Instructions For Form 5462 - City Of Detroit Income Tax - Estates And Trusts

ADVERTISEMENT

Instructions for Form 5462
City of Detroit Income Tax — Estates and Trusts
Who must File?
penalty and Interest
Each estate with gross income of more than $600, each
If the fiduciary payment is late, Treasury will add a penalty of
simple trust (one that is required to distribute all of its income
1 percent of the tax due. Penalty will increase by an additional
currently) with gross income of more than $300, and all other
1 percent per month, or fraction thereof, up to a maximum of
trusts (complex trusts) with gross income of more than $100 of
25 percent of the tax due. If the fiduciary payment is late, add
Detroit taxable income who are required to file a U.S. Income
penalty and interest to the amount due. For interest rates for
Tax Return for Estates and Trusts (U.S. Form 1041), must file a
2017, visit or call 517-636-4486.
City of Detroit Income Tax — Estates and Trusts return (Form
Extensions
5462) and complete Schedule G. A business trust that files as
a corporation with the Internal Revenue Service and is “doing
An extension of time to file may be requested by completing
business” in Detroit must file a City of Detroit Corporate
and filing the Application for Extension of Time to File City
Income Tax Return (Form 5297).
Income Tax Estates and Trusts Return (Form 5463) sending
Treasury payment of the estimated tax liability. Treasury may
Taxable Income
grant a six-month extension for fiduciary returns. Treasury
The taxable income of the trust or estate will only include
does not send a notice of approval.
those kinds of income taxable to a nonresident. Detroit
An extension of time to file is not an extension of time to pay.
resident beneficiaries will report their portion of distributable
If the tax due is underestimated and the payment made with the
net income on their individual returns and should receive this
extension request is insufficient, interest is due on the unpaid
information from the fiduciary.
amount. Compute interest from April 15 (or the due date of the
Distributable and nondistributable income from the following
return) to the date the tax is paid. Interest is 1 percent above
sources is subject to tax:
prime rate and is adjusted on July 1 and January 1.
• All gross income that the descendant had a right to receive
When 5462 is filed, include the amount of tax that was paid
and that is not properly includible on the descendant’s final
with the extension request on line 22.
return, including compensation received as an employee for
Amended Return
work done or services performed in Detroit.
• Net profits of a business or profession based on business
To amend a return, check the box at the top of page one and
activity conducted in Detroit whether or not such business or
complete the entire return, using corrected data as necessary.
profession is located in Detroit.
Attach a statement explaining the reason for the amended
return. If a refund was issued with a previously filed return,
• Net profits from rental of real and tangible personal property
include the amount of that refund in the total on line 22.
located in Detroit.
• Gain on the sale or exchange of real and tangible personal
Include all forms and documents filed with the original return,
property located in Detroit.
even if not amending those items. Do not include a copy of the
previous return.
• Income from a partnership, estate or trust taxable under the
Detroit Income Tax Ordinance.
U.S. Form 1041 changes: Treasury must be notified of any
changes to the estate’s or trust’s U.S. Form 1041 if the items
Due Date
changed affect the Detroit liability. File an amended return
Returns are due on or before April 15, 2017. If the due date
within 180 days of the change and include payment of the tax
falls on a Saturday, Sunday or holiday, the due date is the next
due. If there was an overpayment of tax, file an amended return
business day.
to request a refund.
Keep a copy of the return and all supporting schedules for six
Line-by-Line Instructions
years.
Line numbers not listed are explained on the form.
Mail the completed return to:
Line 2: If not a calendar-year taxpayer, enter the beginning and
Michigan Department of Treasury
ending dates (MM-DD-YYYY) that correspond to the taxable
City Tax Administration
period included in this return.
PO Box 30813
Tax year means the calendar year, or the fiscal year ending
Lansing MI 48909
during the calendar year, on which the tax base of a taxpayer
If a tax due is reported on line 24, include a check or money
is computed. If a return is made for a part of a year, tax year
order payable to “State of Michigan - Detroit.” Write the FEIN
means the period for which the return is made. Generally, a
and “2016 Form 5462” on the check.
taxpayer’s tax year is for the same period as is covered by its
federal income tax return.

ADVERTISEMENT

00 votes

Related Articles

Related forms

Related Categories

Parent category: Financial
Go
Page of 3