certificated credit, which is awarded but not yet fully claimed or utilized, may elect to be MBT taxpayers. If a taxpayer files an MBT return and claims a certificated credit, the taxpayer makes the election to file and pay under the MBT until the certificated credit and any carryforward of that credit are exhausted. General Instructions MBT Liability: Beginning January 1, 2012, a taxpayer calculates MBT liability as the greater of MBT liability after all credits, deductions, and exemptions or hypothetical Corporate Income Tax (CIT) liability minus deductions and credits available under that act and minus certificated credits allowed under the MBT. This calculation of liability requires a taxpayer to calculate net equity tax base and apply available MBT credits, including certificated credits, deductions, and exemptions available under the MBT. Then, the taxpayer will calculate the CIT comparison on Schedule of Corporate Income Tax Liability for a Financial Filer (Form 4975). A taxpayer is permitted to reduce hypothetical CIT liability by all deductions and credits which would be allowed under that tax as well as the amount of certificated credit allowed under the MBT. The amount of certificated credit allowed under the MBT is the amount of nonrefundable credit needed to offset MBT liability or the entire amount of a refundable credit. If the taxpayer’s hypothetical CIT liability would be higher than its MBT liability, the taxpayer will add the difference to MBT liability on line 31 of this form (4590). This is the CIT adjustment. If the result of both steps of the calculation is a negative number, the taxpayer will receive a refund of the lower negative; but a nonrefundable credit cannot be used to reduce liability below zero. Remaining nonrefundable certificated credit may be carried forward to succeeding tax years. Special Instructions for Unitary Business Groups A Unitary Business Group (UBG) is a group of United States persons, other than a foreign operating entity, that satisfies the following criteria: • One of the persons owns or controls, directly or indirectly, more than 50 percent of the ownership interest with voting rights (or rights comparable to voting rights) of the other United States persons; AND • The UBG has operations which result in a flow of value between persons in the UBG or has operations that are integrated with, are dependent upon, or contribute to each other. Flow of value is determined by reviewing the totality of facts and circumstances of business activities and operations. All financial institution members of a UBG must file a combined Form 4590 for the group with a Designated Member (DM) who must be the controlling member of the group, unless the controlling member does not have nexus with Michigan. If that is the case, the controlling member may appoint a group member with nexus to serve as the DM. NOTE: The MBT Unitary Business Group Combined Filing Schedule for Financial Institutions (Form 4752) must be completed before completing Form 4590. For more information on UBGs, see the instructions for Form 4752, available online at the Department of Treasury (Treasury) Web site at www.michigan.gov/taxes. For more information on the control and relationship tests for UBGs, see Revenue Administrative Bulletin (RAB) 2010-1 Michigan Business Tax-Unitary Business Group Control Test and RAB 2010-2 Michigan Business Tax-Unitary Business Group Relationship Tests on the Treasury Web site. NOTE: Under the foregoing definition, a UBG may include financial institutions, insurance companies, and standard taxpayers. A group containing a mixture of these three taxpayer types may be required to file two or more returns to properly report the activities of the different taxpayer types within the group. Under Michigan Compiled Law (MCL) 208.1261(f), financial institution means any of the following: i. A bank holding company, a national bank, a state chartered bank, an office of thrift supervision chartered bank or thrift institution, or a savings and loan holding company other than a diversified savings and loan holding company as defined in 12 United Stated Code (USC) 1467a(a)(F) or a federally chartered Farm Credit System institution. ii. Any entity, other than an entity subject to the tax imposed under Chapter 2A (insurance company), who is directly or indirectly owned by an entity described in (i) and is a member of the UBG. iii. A UBG of entities described in (i) or (ii), or both. NOTE: Because the definition of financial institution for MBT purposes includes any entity (except an insurance company) that is owned by a bank or other entity (as described above) and is a member of a UBG with its parent, this may cause an entity that is not commonly thought of as a financial institution to be defined as one for return filing purposes. A UBG of financial institutions must file a combined return on this Form 4590 that includes each member of the group that is a financial institution. Taxpayer Certification A return filed by a UBG must be signed by an individual authorized to sign on behalf of the DM. Provide the telephone number of that individual at the DM’s office. Line-by-Line Instructions Lines not listed are explained on the form. Dates must be entered in MM-DD-YYYY format. For periods less than 12 months, see the “General Information for Financial Institutions” in the MBT Forms and Instructions for Financial Institutions (Form 4599). 