Michigan Schedule of Shareholders and Officers*
Extracted from PDF file 2016-michigan-form-4894.pdf, last modified December 2016
Schedule of Shareholders and Officers*Attachment 3 Michigan Department of Treasury 4894 (Rev. 03-16), Page 1 2016 MICHIGAN Corporate Income Tax Schedule of Shareholders and Officers For all Corporations claiming the Small Business Alternative Credit Issued under authority of Public Act 38 of 2011. Taxpayer Name (If Unitary Business Group, Name of Designated Member) Federal Employer Identification Number (FEIN) Unitary Business Groups Only: Name of Unitary Business Group Member Reporting on This Form Federal Employer Identification Number (FEIN) PART 1: Qualifying Data for the Small Business Alternative Credit. Complete Part 2 and Part 3 before completing Part 1. See instructions for definition of active shareholder. 1. Compensation and director fees of active shareholders. Add amounts in Part 2, column L, for each active shareholder. Enter here and on Form 4893, line 7.................................................................................................. 1. 00 2. Compensation and director fees of officers. Add amounts in Part 2, column L, for each officer who is not an active shareholder. Enter here and on Form 4893, line 8....................................................................................... 2. 00 PART 2: SHAREHOLDERS AND OFFICERS. 3. A Member Number See instructions. B C D E F G Name of shareholder (including corporation, trust, or partnership), officer, or family member receiving compensation from the business (Last, First, Middle) FEIN or Social Security Number Check (X) if an officer % Stock directly owned % Stock with attribution % Stock from Col. F less any attribution between two active shareholders Percent of stock (not listed above) owned by shareholders who own less than 10% and receive no compensation: Total: + 0000 2016 18 01 27 0 100 % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % Continue on Page 2 4894, Page 2 FEIN UBG Member FEIN PART 2: SHAREHOLDERS AND OFFICERS — Continued 3. H Member Number I Dividends (used to determine active shareholders) J K Salaries, wages and director fees Employee insurance plans, pensions, etc. L Total compensation and director fees for officers and/or shareholders. Add columns J and K. M N Share of business income/loss Total shareholder/officer income. Add columns L and M. If more space is needed to complete Part 2, include additional copies of Form 4894. Repeat the taxpayer name and FEIN at the top of every copy of page 1, and carry over the FEIN to the top of page 2. (See instructions.) IMPORTANT NOTE ON COMPLETING THIS FORM: If filing this form for a short-period return, or if reporting a part-year shareholder or officer: • Compensation, director fees, and dividends of each individual must be entered on this form as the actual amount received during the period. • For purposes of determining the credit disqualifiers, compensation and director fees must be annualized. • For purposes of determining active shareholders, compensation, director fees, and dividends must be annualized. + 0000 2016 18 02 27 8 Continue on Page 3 4894, Page 3 FEIN UBG Member FEIN PART 3: LIST OF FAMILY MEMBERS AND THEIR CORRESPONDING RELATIONSHIPS Part 3 is used to report attributable family relationships between individual shareholders. An attributable family relationship is defined as either a spouse, parent, child, or grandchild. In Part 3, column O, list each individual shareholder from Part 2, using the same Member Number references from Part 2, column A. For each shareholder listed in column O: • If an attributable family relationship exists with another shareholder, report that other shareholder’s Member Number in the appropriate column, P through S. • If no attributable family relationship exists between the shareholder in column O and any other shareholder, enter “X” in column T. 4. O Member Number P Q R S Spouse Parent Child Grandchild T Check (X) if No Attributable Relationship If more space is needed to complete Part 3, include additional copies of Form 4894. Repeat the taxpayer name and FEIN at the top of every copy of page 1, and carry over the FEIN to the top of page 3. (See instructions.) + 0000 2016 18 03 27 6 Instructions for Form 4894 Corporate Income Tax (CIT) Schedule of Shareholders and Officers For all Corporations claiming the Small Business Alternative Credit Purpose To determine eligibility of corporations to qualify for the Small Business Alternative Credit (SBAC). This form must be included when filing CIT Small Business Alternative Credit (Form 4893). Corporation means a taxpayer that is required or has elected to file as a C Corporation under the Internal Revenue Code (IRC). Corporation includes a Limited Liability Company that has elected to be taxed federally as a C