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Instructions for Form 4588

Insurance Company Annual Return for Michigan Business and Retaliatory Taxes

Line 1: Enter the complete address and, if other than the

Purpose

United States, enter the two-digit abbreviation for the country

code. See the list of country codes in the Michigan Business

To calculate the tax liability and to claim credits for insurance

companies for both Michigan Business and Retaliatory Taxes.

Tax (MBT) Forms and Instructions for Insurance Companies

(Form 4592).

NOTE: Beginning January 1, 2012, only those taxpayers with

a certificated credit, which is awarded but not yet fully claimed

Correspondence about and any refund from this return will

or utilized, may elect to be MBT taxpayers. If a taxpayer files

be sent to the address used here. Check the new address box if

the address used on this line has changed from last filing. The

an MBT return and claims a certificated credit, the taxpayer

makes the election to file and pay under the MBT until the

taxpayer’s primary address in Department of Treasury (Treasury)

certificated credit and any carryforward of that credit are

files, identified as the legal address and used for all purposes

exhausted.

other than refund and correspondence on a specific MBT return,

will not change unless the taxpayer files a Notice of Change or

General Instructions

Discontinuance (Form 163). Exception: If mail sent to the legal

MBT Liability: Beginning January 1, 2012, a taxpayer

address has been returned to Treasury by the United States Postal

calculates MBT liability as the greater of MBT liability after

Service, Treasury will update the taxpayer’s legal address with

all credits, deductions, and exemptions or hypothetical CIT

the address used on this line in the most recent MBT return.

liability minus deductions and credits available under that act

Line 2: Use the taxpayer’s Federal Employer Identification

and minus certificated credits allowed under the MBT. This

Number (FEIN) or the Michigan Treasury (TR) assigned

calculation of liability requires a taxpayer to calculate the

number. Be sure to use the same account number on all forms.

premiums tax base and apply available MBT credits, including

certificated credits, deductions, and exemptions available

the

taxpayer

does

not

have

FEIN

under the MBT. Then, the taxpayer will calculate the CIT

number,

the

taxpayer

MUST

before

filing

comparison on the Schedule of Corporate Income Tax Liability

this form. They are encouraged to register online at

for an Insurance Filer (Form 4974). A taxpayer is permitted to

The Web site provides

reduce hypothetical CIT liability by all deductions and credits

information on obtaining an FEIN, which is required to submit

which would be allowed under that tax as well as the amount

taxes through e-file. Taxpayers usually can obtain an FEIN from

of certificated credit allowed under the MBT. The amount

the IRS within 48 hours. Taxpayers registering with the State

of certificated credit allowed under the MBT is the amount

online usually receive an account number within seven days.

of nonrefundable credit needed to offset MBT liability or the

Returns received without a registered account number will not

entire amount of a refundable credit.

be processed until such time as a number is provided.

If the taxpayer’s hypothetical CIT liability would be higher

Line 3: Check this box if the company is a foreign insurer.

than its MBT liability, the taxpayer will add the difference to

Alien insurers are considered foreign insurers, unless their port

MBT liability on line 28 of this form (4588). This is the CIT

of entry is Michigan, in which case the company is considered

adjustment. If the result of both steps of the calculation is a

domestic for the filing of this return.

negative number, the taxpayer will receive a refund of the lower

negative; but a nonrefundable credit cannot be used to reduce

Line 4: Alien insurers, enter the two-letter postal code for the

liability below zero. Remaining nonrefundable certificated credit

U.S. state that is your port of entry.

may be carried forward to succeeding tax years.

Line 5: Enter all gross direct premiums written on property or

Amended Returns: To amend a current or prior year annual

risk located or residing in Michigan.

return, complete the Form 4588 that is applicable for that year,

Line 6: Enter premiums on policies not taken to the extent

check the box in the upper-right corner of the return, and attach

these premiums were included in line 5.

a separate sheet explaining the reason for the changes. Include an

amended federal return or a signed and dated Internal Revenue

Line 7: Enter returned premiums on canceled policies to the

Service (IRS) audit document. Include all schedules filed with

extent these premiums were included in line 5.

the original return, even if not amending that schedule. Enter the

Line 8: Enter receipts on sales of annuities to the extent these

figures on the amended return as they should be. Do not include

receipts were included in line 5.

a copy of the original return with your amended return. A

taxpayer may not amend to revoke the election to remain taxable

Line 9: Enter receipts on reinsurance premiums assumed to

under the MBT. Once the taxpayer makes a valid election to

the extent these receipts were included in line 5, and only if tax

claim a certificated credit, the taxpayer must remain in the MBT

was paid on the original premiums.

until the credit and any carryforward of that credit are exhausted.

Line 12: Disability insurance is insurance of any person

Line-by-Line Instructions

against bodily injury or death by accident, or against disability

on account of sickness or accident including also the granting

Lines not listed are explained on the form.

of specific hospital benefits and medical, surgical and sick-

Do not enter data in boxes filled with Xs.

care benefits to any person, family, or group, subject to such

Form 4588 - Insurance Company Annual Return For Michigan Business And Retaliatory Taxes - 2013 Page 3

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