11 UBGs: Complete Form 4752 before beginning Form 4590. Amended Returns: To amend a current or prior year annual return, complete the Form 4590 that is applicable for that year, check the box in the upper-right corner of the return, and attach a separate sheet explaining the reason for the changes. Include an amended federal return or a signed and dated Internal Revenue Service (IRS) audit document. Include all schedules filed with the original return, even if not amending that schedule. Enter the figures on the amended return as they should be. Do not include a copy of the originally filed return with the amended return. A taxpayer may not amend to revoke the election to remain taxable under the MBT. Once the taxpayer makes a valid election to claim a certificated credit, the taxpayer must remain in the MBT until the credit and any carryforward of that credit are exhausted. Line 1: Unless a calendar year, enter the beginning and ending dates (MM-DD-YYYY) that correspond to the taxable period as reported to the IRS. Tax year means the calendar year, or the fiscal year ending during the calendar year, upon the basis of which the tax base of a taxpayer is computed. If a return is made for a fractional part of a year, tax year means the period for which the return covers. Generally, a taxpayer’s tax year is for the same period as is covered by its federal income tax return. Fiscal Year Filers: See “Supplemental Instructions for Fiscal MBT Filers — Financial Institutions” in Form 4599. Line 2: Enter the complete address and, if other than the United States, enter the two-digit abbreviation for the country code. See the list of country codes in Form 4599. Line 6: Enter the date, if applicable, on which the taxpayer went out of business. To file a discontinuance for Michigan taxes, use Michigan Treasury Online (MTO). Visit www.michigan. gov/mtobusiness for more information.subject to another tax administered by Treasury, do not use this line. Also, do not use this line if the taxpayer is a UBG and one member has stopped doing business. Line 7: Use the taxpayer’s Federal Employer Identification Number (FEIN) or the Michigan Treasury (TR) assigned number. Be sure to use the same account number on all forms. If the taxpayer does not have an FEIN or TR number, the taxpayer MUST register before filing this form. Taxpayers are encouraged to register online at www.michigan.gov/businesstaxes. The Web site provides information on obtaining an FEIN, which is required to submit taxes through e-file. Taxpayers usually can obtain an FEIN from the IRS within 48 hours. Taxpayers registering with the State online usually receive an account number within seven days. Returns received without a registered account number will not be processed until such time as a number is provided. UBGs: Enter the FEIN or TR Number for the DM of the financial group. Line 8: Check the box that describes the DM’s organization type. A Trust or a Limited Liability Company (LLC) should check the appropriate box based on its federal return. NOTE: A person that is a disregarded entity for federal tax purposes, including a single member LLC or Q-Sub, must file as if it were a sole proprietorship if owned by an individual, or a branch or division if owned by another business entity. Any correspondence regarding the return filed and/or refund will be sent to the address used here. Check the new address box if the address used on this line has changed from the last filing. The taxpayer’s primary address in the Department of Treasury (Treasury) files, identified as the legal address and used for all purposes other than refund and correspondence on a specific MBT return, will not change until the customer specifically makes the change on their Michigan Treasury Online (MTO) account. Visit michigan.gov/mtobusiness for more information. Line 8a: If the taxpayer meets the definition of financial institution and is filing this form, but is authorized to exercise only trust powers, check this box. See line 23 for additional instructions. Exception: If mail sent to the legal address has been returned to Treasury by the United States Postal Service, Treasury will update the taxpayers legal address with the address used on this line in the most recent MBT return. Lines 10a through 10c: A taxpayer may apportion on lines 10a through 10c only if its business activities are subject to tax both within and outside of Michigan. A financial institution is subject to tax in another state, as that term is used here, only if: UBGs: In the Name field, enter the name of the DM for the financial institutions. Line 3: Enter a brief description of the principal types of financial services in which the taxpayer is engaged. Line 4: Enter the start date of first business activity in Michigan. Line 5: Enter the entity’s six-digit North American Industry Classification System (NAICS) code. For a complete list of six-digit NAICS codes, see the U.S. Census Bureau Web site at www.census.gov/eos/www/naics/, or enter the same NAICS code used when filing the entity’s U.S. Form 1120, Schedule K, U.S. Form 1120S, or U.S. Form 1065. 