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Michigan Free Printable  for 2020 Michigan Flow-Through Withholding Booklet

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Flow-Through Withholding Booklet
Form 5014

2018 MICHIGAN Corporate Income Tax S TA N DA R D TA X PAY E R S This booklet contains information on completing a Michigan Corporate I n c o m e Ta x r e t u r n f o r c a l e n d a r ye a r 2 01 8 o r a f i s c a l ye a r e n d i n g i n 2 01 9 . 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. W W W. M I FA S T F I L E . O R G F I LI N G D UE DATE: CALE N DAR FIL ER S — A P R IL 3 0 , 2 01 9 FISCAL F I LER S — TH E L A S T DAY O F T H E FO U R TH M O NTH AFTER 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 — 4890 (Rev. 01-19) Table of Contents General Information for Standard Taxpayers............ Page 1 Sourcing of Sales to Michigan.................................. Page 8 Corporate Income Tax Penalty and Interest Computation for Underpaid Estimated Tax (Form 4899)............................................................ Page 61 Corporate Income Tax Annual Return (Form 4891)............................................................ Page 13 Unitary Relationships with Flow-Through Entities (Form 4900).............................................. Page 65 Corporate Income Tax Small Business Alternative Credit (Form 4893)............................. Page 25 Corporate Income Tax Schedule of Recapture of Certain Business Tax Credits (Form 4902)............................................................ Page 71 Corporate Income Tax Schedule of Shareholders and Officers (Form 4894)......... Page 29 Corporate Income Tax Loss Adjustment for the Small Business Alternative Credit (Form 4895)............................................................ Page 37 Corporate Income Tax Unitary Business Group Affiliates Excluded from the Return of Standard Taxpayers (Form 4896).................... Page 45 Corporate Income Tax Data on Unitary Business Group Members (Form 4897).............. Page 49 Non-Unitary Relationships with Flow-Through Entities (Form 4898)..................... Page 57 Extension of Time to File Michigan Tax Returns (Form 4)................................................... Page 85 Supplemental Instructions for Standard Members in Unitary Business Groups.................... Page 87 2018 General Information for Standard Taxpayers Insurance Companies and Financial Institutions: See the Corporate Income Tax (CIT) Instruction Booklet for Insurance Companies (Form 4904) or the CIT Instruction Booklet for Financial Institutions (Form 4907) at www.michigan.gov/taxes. This booklet is intended as a guide to help complete the Corporate Income Tax (CIT) return. It does not take the place of the law. of every member and after elimination of intercompany transactions. The tax liability threshold of $100 is determined on a group basis. Who Files a Standard Return? Insurance companies and financial institutions will calculate tax liability using specialized tax bases and rules, which are covered in separate booklets (see the Insurance Company Annual Return for Corporate Income and Retaliatory Taxes (Form 4905) and Form 4908, respectively). Under the CIT, taxpayer means a C Corporation, insurance company, financial institution, or a Unitary Business Group (UBG) liable for tax, interest, or penalty. All taxpayers (described here as standard taxpayers) other than financial institutions and insurance companies with apportioned or allocated gross receipts equal to $350,000 or more and whose CIT liability is greater than $100 must file a CIT Annual Return (Form 4891). (See “Filing if Tax Year Is Less Than 12 Months” in this “General Information” section.) The law does not require the filing of the CIT return by a taxpayer whose gross receipts apportioned or allocated to Michigan are less than $350,000 or whose CIT liability is less than or equal to $100. There is not a separate form for reporting that a taxpayer has no filing requirement. However, taxpayers without a filing requirement may choose to file a return to claim a refund of the estimated payments made or flow-through withholding paid on their behalf or create and carry forward an available business loss. Public Law 86-272: If a taxpayer’s activity is protected under Public Law (PL) 86-272, but the taxpayer wishes to claim a refund, the taxpayer must file a Form 4891. When filing this form, leave lines 12 through 41 and lines 49 through 53 blank, and include an attachment explaining the circumstances of the PL 86-272 protection. Line 42 and line 43 must be completed to report any recapture of credits. UBGs: If all members of the UBG are claiming PL 86-272 protection, then the UBG will leave lines 12 through 41 and lines 49 through 53 blank and include a statement explaining the circumstances of the PL 86-272 protection for each member. Lines 42 and 43 of form 4891 must be completed to report any recapture of credits by the group. (Each member will leave lines 21 through 35 blank on the CIT Data on Unitary Business Group Members, Form 4897.) However, as long as one member of a UBG has nexus with Michigan and exceeds the protections of PL 86-272, all members of the UBG — including members protected under PL 86-272 — must be included when calculating the UBG’s CIT tax base and apportionment formula. PL 86-272 will only remove income from the apportionable CIT tax base when all members of the UBG are protected under PL 86-272. EXCEPTION: A person that would be a standard taxpayer if viewed separately is defined and taxed as a financial institution if it is owned, directly or indirectly, by a financial institution and is in a UBG with its owner. A person in this situation will report on the CIT UBG Combined Filing Schedule for Financial Institutions (Form 4910), which supports the CIT Annual Return for Financial Institutions (Form 4908). UBGs: For a UBG (discussed in greater detail below), the $350,000 filing threshold is calculated by adding gross receipts Using This Booklet This CIT booklet includes forms and instructions for all “standard taxpayers” (all filers except insurance companies and financial institutions). These forms are designed for calendar year 2018 and for a fiscal filer with a tax year ending in 2019. Read the “General Information” section first. The Michigan Department of Treasury (Treasury) recommends taxpayers and tax preparers also review the instructions for all forms. Overview of CIT for Standard Taxpayers The CIT imposes a tax on all standard taxpayers with apportioned or allocated gross receipts (annualized, if applicable) equal to $350,000 or more and whose CIT liability is more than $100. The CIT tax rate is 6 percent. The statute offers one non-refundable credit that is available for standard taxpayers. The Small Business Alternative Credit is available for qualifying standard taxpayers by calculating the credit on the CIT Small Business Alternative Credit (Form 4893). For standard taxpayers, the CIT tax base is the taxpayer’s federal taxable income (as defined for CIT purposes), with certain additions and subtractions. Filing CIT Quarterly Tax Estimates 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. NOTE: Formerly, taxpayers could pay by check on a monthly or quarterly basis by remitting a check with a Combined Return for Michigan Tax (Form 160). Form 160 was replaced. The new form no longer accommodates CIT payments. As a result, Form 4913 is the only form that supports a CIT estimated payment. 