Instructions For Form 4913 - Michigan Corporate Income Tax (Cit) Quarterly Return - 2013

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Michigan Department of Treasury
4913 (Rev. 11-12)
Instructions for Form 4913
2013 Michigan Corporate Income Tax (CIT) Quarterly Return
NOTE: If the taxpayer has certified credits AND is electing
CIT and the Michigan Business Tax
or has elected to file under MBT, and the preceding year’s
tax liability under the MBT Act, including surcharge, if
All business taxpayers, regardless of business type, may use
Form 4913 to make their required estimated tax payments for
applicable, was $20,000 or less, the taxpayer can submit four
the CIT. Follow general instructions for all business types and
equal installments, the sum of which equals the immediately
specific instructions as identified for C Corporations, Financial
preceding tax year’s tax liability.
Institutions, and Insurance Companies.
Special Instructions for Unitary Business Groups
NOTE: Under the rules of Public Act 39 of 2011, some
taxpayers may continue to file Michigan Business Tax (MBT)
Under the CIT statute, the term “taxpayer” can include a
and will use Form 4913 to pay their estimates. MBT filers
C Corporation, insurance company, financial institution, or
should use the instructions for the 2011 MBT Quarterly Return
Unitary Business Group (UBG). A UBG is a group of United
(Form 4548) online at
States persons, other than a foreign operating entity, one of
which owns or controls (directly or indirectly) more than 50
Under PA 39 of 2011, the MBT will be repealed when the last
certified credit or carryforward based on that credit is claimed.
percent of the ownership interests with voting or comparable
Taxpayers may choose to continue to file under the MBT to
rights of the other United States persons and that has business
keep certain certified credits.
activities resulting in a flow of value between or among persons
in the group, or has business activities that are integrated
Estimated payments must be filed using Form 4913, regardless
with, are dependent upon, or contribute to each other. All CIT
of which type of annual tax return will be filed. Any payments
estimated tax payments for a UBG should be made by the
applied to CIT will be credited properly to MBT should an
Designated Member.
MBT annual return be filed.
A CIT return is due if the taxpayer’s gross receipts before
intercompany eliminations are $350,000 or greater for the tax
CIT Estimated Tax Payments
year (annualized if a short period). For more information on
The CIT consists of a franchise tax for financial institutions,
the control and relationship tests for UBGs, see the Revenue
Administrative Bulletins on the Michigan Department of
a premiums tax for insurance companies, and an income tax
for C Corporations and entities taxed as C Corporations for
Treasury (Treasury) Web site at
federal income tax purposes.
Click on the “Reference Library” link on the left side of the
page.
Taxpayers with an annual combined CIT liability reasonably
expected to exceed $800 must make quarterly estimated tax
When to File CIT Quarterly Tax Returns
payments. If the tax year was less than 12 months (e.g., the
business was opened or closed during the year), annualize the
For a calendar year taxpayer, quarterly returns are due the 15th
tax to see if estimates must be filed.
day of April, July, and October of the taxable year, and January
of the following year. For a fiscal year taxpayer, quarterly
The sum of estimated tax payments must equal at least
returns are due the 15th day of the first month following the
85 percent of total liability and the amount of each payment
end of the quarter. For any tax year that includes an estimated
must reasonably approximate the tax liability incurred during
tax payment period of less than three months, the quarterly
the period.
return for that period is due on the 15th day of the month
immediately following the final month of the estimated tax
If the preceding year’s tax liability was $20,000 or less, the
taxpayer can submit four equal installments, the sum of which
payment period.
equals the immediately preceding tax year’s CIT liability.
NOTE: Insurance companies must file on a calendar year basis.
(“Four equal installments” describes the minimum pace of
payments that will satisfy this safe harbor. Payments at a more
How Much to Pay
accelerated pace also will qualify.) If the prior tax year was
less than 12 months, annualize the prior year’s tax liability
C Corporations and Financial Institutions. Compute
quarterly estimated tax payments for CIT based on the tax
for purposes of both the $20,000 ceiling and calculating
liability for the period.
the quarterly payments due under this method. Reliance on
the prior year’s tax liability as a means to avoid interest and
Insurance Companies. Compute quarterly estimated tax
penalty charges is only allowed if you had business activity in
payments on the greater of the amount of tax imposed under
Michigan in that prior year. In addition, if your business was
MCL 206.635-643 (CIT) or MCL 500.476a (Retaliatory tax).
not in existence in the preceding year, no safe harbor exists.
All Taxpayers. Penalty and interest for underpaid estimated
CIT estimated tax payments are not required for taxpayers with
tax payments will not be charged if payments are made on
a short year of less than four calendar months.

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