12 UBG: If any member of a UBG is a financial institution that is authorized to exercise only trust powers, the UBG should check this box. Line 9: Check this box if filing a Michigan UBG return and include Form 4752. For MBT, taxpayer means a person or a UBG liable for tax, interest, or penalty. • It is subject to a Business Privilege Tax, a Net Income Tax, a Franchise Tax measured by net income, a Franchise Tax for the privilege of doing business, or a corporate stock tax or a tax of the type imposed under the MBT Act in that other state; OR • That other state has jurisdiction to subject the financial institution to one or more of the taxes listed above regardless of whether that state does or does not subject the financial institution to such a tax. Under MCL 208.1261(g), gross business means the sum of the are in Michigan if the financial institution’s customer is in Michigan. If the location of the financial institution’s customer cannot be determined, both of the following apply: following less transactions between those entities included in a UBG: i. Fees, commissions, or other compensation for financial services. ii. Net gains, not less than zero, from the sale of loans and other intangibles. iii. Net gains, not less than zero, from trading in stocks, bonds, or other securities. iv. Interest charged to customers for carrying debit balances of margin accounts. v. Interest and dividends received. vi. Any other gross proceeds resulting from the operation as a financial institution. For a UBG that includes financial institutions, gross business includes gross business in Michigan of every financial institution included in that UBG without regard to whether the financial institution has nexus in Michigan. Gross business between financial institutions included in a UBG must be eliminated in calculating the gross business factor. Gross business is determined to be in Michigan under extensive guidelines found at MCL 208.1269. These guidelines are summarized as follows: • Receipts from credit card receivables including interest and fees or penalties in the nature of interest from credit card receivables and receipts from fees charged to credit card holders such as annual fees are in Michigan if the billing address of the credit card holder is located in Michigan. • Credit card issuer’s reimbursement fees are in Michigan if the billing address of the credit card holder is located in Michigan. • Receipts from merchant discounts are in Michigan if the commercial domicile of the merchant is in Michigan. • Loan servicing fees are in Michigan under any of the following circumstances: ○ For a loan secured by real property, if the real property for which the loan is secured is in Michigan. ○ For a loan secured by real property, if the real property for which the loan is secured is located both in Michigan and in one or more other states and more than 50 percent of the fair market value of the real property is located in Michigan. ○ For a loan secured by real property, if more than 50 percent of the fair market value of the real property for which the loan is secured is not located within any one state but the borrower is located in Michigan. ○ For a loan not secured by real property, the borrower is located in Michigan. • Receipts from services are in Michigan if the recipient of the services receives all of the benefit of the services in Michigan. If the recipient of the services receives some of the benefit of the services in Michigan, the receipts are included in the numerator of the apportionment factor in proportion to the extent that the recipient receives benefit of the services in Michigan. • Receipts from investment assets and activities and trading assets and activities, including interest and dividends, • • • • • • • ○ Interest, dividends, and other income from investment assets and activities and from trading assets and activities, including, but not limited to, investment securities; trading account assets; federal funds; securities purchased and sold under agreements to resell or repurchase; options; futures contracts; forward contracts; notional principal contracts such as swaps; equities; and foreign currency transactions are in Michigan if the average value of the assets is assigned to a regular place of business of the taxpayer in Michigan. Interest from federal funds sold and purchased and from securities purchased under resale agreements and securities sold under repurchase agreements are in Michigan if the average value of the assets is assigned to a regular place of business of the taxpayer in Michigan. The amount of receipts and other income from investment assets and activities is in Michigan if assets are assigned to a regular place of business of the taxpayer in Michigan. ○ The amount of receipts from trading assets and activities, including, but not limited to, assets and activities in the matched book, in the arbitrage book, and foreign currency transactions, but excluding amounts otherwise sourced in this section, are in Michigan if the assets are assigned to a regular place of business of the taxpayer in Michigan. Interest charged to customers for carrying debit balances on margin accounts without deduction of any costs incurred in carrying the accounts is in Michigan if the