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. 1 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) Corporate Income Tax Division at 517-636-6925 for alternate payment methods. 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 “Corporate Income Tax-Michigan Business Tax,” then “Corporate Income Tax Handbook” for the applicable tax year. Follow your software instructions for submitting attachments with an e-filed return. 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. If the CIT 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. 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 under the Income Tax Act 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: 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 and filed a CIT return for 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 CIT liability for the current year. There is no prior-year safe harbor for a taxpayer’s first CIT tax period. For a taxpayer’s first CIT tax period the estimates must equal at least 85 percent of the total CIT liability, as explained above. 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. Electronic Filing of CIT Returns Michigan has an enforced CIT e-file mandate. Software developers producing CIT preparation software and computergenerated 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. 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. 2 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 CIT returns, complete all federal tax forms. These forms may include: • C Corporations — U.S. Form 1120 and Schedules D, K, 851, 940, 4562, 4797, and 8825. • Limited Liability Companies (LLCs) — Federal forms listed above if LLC files as a C Corporation for federal return purposes. Reference these federal forms to complete Form 4891. Copies of certain pages from these federal forms must also be attached to the annual return filed. See the instructions for the annual return for further details. Completing Michigan Forms Treasury captures the information from paper CIT 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: 0123456789. 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 a CIT Annual Return First, determine whether the taxpayer has nexus with Michigan. Nexus is a legal term that expresses whether a taxpayer has sufficient connection to Michigan to justify subjecting the taxpayer to Michigan tax. See Revenue Administrative Bulletins (RAB) 2013-9 and 2014-5 on Treasury’s Web site at www.michigan.gov/treasury. Next, determine whether the taxpayer has $350,000 or more of gross receipts that are apportioned or allocated to Michigan. (See “Filing if Tax Year Is Less Than 12 Months” in this “General Information” section, if applicable.) Gross receipts means the entire amount received by the taxpayer from any activity, whether in intrastate, interstate, or foreign commerce, carried out for direct or indirect gain, benefit, or advantage to the taxpayer or to others, with certain exceptions. Gross receipts also include the imputed gross receipts from any (unitary or non-unitary) flow-through entity that is not electing to be taxed under MBT and from which the taxpayer receives a distributive share of income or loss. The statutory definition of gross receipts is found in Michigan Compiled Laws (MCL) 206.607(4). Guidance on gross receipts can be found in the instructions for the CIT Annual Return (Form 4891). Gross receipts is a worldwide figure. For a taxpayer that has nexus only with Michigan, all gross receipts are allocated to Michigan. A taxpayer that has nexus with Michigan and at least one other state or foreign country must calculate its apportionment percentage and multiply its total gross receipts by that apportionment percentage. See Form 4891, lines 9a through 9g, and accompanying instructions for this calculation. The resulting figure is the taxpayer’s gross receipts apportioned to Michigan. Gross receipts include the imputed gross receipts from any (unitary or non-unitary) flow-through entity not electing to be taxed under MBT and from which the taxpayer receives a distributive share of income or loss. The imputed gross receipts attributed to the taxpayer are the apportioned or allocated gross receipts based on the flow-through entity’s apportionment percentage multiplied by the percentage of the taxpayer’s share of distributive income as compared to the total distributive income of that flow-through entity. If all of the foregoing considerations determine that a taxpayer must file a CIT return, standard taxpayers will use Form 4891 to file for CIT. It is available to all standard taxpayers, and allows for the calculation of the Small Business Alternative Credit. For a taxpayer using Form 4891, first complete lines 1 through 39 to calculate Corporate Income Tax Before Credit. At that point, if the Small Business Alternative Credit will be claimed, complete the CIT Small Business Alternative Credit (Form 4893). In addition, a taxpayer that is claiming the Small Business Alternative Credit will need to complete the Schedule of Shareholders and Officers (Form 4894) to determine if they qualify for the credit. After the Small Business Alternative Credit has been determined on Form 4893, line 14 or line 18, carry the figure to Form 4891, line 40. Follow the Form 4891 instructions for the remaining lines. If preparing a UBG return for a standard taxpayer, complete the CIT Data on Unitary Business Group Members (Form 4897) for each member first, as this form provides the data that is required on Form 4891. Further General Guidance A UBG must file a combined CIT return. (For a definition of UBG, and details on filing a combined CIT return, see “UBGs and Combined Filing” in this “General Information” section.) Producers of oil and gas must add back expenses and subtract income that was included in federal taxable income and resulted from the production of oil and gas if that production of oil and gas is subject to the Severance Tax on Oil or Gas, 1929 PA 48., and from the production of minerals if that production is subject to severance tax in PA 410 of 2012. Expenses should be added back on line 23, and income should be reported on line 30. Businesses reporting less than 12 months must annualize gross receipts to determine whether they are required to file. (See “Filing if Tax Year Is Less Than 12 Months” in this “General Information” section for more guidance on annualization.) If apportioned or allocated gross receipts are below the filing requirement, there is no legal obligation to file a return or pay the tax. If you are not legally required to file a return but you wish to preserve the carryforward of a business loss or claim a refund of estimated payments or flow-through withholding paid on behalf of the entity, a return must be filed. There is no form to notify Treasury that the taxpayer has no CIT filing requirement. 