Form 807 Draft - Michigan Composite Individual Income Tax Return

2007 807, Page 3

Instructions for Form 807, Michigan Composite Individual Income Tax Return

GENERAL INSTRUCTIONS

• Two schedules (one for participants

Requesting an extension

and one for nonparticipants) listing each

Who may file a return

The firm may request an extension of time

partner’s, shareholder’s or member's

to file by sending payment of the

A flow-through entity, defined as

name, address, SSN and respective share

estimated annual liability to Treasury with

partnerships, S corporations, limited

of Michigan income and/or loss. If the

a copy of an approved federal extension.

partnerships, limited liability companies,

participating member is another flow-

Any extension allowed by the Internal

or limited liability partnerships, that does

through entity, the schedule must

Revenue Service for filing the firm’s

business in Michigan and has two or more

include the entity’s name, address,

federal return automatically extends the

nonresident partners, shareholders or

FEIN, and share of Michigan-sourced

due date of the composite return to the

members (participants). The entity (firm)

income, as well as a list of the names,

same extended due date.

and participants must agree to comply with

addresses, SSNs and ownership

the Michigan Department of Treasury

If the firm does not apply for a federal

percentages of that entity’s nonresident

(Treasury) rules described below.

extension, request an Application for

partners or shareholders.

Extension of Time to File Michigan Tax

Participation Requirements

• A statement signed by an authorized

Returns (Form 4). When completing the

A member may not participate in this

officer or general partner certifying that

extension form, check “Fiduciary Tax” in

composite return in any of the following cases:

each participant has been informed of

box 1, use the firm’s name and Federal

• If the member is claiming a city income

the terms and conditions of this

Employer Identification Number (FEIN)

tax credit, public contribution credit,

program.

and write “composite return” on the form.

community foundation credit, homeless

Follow these special instructions to make

shelter/food bank credit, Michigan Historic

LINE-BY-LINE INSTRUCTIONS

sure your account is credited properly.

Preservation Tax Credit, college tuition

Lines not listed are explained on the form.

Payment of the estimated annual liability

credit, or vehicle donation credit.

must be made with the extension

Line 10: Enter the apportionment

• If he or she was a Michigan resident

application. When you file your composite

percentage from Form MI-1040H. The

(full-year or part-year).

return, attach a copy of your extension

MI-1040H apportionment percentage is

• If he or she wishes to claim more than

application to it.

NOT weighted and the property factors

one Michigan exemption.

are based on property owned or rented

Mailing refunds, assessments and

Due date of return

and placed in service. See MI-1040H

correspondence

The composite return for any tax periods

instructions for income tax nexus

By signing the Michigan Composite Indi-

ending in 2007 is due April 15, 2008. The

standards. DO NOT use the Single

vidual Income Tax Return (Form 807), the

returns for any periods ending in 2008

Business Tax apportionment percentage

signing partner or officer declares that the

will be due April 15, 2009.

from Form C-8000H.

firm has power of attorney from each par-

If the firm cannot file by the due date, a

Line 13: The amount on this line should

ticipant to file a composite return on his

request for an extension can be filed

equal the total of lines 14, 15 and 16.

or her behalf. Treasury will mail refund

before the original due date. See

checks, assessments and all correspon-

Line 21: Multiply the amount on line 20

“Requesting an Extension” on this page.

dence to the firm at the address indicated

by 4.01 percent (.0401).

Withholding tax payments

on the return. The firm must agree to be

Enter the amount of

Line 23:

Composite filers are required to make

responsible for the payment of any addi-

withholding tax payments made on

withholding tax payments on behalf of all

tional tax, interest and penalties as finally

behalf of participating members.

nonresident members (both participating

determined. Issues involving the tax

Flow-Through Entities. Flow-through

and nonparticipating). The payment of

liability reported on a composite return

entities are required to withhold

withholding is due quarterly on April 20,

will be resolved with the firm. In unusual

Michigan income tax on the taxable

July 20, and October 20 of the taxable

circumstances, the department may contact

income available for distribution to

year and January 20 of the succeeding

the participants.

nonresident members.

year. The payment of withholding taxes

Attachments

The amount of withholding is calculated

is remitted on the payment voucher Form

Attach the following items to the

and remitted on a quarterly basis by

160, Combined Return for Michigan

composite return:

multiplying the share of taxable income

Taxes. If you choose to have the

• A copy of pages 1, 2 and 3 of the

allocable to each member, adjusted for

overpayment from the composite return

U.S. 1065 or U.S. 1120S.

the allowable exemption amount for a

transferred to your withholding account,

• A

quarter, times the income tax rate.

Michigan

Schedule

you still have the obligation to file the

Apportionment (Form MI-1040H).

A flow-through entity is also required to

quarterly returns. If the full liability has

withhold Michigan income tax when one

• All required Forms 4119 (formerly

been met, you must file the returns with

or more of the entity’s members is a

MI-NR-K1), Statement of Michigan

"0" tax due.

nonresident flow-through entity. The

Income Tax Withheld for Nonresidents

flow-through entity in Michigan shall

from Flow-Through Entities for each

withhold Michigan income tax from any

member of the composite return.

Form 807 Draft - Michigan Composite Individual Income Tax Return - 2007 Page 3

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