customer is located in Michigan. Interest from loans secured by real property is in Michigan if the property is located in Michigan, if the property is located both within Michigan and one or more other states and more than 50 percent of the fair market value of the real property is located in Michigan, and if more than 50 percent of the fair market value of the real property is not located within any one state but the borrower is located in Michigan. Interest from loans not secured by real property is in Michigan if the borrower is located in Michigan. Net gains from the sale of loans secured by real property or mortgage service rights relating to real property are in Michigan if the property is in Michigan, if the property is located both within Michigan and one or more other states and more than 50 percent of the fair market value of the real property is located in Michigan, or if more than 50 percent of the fair market value of the real property is not located in any one state, but the borrower is located in Michigan. Net gains from the sale of loans not secured by real property or any other intangible assets are in Michigan if the depositor or borrower is located in Michigan. Receipts from the lease of real property are in Michigan if the property is located in Michigan. Receipts from the lease of tangible personal property are in Michigan if the property is located in Michigan when it is first placed in service by the lessee. 13 • Receipts from the lease of transportation tangible personal property are in Michigan if the property is used in Michigan or if the extent of use of the property in Michigan cannot be determined but the property has its principal base of operations in Michigan. UBGs: Carry amount from Form 4752, line 2C, to line 10a, and the amount from Form 4752, line 3C, to line 10b. PART 1: FRANCHISE TAX The following tax base calculation involves a five-year average of net capital. Enter data from the current tax year and four most recent MBT tax years to complete the five-year table. For purposes of this table, treat a partial year as a full year. If the current and four preceding tax periods include any short periods, the years printed in column headings for this part will not apply accurately. For example, a financial institution has a fiscal year end of June 30 and its current tax year is a short year ending September 30, 2020. That financial institution reports the periods ending September 30, 2020, June 30, 2020, June 30, 2019, June 30, 2018, and June 30, 2017. Short periods: For a filing period less than one full year, in lines 11 through 14, 17a, and 17b for each of the five columns enter the actual number multiplie
More about the Michigan Form 4599 Corporate Income Tax
We last updated the Instruction Booklet for Financial Institutions in April 2021, and the latest form we have available is for tax year 2020. This means that we don't yet have the updated form for the current tax year. Please check this page regularly, as we will post the updated form as soon as it is released by the Michigan Department of Treasury. You can print other Michigan tax forms here.
Other Michigan Corporate Income Tax Forms:
|Form Code||Form Name|
|Form MI W-4P||Withholding Certificate for Michigan Pension or Annuity Payments|
|Form 4763||E-file Authorization for Business Taxes MI-8879 (OBSOLETE)|
|Form 4567||Business Tax Annual Return|
|Form 4891||CIT Annual Return|
|Form 4918||Annual Flow-Through Withholding Reconciliation Return (OBSOLETE)|
Michigan usually releases forms for the current tax year between January and April. We last updated Michigan Form 4599 from the Department of Treasury in April 2021.
About the Corporate Income Tax
The IRS and most states require corporations to file an income tax return, with the exact filing requirements depending on the type of company.
Sole proprietorships or disregarded entities like LLCs are filed on Schedule C (or the state equivalent) of the owner's personal income tax return, flow-through entities like S Corporations or Partnerships are generally required to file an informational return equivilent to the IRS Form 1120S or Form 1065, and full corporations must file the equivalent of federal Form 1120 (and, unlike flow-through corporations, are often subject to a corporate tax liability).
Additional forms are available for a wide variety of specific entities and transactions including fiduciaries, nonprofits, and companies involved in other specific types of business.
Historical Past-Year Versions of Michigan Form 4599
We have a total of ten past-year versions of Form 4599 in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:
4599, 2019 Michigan Business Tax Forms and Instructions for Financial Institutions
4599, Michigan Business Tax Forms and Instructions for Financial Institutions
4599, 2017 Michigan Business Tax Forms and Instructions for Financial Institutions
4599, 2016 Michigan Business Tax Forms and Instructions for Financial Institutions
Form 4599, 2011 Forms and Instructions for Financial Institutions
While we do our best to keep our list of Michigan Income Tax Forms up to date and complete, we cannot be held liable for errors or omissions. Is the form on this page out-of-date or not working? Please let us know and we will fix it ASAP.