3 LLC. An LLC is classified for CIT purposes according to its federal tax classification. The following terms, whenever used in CIT 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 an incorporated entity is an “officer” in this LLC. NOTE: In this booklet, the term “corporation,” used without a C refers to a C Corporation. NOTE: A person that is a disregarded entity for federal income tax purposes, including a single member LLC or qualified subchapter S subsidiary (Q-Sub), is disregarded for purposes of CIT. If the owner of the disregarded entity files CIT, the activity of the disregarded entity must be included on that return. UBGs and Combined Filing NOTE: UBGs are addressed here, 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” section of this instruction booklet. General Overview of Unitary Taxation More than 20 states have adopted unitary taxation. Unitary taxation is a method of taxing related persons that, if it applies, generally treats those related persons as if they were one. There are specific tests, discussed below, to determine whether two or more business entities are sufficiently connected by ownership and business relationships to be treated as a group. If those tests are satisfied and a UBG is found to exist, in most cases the members of that UBG will file a single CIT return. One member will be designated as the group’s representative for filing the return and corresponding with Treasury. This member is referred to throughout these instructions as the designated member (DM). Included in that return will be separate forms that report income, deductions, and activities separately by member, and then the combined amounts are entered on the Form 4891. References in the instructions to “the taxpayer” generally will refer to the group rather than any one of its members. This is a simplification for introductory purposes, and there are many details and exceptions described throughout the CIT forms and instructions. In particular, tax credits, transactions between members, and the presence of financial institutions or insurance companies in the group require careful attention. One key issue in dealing properly with unitary taxation is to recognize that it is not limited to large, multi-state companies. Businesses of any size and any geographic extent may find that they are members of a UBG. Determining the Existence and Membership of a UBG Unitary Business Group means a group of United States 4 persons that are corporations, insurance companies, or financial institutions, 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) 206.607(3). Control Test and Relationship Tests. For information on CIT topics, see the Treasury Web site at www.michigan.gov/ treasury. Revenue Administrative Bulletin (RAB) 2013-1 addresses the UBG Control Test and Relationship Tests. Role of the Designated Member: The DM speaks, acts, and files the CIT return on behalf of the UBG for CIT purposes. Only the DM may file a valid extension request for the UBG. Treasury maintains the UBG’s CIT tax data (e.g., prior CIT returns, overpayment credit forward) under the DM’s name and Federal Employer Identification Number (FEIN). Exemption Guidelines for CIT The following may be exempt from CIT: • Most persons who are exempt from federal income tax under the IRC. • Nonprofit cooperative housing corporations. • Foreign person that is domiciled in a member country of the North American free trade agreement if the foreign person is domiciled in a subnational jurisdiction that does not impose an income tax on a similarly situated person domiciled in Michigan. For purposes of this provision, foreign person is defined in MCL 206.625(5)(c). • Domestic International Sales Corporations (DISCs) as defined in IRC 992. • A person that is a self-insurer group operating under an agreement entered pursuant to section 611(2) of the worker’s disability compensation act of 1969, 1969 PA 317, MCL 418.611. If a taxpayer is exempt under the first bullet above, but has unrelated business taxable income as defined in the IRC; that business activity is subject to the CIT and a return will be required if the apportioned or allocated gross receipts are $350,000 or more from the unrelated business activity. Foreign persons that are not exempt from the CIT must calculate business income, gross receipts, CIT tax base, and the sales factor differently than domestic taxpayers. Refer to MCL 206.625(2)-(4) for details. For a complete list of exemptions, consult the CIT (PA 38 of 2011, as amended) at www.legislature.mi.gov. If a taxpayer is exempt and has no unrelated business taxable income, filing a CIT return is not required. Flow-Through Withholding On January 1, 2012, several changes to the Income Tax Act of 1967 (ITA) went into effect establishing a new withholding requirement for flow-through entities that have members, partners, or shareholders that are corporations or other flowthrough entities. These withholding requirements are known as Flow-Through Withholding (FTW). Under FTW, every flow-through entity with business activity in Michigan that reasonably expects to accrue more than $200,000 in apportioned or allocated business income for the tax year must withhold on the distributive share of each member that is a corporation or an intermediate flow-through entity at the CIT rate of 6 percent. “Business income” for this purpose is defined using the same rules as those contained in the CIT. However, because FTW is concerned with the business income of flowthrough entities and not corporations, business income for flow-through entities is further defined to include payments and items of income and expense that are attributable to business activity of the flow-through entity and separately reported to its members. The distributive share of business income of a flowthrough entity is subject to FTW, and the