Form 807 Draft - Michigan Composite Individual Income Tax Return - 2009 Page 3
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42009 807, Page 3
Instructions for Form 807, Michigan Composite Individual Income Tax Return
Payment of the estimated annual liability must be made
Filing a Return
with the extension application. When you file your composite
A flow-through entity, defined as partnerships, S corporations,
return, attach a copy of your extension application to it.
limited partnerships, limited liability companies, or limited
Mailing Refunds, Assessments and
liability partnerships, that does
business in Michigan and
Correspondence
has two or more nonresident partners, shareholders or other
types of members may file this return. The entity (firm) and
By signing the Michigan Composite Individual Income Tax
participating members must agree to comply with the Michigan
Return (Form 807), the signing partner or officer declares that
Department of Treasury (Treasury) rules described below.
the firm has power of attorney from each participant to file
a composite return on his or her behalf. Treasury will mail
Participation Requirements
refund checks, assessments and all correspondence to the firm
A member may not participate in this composite return in any
at the address indicated on the return. The firm must agree to
of the following cases:
be responsible for the payment of any additional tax, interest
•
If member is claiming a city income tax credit, public
and penalties as finally determined. Issues involving the tax
contribution credit, or any other nonrefundable credits.
liability reported on a composite return will be resolved with
•
If member was a Michigan resident (full-year or part-year).
the firm. In unusual circumstances, Treasury may contact the
participants.
•
If member wishes to claim more than one Michigan
exemption.
Attachments
Due Date of Return
Attach the following items to the composite return:
The composite return for any tax periods ending in 2009 is due
Form 1065 or U.S. Form
•
A copy of pages 1 - 4 of the U.S.
April 15, 2010. The returns for any periods ending in 2010 will
1120S.
be due April 15, 2011.
Michigan Schedule of Apportionment (Form MI-1040H).
•
A
If the firm cannot file by the due date, a request for an extension
•
All required Forms 4119,
Statement of Michigan Income Tax
can be filed before the original due date. See “Requesting an
Withheld for Nonresidents from Flow-Through Entities for each
Extension” on this page.
participating member of the composite return.
Withholding Tax Payments
•
Two schedules (one for participants and one for
nonparticipants) listing each partner’s, shareholder’s or
Composite filers are required to make withholding tax payments
member's name, address, Social Security Number (SSN) and
on behalf of all nonresident members (both participating
respective share of Michigan income and/or loss. If the
and nonparticipating). The payment of withholding is due
participating member is another flow-through entity, the
quarterly on April 20, July 20, and October 20 of the taxable
schedule must include the entity’s name, address, Federal
year and January 20 of the succeeding year. The payment of
Employer Identification Number (FEIN), and share of
withholding taxes is remitted on the payment voucher Form
Michigan-sourced income, as well as a list of the names,
160, Combined Return for Michigan Taxes. If you choose to
addresses, SSNs and ownership percentages of that entity’s
have the overpayment from the composite return transferred to
nonresident partners or shareholders.
your withholding account, you still have the obligation to file
• A statement signed by an authorized officer or general
the quarterly returns. If the full liability has been met, you must
partner certifying that each participant has been informed of
file the returns with "0" tax due. A flow-through entity which
the terms and conditions of this program.
paid in the immediately preceding calendar year an average
of $40,000 or more per month in income tax withholding on
Line-by-Line Instructions
the combined share of income available for distribution and
employee wages shall deposit the Michigan tax withheld at
Lines not listed are explained on the form.
the same time and in the same manner as deposits of federal
Line 10: Enter the apportionment percentage from Form
withholding taxes. This will require an electronic funds transfer
MI-1040H. The MI-1040H apportionment percentage is NOT
in accordance with the time frames provided in the Internal
weighted and the property factors are based on property owned
Revenue Code (IRC) and may be due as soon as the day after
or rented and placed in service. See MI-1040H instructions for
withholding.
income tax nexus standards.
Requesting an Extension
Line 13: The amount on this line should equal the total of lines
14, 15 and 16.
The firm may request an extension of time to file by sending
Line 21: Multiply the amount on line 20 by 4.35 percent
payment of the estimated annual liability to Treasury with a
(.0435).
copy of an approved federal extension. Any extension allowed
by the Internal Revenue Service for filing the firm’s federal
Line 23: Enter the amount of withholding tax payments made
return automatically extends the due date of the composite
on behalf of participating members.
return to the same extended due date. An extension of time to
Flow-Through Entities. Flow-through entities are required to
file is NOT an extension of time to pay.
withhold Michigan income tax on the taxable income available
If the firm does not apply for a federal extension, request
for distribution to nonresident members.
an Application for Extension of Time to File Michigan Tax
The amount of withholding is calculated and remitted on a
Returns (Form 4). When completing the extension form, check
quarterly basis by multiplying the share of taxable income
“Fiduciary Tax (includes Composite Filers)” in box 1, and use
allocable to each member, adjusted for the allowable exemption
the firm’s name and Federal Employer Identification Number
amount for a quarter, times the income tax rate.
(FEIN). Follow these special instructions to make sure your
account is credited properly.
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