Instructions For Form 807 - Composite Individual Income Tax Return (Page 2 of 4) in pdf

2016 807, Page 7

Signing Return/Correspondence

Reporting to Members

By signing Form 807, the signing partner or officer declares

An FTE filing Form 807 must report to each nonresident

that the filer has power of attorney from each participant to

member that participates in the composite filing the following

file a composite return on his or her behalf. Treasury will mail

information:

refund checks, assessments and all correspondence to the filing

• FEIN of the FTE

company at the address indicated on the return. The filing

company must agree to be responsible for the payment of any

• Tax year of the FTE

additional tax, interest and penalties as finally determined.

• T hat member’s distributive share of business income as well

Issues involving the tax liability reported on a composite

as other taxable income of the FTE that has been allocated

return will be resolved with the filing company. In unusual

or apportioned to Michigan. This will be the amount from

circumstances, Treasury may contact the participants.

Schedule A, Schedule of Participants, Column 1.

Attachments

• That member’s share of tax liability on the composite return

filed by the FTE (not the amount withheld on behalf of

Attach the following items to the composite return:

the member). The amount reported to a participant should

• A copy of the U.S. Form 1065 (5 pages) or

be the amount from Schedule A, Schedule of Participants,

U.S. Form 1120S (4 pages).

Column 2.

• A Michigan Schedule of Apportionment (Form MI-1040H).

• The FTE’s sales that have been sourced to Michigan, and the

Schedule

Participants

• Completed

FTE’s total sales everywhere.

and sub-schedules for participants that are other FTEs.

• T hat member’s share of the personal exemption claimed as

• Completed Schedule B, Schedule of Nonparticipants.

part of line 49 of the composite return.

• Completed Schedule C, Schedule of Michigan Resident

The FTE may use any method to report the necessary

Members.

information to its members so long as it conveys the

information listed above. Treasury recommends that the FTE

• A s tatement signed by an authorized officer or general

provide the information to its members as a supplemental

partner certifying that each participant has been informed of

attachment to the federal Schedule K-1, which will provide the

the terms and conditions of this program.

participant with the information necessary to file a MI-1040 if

• A copy of Form 4, if applicable.

the participant has other Michigan-sourced income.

Schedules

For more information on reporting requirements to nonresident

Schedule A, Schedule of Participants:

members, visit

Complete this schedule for two or more participating

Requesting an Extension

nonresident members. Do not enter withholding that has

been claimed on any other Michigan composite return or that

The filer may request an extension of time to file by sending

has been refunded on an Annual Flow-Through Withholding

payment of the estimated annual liability not satisfied

Reconciliation Return (Form 4918).

by withholding payments to Treasury with a copy of the

Application for Extension of Time to File Michigan Tax Returns

For each participating intermediate FTE included on

(Form 4). A separate Michigan extension must be filed even if

Schedule A, attach a separate sub-schedule identifying

the company files a federal extension. An extension of time to

the members of that intermediate FTE whose distributive

file is NOT an extension of time to pay.

shares are included on Schedule A. Each intermediate FTE

sub-schedule must include:

When completing the extension form, check “Fiduciary Tax

(includes Composite Filers)” in box 1, and use the company’s

• The intermediate FTE’s name and FEIN.

name and Federal Employer Identification Number (FEIN) to

• T he intermediate FTE’s members (nonresident individuals

ensure the payment is properly credited to the account.

and trusts) name, address, account number, distributive

When the composite return is filed, attach a copy of the

share of Michigan income, and share of withholding.

extension application.

If the FTE filing this return does not know the above

Amended Returns

information down to the ultimate members of an intermediate

FTE participant, then that intermediate FTE member may not

To amend a current or prior year annual return, complete the

participate in this composite filing.

Form 807 that is applicable for that year and write the word

Use additional copies of Schedule A as needed. Subtotal each

“AMENDED” across the top of the form. Include a statement

schedule and include a grand total of Columns 1, 2, and 3b

to explain the reason(s) for the change. Include all schedules

on the first page of the schedule. Carry the grand total of

filed with the original return even if not amending that schedule.

Column 1 to line 16. Column 2 should reconcile to line 21.

Enter the figures on the amended return as they should be.

Carry the grand total of line 3b to line 23.

Do not include a copy of the original return with the amended

Schedule B, Schedule of Nonparticipants: Complete this

return.

schedule for all members, other than Michigan residents,

who did not participate on Schedule A.

The income of

Instructions For Form 807 - Composite Individual Income Tax Return Page 2

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