CIT, even if it is not actually distributed or paid to the member. When a corporation had taxes withheld under FTW, the amount is treated as a CIT payment that will be applied against the corporation’s CIT liability. A corporation that has had taxes withheld on its distributive share of flowthrough entity business income is not required to make quarterly estimated payments on that income. To claim these payments, the corporation will be required to file Form 4891. If the corporation is a member of a UBG, then these payments shall be claimed on the member’s Form 4897, and the sum of all members’ FTW payments shall be claimed on the UBG’s Form 4891. If the corporation is below one of the CIT filing thresholds then it may file a Form 4891 to claim these payments. The flow-through entity is required to notify the members it has withheld on of the amount of withholding paid on behalf of that member as well as other information that the member will need to complete its CIT return. There is no set method for this reporting to be done. Treasury has recommended that this be reported to the members as a supplemental attachment to the federal Schedule K-1 that is required to be submitted to each member. For a corporation, this information will include the: • • • • FEIN of the flow-through entity Tax year of the flow-through entity FTW paid on behalf of that member Member’s tentative distributive share of the flow-through entity’s business income • Flow-through entity’s sales that have been sourced to Michigan • Flow-through entity’s total sales. There are also several exemptions from the FTW requirements, which are explained in the FTW Forms and Instructions Booklet (Form 5014) and on Treasury’s Web site at www. michigan.gov/ftw. NOTE: Under Public Act 158 of 2016, Flow-Through Withholding is no longer required for flow-through entities’ (FTEs’) tax years beginning after June 30, 2016. Treasury will no longer support the processing of forms or withholding payments for FTEs with tax years beginning after that date. For FTEs with tax years beginning before July 1, 2016, a full year’s withholding payments and annual return should be paid and filed. What Lead Form to File File Form 4891 if: • Apportioned or allocated gross receipts (annualized, if applicable) are $350,000 or more and the standard taxpayer’s CIT tax liability is greater than $100. • Apportioned or allocated gross receipts (annualized, if applicable) are less than $350,000, and: ○○ A refund is claimed, or ○○ A loss was generated during the filing period and will create a carry forward to the next year, or ○○ A CIT business loss carryforward from a prior year is reported (filing in this case is necessary to move the carryforward to the following year). This list does not cover all situations. See instructions for each form for more information. Different primary returns and instruction booklets are available for insurance companies (Form 4905) and financial institutions (Form 4908). The tax base for each of these special taxpayer categories is fundamentally different than for standard taxpayers. Filing if Tax Year Is Less Than 12 Months In most cases, annual returns must be filed for the same period as federal income tax returns. If the filing period is less than 12 months, annualize to determine if there is a filing requirement, which forms to file, and eligibility for a Small Business Alternative Credit. Do not use annualized numbers on a return unless specified; use them only to determine annual return and estimated payment filing requirements, and qualifications for the Small Business Alternative Credit. 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 or after 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.) Example 1: A taxpayer with a federal tax year beginning on Saturday, December 28, 2013, will be treated as follows: • 2013 tax year end of December 31, 2013. • Due date of April 30, 2014. • 2014 tax year beginning January 1, 2014. Example 2: A taxpayer with a federal tax year ending on Friday, January 3, 2014, will be treated as follows: • 2013 tax year end of December 31, 2013. • Due date of April 30, 2014. • 2014 tax year beginning on January 1, 2014. Example 3: A 52- or 53-week year closing near the end of January is common in the retail industry. Such a taxpayer will 5 be treated as follows: • 2013-14 fiscal year end will be January 31, 2014. • Due date will be May 31, 2014. • 2014-15 fiscal year will begin on February 1, 2014. Annualizing Multiply each amount required, including gross receipts, business income, and 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 one month if the business operated for more than half the days of the month. A business whose entire tax year is 15 days or less, however, is considered in business for one month. • If annualized apportioned or allocated gross receipts are $350,000 or more and the CIT tax liability is greater than $100, file an annual return. • Annualize prior year’s CIT 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 installments. ○○ Example: A fiscal year taxpayer with a tax year ending in June files a six-month return ending June 2014 reporting a tax liability of $9,000. Estimates for the tax year ending June 2015 may be based on the annualized liability of $18,000. Estimates must be paid in four equal installments of $4,500. See appropriate forms (CIT Small Business Alternative Credit (Form 4983), and CIT Schedule of Shareholders and Officers (Form 4894)) for annualization instructions pertaining to the Small Business Alternative Credit. Due Dates of Annual Returns For the 2018 calendar year, all annual returns are due April 30, 2019. All fiscal filers with a federal tax year ending in 2019, will be required to file the 2018-2019 fiscal year return by the last day of the fourth month after the end of the tax year. An extension of time to file is not an extension of time to pay. 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). Filing a federal extension request with the IRS does not automatically grant a CIT extension. The IRS does not notify state governments of extensions. Extension applications must be postmarked on or before the due date of an annual return. Although Treasury may grant extensions for filing CIT 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 6 with appropriate estimated tax payments are received, Treasury will grant an extension of eight months to file the tax return. A written response will be sent to the legal address on file when a valid extension application is received. If a CIT 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. An extension of time to file will also extend the statute of limitations. Amending a Return To amend a current or prior year annual return, complete the Michigan CIT Amended Return (Form 4892) that is applicable for that year 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. 