Corporation. Special Instructions for Unitary Business Groups (UBGs) The allocated income disqualifier is based on all items paid or allocable to a shareholder or officer by all members of the UBG. All items paid or allocable to a single individual must be combined when calculating this disqualifier. General Instructions If filing as a corporation (including Limited Liability Companies federally taxed as such) and claiming the SBAC, complete this form and include it as part of the annual return to report: • Shareholder and corporate officer qualifications for the SBAC; • Compensation and director fees of active shareholders and all officers for the computation of the SBAC. Officer means an officer of a corporation including all of the following: (i) The chairperson of the board. (ii) The president, vice president, secretary, or treasurer of the corporation or board. (iii) Persons performing similar duties and responsibilities to persons described in subparagraphs (i) and (ii), that include, at a minimum, major decision making. Shareholder means a person who owns outstanding stock in a corporation or is a member of a business entity that files as a corporation for federal income tax purposes. An individual is considered the owner of the stock, or the equity interest in a business entity that files as a corporation for federal income tax purposes, owned directly or indirectly, by or for family members as defined by IRC § 318(a)(1). A family member, as defined by IRC § 318(a)(1), includes spouses, parents, children and grandchildren. NOTE: Rules of attribution in IRC § 318(a)(1) do not differentiate between an adult and a minor child. Outstanding stock means all stock of record, regardless of class, value, or voting rights, but outstanding stock does not include treasury stock. All attributable family members of those directly owning stock, who received compensation during the tax year, must be listed in Parts 2 and 3. Tax Years Less Than 12 Months If the reported tax year is less than 12 months, shareholders’ and officers’ allocated income must be annualized to determine eligibility and reduction percentage. Where those same amounts are reported on SBAC forms, they are reported on forms as actual, not annualized, amounts. NOTE: If a shareholder owned stock for less than the entire tax year of the corporation, or an officer served as an officer less than the entire tax year: • For purposes of determining credit disqualifiers and credit reduction, compensation and director fees must be annualized. The determination of credit disqualifiers and credit reduction is performed off-form. • For purposes of determining active shareholders, compensation, director fees, and dividends must be annualized. The determination of active shareholders is performed offform. Annualizing Where annualization applies (see above NOTE), multiply each applicable amount by 12 and divide the result by the number of months in the tax year. Generally, a business counts a month if the business operated for more than half the days of the month. If the tax year is less than one month, consider the tax year to be one month for the purposes of the calculation. Line-by-Line Instructions Lines not listed are explained on the form. Taxpayer Name and Account Number: Enter name and account number as reported on page 1 of the CIT Annual Return (Form 4891). Also, the taxpayer Federal Employer Identification Number (FEIN) from the top of page 1 must be repeated in the proper location on pages 2 and 3. UBGs: Complete one form for each UBG member that is a corporation. Enter the Designated Member (DM) name in the Taxpayer Name field and the member to whom the schedule applies on the line below. On the copy filed to report the DM’s data (if applicable), enter the DM’s name and account number on each line. Also, the DM’s FEIN and the member’s FEIN from the top of page 1 must be repeated in the proper location on pages 2 and 3. PART 1: Qualifying Data for the Small Business Alternative Credit NOTE: Parts 2 and 3 must be completed before Part 1. NOTE: If more than one 4894 is included for a filer, sum the totals for lines 1 and 2 on the top form. Line 1: Add compensation and director fees in column L for 33 each active shareholder and enter the result on line 1 and on Form 4893, line 7. Report on line 1 and on Form 4893, line 7 actual, not annualized, amounts. shareholders’ family members, as defined by IRC § 318(a) (1), are considered shareholders and must be listed in Parts 2 and 3 if they receive compensation from the business. List all shareholders and officers who: An active shareholder: • Are employees of the corporation; • Are directors of the corporation; or • Own 10 percent or more of the stock of the corporation, including those by attribution. • Is a shareholder of the corporation, including through attribution, AND • Owns at least 5 