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). 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 the CIT 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 CIT Penalty and Interest Computation for Underpaid Estimated Tax (Form 4899). 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, 2018 5.15% 0.0001411 July 1, 2018 5.41% 0.0001482 January 1, 2019 5.9% 0.0001616 For a list of interest rates, click on “Reports and Legal Resources” on the Treasury Web site at www.michigan.gov/treasury/. Interest rates are updated in Revenue Administrative Bulletins (RABs). Signing the Return All returns must be signed and dated by the taxpayer or the taxpayer’s authorized agent. This may be the owner, 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. 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 use a clip in the upper-left corner or rubber band the pages together. (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: 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 CIT 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. 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. The MI-8879 (Form 4763) 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. CIT 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. Mailing Addresses Mail the annual return and all necessary schedules to: With payment: Michigan Department of Treasury PO Box 30804 Lansing MI 48909 Without payment: Michigan Department of Treasury PO Box 30803 Lansing MI 48909 Mail an extension application (Form 4) to: Michigan Department of Treasury PO Box 30774 Lansing MI 48909-8274 Mail 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 Michigan Treasury (TR) assigned number, the tax year, and “CIT” 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. Mail correspondence to: Michigan Department of Treasury Business Taxes Division, CIT Unit PO Box 30059 Lansing MI 48909 To Request Forms Internet Current and past year forms are available on Treasury’s Web site at www.michigan.gov/treasuryforms. Alternate Format Printed material in an alternate format may be obtained by calling 517-636-6925. TTY Assistance is available using TTY through the Michigan Relay Service by calling 711. Revenue Administrative Bulletins (RABs) Treasury provides updates via RABs on the Treasury Web site at www.michigan.gov/treasury/. Currently relevant RABs for the CIT are: • 2013-9, CIT Definition of “Actively Solicits” • 2013-1, CIT Unitary Business Group Control Test and Relationship Tests • 2014-5, Michigan CIT Nexus Standards • 2015-20, Where Benefit of Services is Received • 2018-23, Interest Rate 7 Sourcing of Sales to Michigan under the Corporate Income Tax (CIT) TANGIBLE AND REAL PROPERTY Sale of tangible personal property Property is shipped or delivered, or, in the case of electricity and gas, the contract requires the property to be shipped or delivered, to any purchaser within this State based on the ultimate destination at the point that the property comes to rest regardless of the free on board point or other conditions of the sales. Property stored in transit for 60 days or more prior to receipt by the purchaser or the purchaser’s designee, or in the case of a dock sale not picked up for 60 days or more, shall be deemed to have come to rest at this ultimate destination. Property stored in transit for fewer than 60 days prior to receipt by the purchaser or the purchaser’s designee, or in the case of a dock sale picked up before 60 days, is not deemed to have come to rest at this ultimate destination. NOTE: Tangible personal property means that term as defined in Section 2 of the Use Tax Act, Public Act (PA) 94 of 1937, MCL 205.92. Sale, lease, rental or licensing of real property Property is located in this State. Lease or rental of tangible personal property To the extent the property is used in this State. Extent of use is determined by multiplying the receipts by a fraction, the numerator is the number of days of physical location of the property in this State during the lease or rental period in the tax year and the denominator is the number of days of physical location of the property everywhere during all lease or rental periods in the tax year. If the physical location of the property during the lease or rental period is unknown or cannot be determined, the tangible personal property is used in the state in which the property was located at the time the lease or rental payer obtained possession. Lease or rental of mobile transportation property owned by the taxpayer To the extent property is used in this State. For example, the extent an aircraft will be deemed to be used is determined by multiplying all the receipts from the lease or rental of the aircraft during the tax year by a fraction, the numerator of the fraction is the number of landings of the aircraft in this State in the tax year and the denominator of the fraction is the total number of landings of the aircraft in the tax year. Property is used by the purchaser in this State. If property is used in more than one state, royalties or other income will be apportioned to this State pro rata according to the portion of use in this State. If the portion of use in this State cannot be determined, the royalties or other income will be excluded from both the numerator and the denominator. If the purchaser of intangible property uses it or the rights to the intangible property, in the regular course of its business operations in this State, regardless of the location of the purchaser’s customers. SALES FROM PERFORMANCE OF SERVICES (IN GENERAL) Receipts from performance of services, in general Recipient of services receives all of the benefit of the services in this State. If the recipient of the services receives some of the benefit of the services in this State, receipts are included in the numerator of the apportionment factor in proportion to the extent that the recipient receives benefit of the services in this State. For more information regarding how a taxpayer determines where the recipient of services performed receives the benefit of those services and on other CIT topics, see the Michigan Department of Treasury (Treasury) Web site at www. michigan.gov/treasury/. Review “Corporate Income Tax” under “Taxes.” Treasury also posts updates via Revenue Administrative Bulletin (RAB). Also see RAB 2015-20, Where Benefit of Services is Received, FINANCIAL SERVICES Sales derived from securities brokerage services including commissions on transactions, the spread earned on principal transactions in which broker buys or sells from its account, total margin interest paid on behalf of brokerage accounts owned by broker’s customers, and fees and receipts of all kinds from underwriting of securities Multiply the total dollar amount of receipts from securities brokerage services by a fraction, the numerator of which is the sales of securities brokerage services to customers within this State, and the denominator of which is the sales of securities brokerage services to all customers. INTANGIBLE PROPERTY (IN GENERAL) If receipts from brokerage services can be associated with a particular customer, but it is impractical to associate the receipts with the address of the customer, then the address of the customer will be presumed to be the address of the branch office that generates the transactions for the customer. Royalties and other income received for use of or for the privilege of using intangible property including patents, knowhow, formulas, designs, processes, patterns, copyrights, trade names, service names, franchises, licenses, contracts, customer lists, custom computer software, or similar items Sales of services derived directly or indirectly from sale of management, distribution, administration, or securities brokerage services to, or on behalf of, a regulated investment company or its beneficial owners, including receipts derived directly or indirectly from trustees, sponsors, or participants If the extent of use of any transportation property within this State cannot be determined, the receipts are in this State if the property has its principal base of operations in this State. 8 of employee benefit plans that have accounts in a regulated investment company To the extent the shareholders of the regulated investment company are domiciled within this State. For this purpose, domicile means the shareholder’s mailing address on the records of the regulated investment company. If the regulated investment company or the person providing management services to the regulated investment company has actual knowledge that the shareholder’s primary residence or principal place of business is different than the shareholder’s mailing address, then the shareholder’s primary residence or principal place of business is the shareholder’s domicile. A separate computation must be made with respect to receipts derived from each regulated investment company. Total amount of sales attributable to this State must be equal to total receipts received by each regulated investment company multiplied by a fraction determined as follows: • The numerator of the fraction is the average of the sum of the beginning-of-year and end-of-year number of shares owned by the regulated investment company shareholders who have their domicile in this State. • The denominator of the fraction is the average of the sum of the beginning-of-year and end-of-year number of shares owned by all shareholders. • For purposes of the fraction, the year will be the tax year of the regulated investment company that ends with or within the tax year of the taxpayer. Receipts from the origination of a loan or gains from sale of a loan secured by residential real property Only if one or more of the following apply: • Real property is located in this State. • Real property is located both within this State and one or more other states and more than 50 percent of the fair market value of the real property is located within this State. • More than 50 percent of the real property is not located in any one state and the borrower is located in this State.* Interest from loans secured by real property Property is located in this State. If property is located both in this State and one or more other states, and more than 50 percent of the fair market value of the real property is located within this State. If more than 50 percent of the fair market value of the real property is not located within any one state, if the borrower is located in this State.* The determination of whether the real property securing a loan is located in this State will be made at the time the original agreement was made and any and all subsequent substitutions of collateral will be disregarded. Interest from a loan not secured by real property Borrower is located in this State* Gains from sale of a loan not secured by real property, including income recorded under coupon stripping rules of IRC 1286 Borrower is located in this State* Credit card receivables, including interest, fees, and penalties from credit card receivables and receipts from fees charged to cardholders, such as annual fees Billing address of the cardholder is located in this State Sale of credit card or other receivables Billing address of the customer is located in this State Credit card issuer’s reimbursements fees Billing address of the cardholder is located in this State. Merchant discounts, computed net of any cardholder chargebacks, but not reduced by any interchange transaction fees or by any issuer’s reimbursement fees paid to another for charges made by its cardholders Commercial domicile of the merchant is located in this State. Loan servicing fees derived from loans of another secured by real property Real property is located in this State. Real property is located both in and out of this State and one or more states if more than 50 percent of the fair market value of the real property is located in this State. More than 50 percent of the fair market value of the real property is not located in any one state, and the borrower is located in this State.* If the location of the security cannot be determined, then loan servicing fees for servicing either the secured or the unsecured loans of another are in this State if the lender to whom the loan servicing service is provided is located in this State. Loan servicing fees derived from loans of another not secured by real property Borrower is located in this State.* If location of the security cannot be determined, then loan servicing fees for servicing either the secured or the unsecured loans of another are in this State if the lender to whom the loan servicing service is provided is located in this State. Sale of securities and other assets from investment and trading activities, including, but not limited to, interest, dividends, and gains Attributable to the State if the person’s customer is in this State, or if the location of the person’s customer cannot be determined, both of the following: • Interest, dividends, and other income from investment assets and activities and from trading assets and activities, including, but not limited to, investment securities; trading *A borrower is considered located in this State if the borrower’s billing address is in this State. 