percent of outstanding stock, including through attribution (column F = 5 percent or more), AND • Receives at least $10,000 in compensation, director fees, and dividends from the business (sum of columns I and L = $10,000 or more). Important: For short-period returns or a part-year shareholder, compensation, director fees, and dividends of each individual must be annualized to meet this requirement. Perform annualized calculations off-form. See definitions of officer, shareholder, family member, and outstanding stock in the general instructions for this form. If more lines are needed for listing the shareholders and officers, include additional copies of this form. Complete the taxpayer name and account number on each copy (and UBG member if applicable), and lines 3 and 4 as necessary. If using more than one copy of the form, continue the sequential numbering system for the Member Number in columns A, H, and O. Line 2: Add compensation and director fees in column L for each corporate officer who is not an active shareholder and enter the result on line 2 and on Form 4893, line 8. To determine which officers are not active shareholders, use the definition of active shareholders under line 1. Columns B and C: Identify each shareholder (including Corporations, Trusts, or Partnerships) and corporate officer by name and Social Security number. Corporations, Trusts, and Partnerships should be identified using the FEIN. PART 2: SHAREHOLDERS AND OFFICERS Line 3 (Columns A through N): In column A, assign numbers (beginning with 1) to all shareholders and officers in order of percentage of stock ownership (percentage in column G), starting with the highest percentage first. (Repeat this numbering in Part 2, column H, and Part 3, column O. It is essential that this numbering system is followed.) All NOTE: Column C: An individual or foreign entity that does not have a Social Security number or FEIN may enter in Column C “APPLD FOR” (an abbreviation for “applied for”) or “FOREIGNUS” (an abbreviation for “foreign filer”). Column E: Enter the percentage of outstanding stock each Attribution Example: Larry David Stone Betty Ann Stone Mary Elizabeth Stone Husband of Betty Stone, Father of Mary Stone, Stepfather of Tammie Rock, Step Grandfather of Kathy Rock Daughter of Bob Pebble, Wife of Larry Stone, Mother of Tammie Rock, Stepmother of Mary Stone, Grandmother of Kathy Rock Daughter of Larry Stone, Stepdaughter of Betty Stone Tammie Marie Rock Daughter of Betty Stone, Stepdaughter of Larry Stone, Spouse of Steve Rock, Mother of Kathy Rock, Granddaughter of Bob Pebble Steve Carl Rock Kathy Evelyn Rock Mike Joseph Rock Bob Kenneth Pebble Terry Robert Marble Spouse of Tammie Rock, Father of Kathy Rock, Brother of Mike Rock Daughter of Tammie and Steve Rock, Granddaughter of Betty Stone, Step Granddaughter of Larry Stone Brother of Steve Rock Father of Betty Stone, Grandfather of Tammie Rock Friend Part 2: Shareholders and officers - See instructions A 3. Member Number 34 B Name of shareholder (including corporation, trust, or partnership), officer, or family member receiving compensation from the business (Last, First, Middle) Part 3: List of family members and their corresponding relationship type O 4. Member Number P Q Spouse 1 Stone, Larry David 1 2 2 Stone, Betty Ann 2 1 3 Stone, Mary Elizabeth 3 4 Rock, Tammie Marie 4 5 5 Rock, Steve Carl 5 4 6 Rock, Kathy Evelyn 6 7 Rock, Mike Joseph 7 8 Pebble, Bob Kenneth 8 9 Marble, Terry Robert 9 Parent R Child S T Grandchild Check (X) if No Attributable Relationship 3 8 4 6 1 2 6 6 4-5 X 2 4 X shareholder or corporate officer owns directly. If a shareholder owned stock for a period less than the corporation’s tax year, multiply that shareholder’s percentage of ownership by the number of months owned and divide the result by the number of months in the corporation’s tax year. Taxpayers must account for 100 percent of the stock. If it is not accounted for, processing of the return may be delayed. Column F: Enter the percentage of outstanding stock each shareholder owns, including attribution of ownership from family members under IRC § 318(a)(1). Column G: When reporting ownership of a person who is an active shareholder, do not include in Column G any stock ownership attributed to this person from another active shareholder. See definition of active shareholders in the Part 1 instructions. For the purposes of determining disqualification from the SBAC, an active shareholder’s share of business income is not attributed to another active shareholder. EXAMPLE: In this case, the husband and daughter are active shareholders because their total compensation, director fees, and dividends from the business are greater than $10,000. The wife and son are not active because their total compensation, director fees, and dividends from the business are less than $10,000. Stock Percentage Column E Column F Column G Husband (active) 40% 100% 70% (all shareholders) (husband/wife/son) Wife (inactive) 10% 100% (all shareholders) 100% (all shareholders) Son (inactive) 20% 70% (husband/ wife/son) 70% (husband/wife/son) Daughter (active) 30% 80% (husband/ wife/daughter) 40% (wife/daughter) Column I: Enter total dividends received by each shareholder during the tax year from this business (used to determine active shareholders). Column J: Enter salaries, wages, and director fees that are attributable to each shareholder or corporate officer. Compensation paid by a professional employer organization to the officers of a client (if the client is a corporation) and to employees of the professional employer organization who are assigned or leased to and perform services for a client must be included in determining the eligibility of the client for this credit. NOTE: If a shareholder owned stock for less than the entire tax year of the corporation, or an officer served as an officer less than the entire tax year, report only the salaries, wages and director fees attributable while serving as an officer or shareholder. These amounts must be annualized when determining disqualifiers, but should be reported as actual amounts on this form. that are attributable to each shareholder or C Corporation officer. NOTE: If a shareholder owned stock for less than the entire tax year of the corporation, or an officer served as an officer less than the entire tax year, report only the employee insurance payments, pensions, etc., that are attributable while serving as an officer or shareholder. These amounts must be annualized when determining disqualifiers, but should be reported as actual amounts on this form. NOTE: All compensation must be included, whether or not the shareholder or corporate officer worked in Michigan. Column M: Multiply the percentage in column G by line 6 on Form 4893. UBGs: Multiply the percentage in column G by the sum of lines 12, 26 and 29 from the CIT Data on UBG Members (Form 4897). For Tax Years Less Than 12 Months: Shareholder compensation must be annualized when determining disqualifiers, but should be reported as actual amounts on this form. PART 3: LIST OF FAMILY MEMBERS AND THEIR CORRESPONDING RELATIONSHIPs Columns P through S represent relationships affected by attribution. For each shareholder listed in Part 2, column A, enter the corresponding number of the shareholder’s spouse, parent, child, or grandchild, if any, listed in Part 2, column A. If more than one number is entered in boxes P through S, separate numbers with a dash. For example, if a family member has three children, each child’s member number should appear in the “Child” column with dashes separating them (“2-3-4”). Do not use a dash to imply included numbers (such as “5-8” meaning “5 through 8”), but instead include each member number (“5-6-7-8”). Do not use commas. EXAMPLE (SEE THE ATTRIBUTION EXAMPLE ON THE PREVIOUS PAGE): Kathy Rock’s (6) parents (4 and 5) work for the company. Kathy will list “4-5” in column Q. NOTE: If the space provided in the line 4 columns is not adequate to list all of the corresponding relationships, include a separate sheet of paper with the member number from column O, the corresponding relationship, and the number of the member(s) with that relationship. Column T: Check column T for each shareholder listed only if columns P through S are blank (no attributable relationship exists). Include completed Form 4894 as part of the tax return filing. NOTE: All compensation must be included, whether or not the shareholder or corporate officer worked in Michigan. Column K: Enter employee insurance payments and pensions 35
More about the Michigan Form 4894 Corporate Income Tax TY 2016
We last updated the Schedule of Shareholders and Officers* in February 2017, so this is the latest version of Form 4894, fully updated for tax year 2016. You can download or print current or past-year PDFs of Form 4894 directly from TaxFormFinder. You can print other Michigan tax forms here.
Other Michigan Corporate Income Tax Forms:
|Form Code||Form Name|
|Form 4884||Pension Schedule|
|Form MI W-4P||Withholding Certificate for Michigan Pension or Annuity Payments|
|Form 5049||Worksheet for Married, Filing Separately and Divorced 5049|
|Form 777||Michigan Resident Credit for Tax Imposed by a Canadian Province|
|Form 4891||CIT Annual Return|
Michigan usually releases forms for the current tax year between January and April. We last updated Michigan Form 4894 from the Department of Treasury in February 2017.
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 4894
We have a total of four past-year versions of Form 4894 in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:
4894, Corporate Income Tax Schedule of Shareholders and Officers
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