9 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 this State if the average value of the assets is assigned to a regular place of business of the taxpayer within this State. ○○ Interest from federal funds sold and purchased and from securities purchased under resale agreements and securities sold under repurchase agreements are in this State if the average value of the assets is assigned to a regular place of business of the taxpayer within this State. ○○ Amount of receipts and other income from investment assets and activities is in this State if assets are assigned to a regular place of business of the taxpayer within this State. • 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 this State if the assets are assigned to a regular place of business of the taxpayer within this State. TRANSPORTATION SERVICES Receipts from transportation services Generally, receipts will be proportioned based on the ratio that revenue miles of the person in this State bear to the revenue miles of the person everywhere. Revenue mile means the transportation for consideration of 1 net ton in weight or 1 passenger the distance of 1 mile. For transportation services that source sales based on revenue miles, enter a sales amount on Form 4891, Line 9a, by multiplying total sales of the transportation service by the ratio of Michigan revenue miles over revenue miles everywhere for that type of transportation service. Revenue mile means the transportation for a consideration of one net ton in weight or one passenger the distance of one mile. Receipts from maritime transportation services will be attributable to this State as follows: • 50 percent of those receipts that either originate or terminate in this State. Michigan Ton Miles Total Ton Miles Michigan Passenger Miles Total Passenger Miles = x Receipts from Transportation of Property x Receipts from Transportation of Passengers + Michigan Sales from Transportation Services • Oil by pipeline – Proportioned based on the ratio that the receipts for the barrel miles transported in this State bear to the receipts for the barrel miles transported by the person everywhere. • Gas by pipeline – Proportioned based on the ratio that the receipts for the 1,000 cubic feet miles transported in this State bear to the receipts for the 1,000 cubic feet miles transported by the person everywhere. NOTE: If a taxpayer can show that revenue mile information is not available or cannot be obtained without unreasonable expense to the taxpayer, receipts attributable to this State will be that portion of the revenue derived from transportation services performed everywhere that the miles of transportation services performed in this State bears to the miles of transportation services performed everywhere. If Treasury determines that the information required for the calculations above are not available or cannot be obtained without unreasonable expense to the taxpayer, Treasury may use other available information that in the opinion of Treasury will result in an equitable allocation of the taxpayer’s receipts to this State. NOTE: Only transportation services are sourced using revenue miles. To the extent the taxpayer has business activities or revenue streams not from transportation services, those receipts should be sourced accordingly. TELECOMMUNICATIONS SERVICES NOTE: Terms used to describe the sale of telecommunications service or mobile telecommunications service have the same meaning as those terms defined in the Streamlined Sales and Use Tax Agreement administered under the Streamlined Sales and Use Tax Administration Act, PA 174 of 2004, MCL 205.801 to 205.833. • 100 percent of those receipts that both originate and terminate in this State. Sale of telecommunications service telecommunications service, in general Receipts attributable to this State of a person whose business activity consists of the transportation of: Customer’s place of primary use of the service is in this State. As used here, place of primary use means the customer’s residential street address or primary business street address where the customer’s use of the telecommunications service primarily occurs. • Property and individuals – Proportioned based on the total receipts for passenger miles and ton mile fractions, separately computed and individually weighted by the ratio of receipts from passenger transportation to total receipts from all transportation, and by the ratio of receipts from freight transportation to total receipts from all transportation, respectively. 10 or mobile For mobile telecommunications service, the customer’s residential street address or primary business street address is the place of primary use only if it is within the licensed service area of the customer’s home service provider. Sale of telecommunications service sold on an individual call-by-call basis Call both originates and terminates in this State. Call either originates or terminates in this State and the service address is located in this State. Sale of postpaid telecommunications service Origination point of the telecommunication signal (as first identified by the service provider’s telecommunication system or as identified by information received by the seller from its service provider if the system used to transport telecommunication signals is not the seller’s) is located in this State. Sale of prepaid telecommunications service prepaid mobile telecommunications service or Purchaser obtains the prepaid card or similar means of conveyance at a location in this State. Recharging a prepaid telecommunications service or mobile telecommunications service Purchaser’s billing information indicates a location in this State. Sale of private communication services 100 percent of the receipts from the sale of each channel termination point within this State. 100 percent of the receipts from the sale of the total channel mileage between each termination point within this State. 50 percent of the receipts from the sale of service segments for a channel between two customer channel termination points, one of which is located in this State and the other is located outside of this State, which segments are separately charged. Receipts from the sale of service for segments with a channel termination point located in this State and in two or more other states or equivalent jurisdictions, and which segments are not separately billed, are in this State based on a percentage determined by dividing the number of customer channel termination points in this State by the total number of customer channel termination points. Sale of billing services and ancillary services for telecommunications service Based on the location of the purchaser’s customers. If the location of the purchaser’s customers is not known or cannot be determined, the sale of billing services and ancillary services for telecommunications service are in this State based on the location of the purchaser. To access a carrier’s network or from the sale of telecommunications services for resale 100 percent of receipts from interstate end user access line charges, if customer’s service address is in this State. As used here, “interstate end user access line charges” includes, but is not limited to, the surcharge approved by the federal communications commission and levied pursuant to 47 CFR 69. Gross receipts from sales of telecommunications services to other telecommunication service providers for resale will be sourced to this State using the apportionment concepts used for non-resale receipts of telecommunications services if the information is readily available to make that determination. If the information is not readily available, then the taxpayer may use any other reasonable and consistent method. Taxpayer whose business activities include live radio or television programming as described in Subsector Code 7922 of Industry Group 792 or are included in Industry Groups 483, 484, 781, or 782, under the SIC Code as compiled by the U.S. Department of Labor, or any combination of the business activities included in those groups Media receipts are attributable to this State only if the commercial domicile of the customer is in this State and the customer has a direct connection or relationship with the taxpayer pursuant to a contract under which the media receipts are derived. Media receipts from the sale of advertising are attributable to this State if the customer of that advertising is commercially domiciled in this State and receives some of the benefit of the sale of that advertising in this State. Sales are included in proportion to the extent that the customer receives the benefit of the advertising in this State. If the taxpayer is a broadcaster and if the customer receives some of the benefit of the advertising in this State, the media receipts for that sale of advertising from that customer will be proportioned based on the ratio that the broadcaster’s viewing or listening audience in this State bears to its total viewing or listening audience everywhere. Media property means motion pictures, television programs, Internet programs and Web sites, other audiovisual works, and any other similar property embodying words, ideas, concepts, images, or sound without regard to the means or methods of distribution or the medium in which the property is embodied. Media receipts means receipts from the sale, license, broadcast, transmission, distribution, exhibition, or other use of media property and receipts from the sale of media services. Media receipts do not include receipts from the sale of media property that is a consumer product that is ultimately sold at retail. Media services means services in which the use of the media property is integral to the performance of those services. OTHER 100 percent of the receipts from access fees attributable to intrastate telecommunications service that both originates and terminates in this State. Default for all other receipts not otherwise sourced here 50 percent of the receipts from access fees attributable to interstate telecommunications service if the interstate call either originates or terminates in this State. Sourced based on where the benefit to the customer is received, or if where the benefit to the customer is received cannot be determined, sourced to the customer’s location. 11 12 Michigan Department of Treasury 4891 (Rev. 04-18), Page 1 of 2 This form cannot be used as an amended return; use the CIT Amended Return (Form 4892). 2018 MICHIGAN Corporate Income Tax Annual Return Issued under authority of Public Act 38 of 2011. MM-DD-YYYY MM-DD-YYYY 1. Return is for calendar year 2018 or for tax year beginning: 2. Taxpayer Name (print or type) and ending: 3. Federal Employer Identification Number (FEIN) 4. Street Address City State 5. NAICS (North American Industry Classification System) Code ZIP/Postal Code 6. If a Final Return, Enter Effective End Date Check if a special sourcing formula for transportation services is used in the sourcing of Sales to Michigan. 8. Check if Filing Michigan Unitary Business Group Return. (Include Form 4896, if applicable, and Form 4897.) 7a. Country Code 7b. Affiliated Group Election year (MM-DD-YYYY) Important: If the tax liability on line 41 is less than or equal to $100, or the gross receipts on line 11 are less than $350,000, you are not required to file this return or pay the tax. Short period filers, see instructions. 9. Apportionment Calculation — If any amount in line 9a through 9e is zero, enter zero. All lines must be completed. a. Michigan sales of the corporation/Unitary Business Group (UBG) (if no Michigan sales, enter zero)....... 9a. b. Proportionate Michigan sales from unitary Flow-Through Entities (FTEs) (include Form 4900)................ 9b. c. Michigan sales. Add lines 9a and 9b.......................................................................................................... 9c. d. Total sales of the corporation/UBG............................................................................................................. 9d. e. Proportionate total sales from unitary FTEs (include Form 4900)................................................................ 9e. f. Total sales. Add lines 9d and 9e..................................
Extracted from PDF file 2018-michigan-form-5014.pdf, last modified February 2019

More about the Michigan Form 5014 Corporate Income Tax

We last updated the Flow-Through Withholding Booklet in March 2019, and the latest form we have available is for tax year 2018. 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:

TaxFormFinder has an additional 97 Michigan income tax forms that you may need, plus all federal income tax forms.

Form Code Form Name
Form MI W-4P Withholding Certificate for Michigan Pension or Annuity Payments
Form 4884 Pension Schedule
Form 4567 Business Tax Annual Return
Form 4884 Worksheet Form 4884 Section D Worksheet
Form 4642 Voluntary Contributions Schedule

Download all MI tax forms View all 98 Michigan Income Tax Forms


Form Sources:

Michigan usually releases forms for the current tax year between January and April. We last updated Michigan Form 5014 from the Department of Treasury in March 2019.

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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 5014

We have a total of five past-year versions of Form 5014 in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:


Form 5014, Flow-Through Withholding Reconciliation Booklet 2012 Form 5014

Form 5014, Flow-Through Withholding Reconciliation Booklet


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