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4913, Page 3

A financial institution is defined as:

information taxpayers may find helpful in determining their

estimated tax liability.

• A bank holding company, a national bank, a state chartered

bank, a state chartered savings bank, a federally chartered

Using Personalized Estimate Returns

savings association, or a federally chartered Farm Credit

System institution.

If you previously made estimated returns, Treasury will send

• Any entity, other than an insurance company subject to the

you personalized estimate returns. Subsequently, Treasury

tax imposed under Chapter 12 of the CIT Act, who is directly

will continue to send them to you if you make estimated tax

or indirectly owned by an entity described in the preceding

payments.

bulleted item and is a member of the UBG.

• File the original returns and keep copies for your file. (The

• A UBG made up of the entities described above.

personalized returns are read by an optical scanner which can

process only these original returns.)

The tax base of a financial institution is the financial

institution’s net capital, which is equity capital, as computed in

• Use the personalized returns whether you fill them out

accordance with generally accepted accounting principles, with

yourself or get help from a tax preparer.

certain adjustments. An addition is required for any amount in

• Personalized returns shorten the processing time of your

excess of 125 percent of the minimum regulatory capitalization

payment and reduce the chance of an error in your account.

requirements of an insurance company subsidiary. (The

amount capitalized would be carried on the books of the

• Do not use personalized returns if information on the

insurance company subsidiary as an asset.) Deductions are

return is incorrect and DO NOT USE OTHER TAXPAYERS’

RETURNS OR PHOTOCOPY THEIR FORMS. If you do,

allowed for the average daily book value of United States and

State of Michigan obligations.

your payments could be applied to the wrong account.

NOTE: If a financial institution does not maintain its books

• If you use software to prepare your return, the software may

create a personalized return for you.

and records in accordance with generally accepted accounting

principles, net capital may be computed in accordance with the

If you lose a return or have not made estimated tax payments

books and records used by the financial institution, so long as

before, visit to obtain a form.

the method fairly reflects the financial institution’s net capital

for purposes of CIT.

Combined Sales, Use, Withholding, and

Net capital is determined by averaging the financial

Corporate Income Tax Payments

institution’s net capital as of the close of the current tax year

You may make CIT monthly estimated tax payments

with the preceding four tax years. This calculation is modified

with your Sales, Use, and Withholding Taxes return.

if a financial institution has been in existence for less than five

If you choose this convenient option, you only need to

tax years. The statute also provides additional guidance for

file one form and write one check for all the taxes you

mergers and acquisitions.

pay. If filing monthly using the Combined Return for

The tax base of financial institutions whose business activities

Michigan Taxes (Form 160), monthly payments may

are subject to tax both within and outside Michigan is

be filed by the 20th day of the following month. For

apportioned by the gross business factor, utilizing rules set in

example, a calendar year taxpayer may file monthly CIT

statute. Gross business means the sum of the following:

estimated tax payments using Form 160 on February 20,

March 20, and April 20 rather than a single quarterly payment

• Fees, commissions, or other compensation for financial

on April 15 provided the combined estimated tax payments

services.

for those months are calculated using the instructions

• Net gains, not less than zero, from the sale of loans and

provided with the form. For taxpayers electing to make

other intangibles.

monthly remittances by Electronic Funds Transfer (EFT)

• Net gains, not less than zero, from trading in stocks, bonds,

where the requirement to file a paper Form 160 has been

or other securities.

waived, CIT estimated tax payments remain due by the 20th

day of the month following the month’s end. The estimated

• Interest charged to customers for carrying debit balances of

CIT for the quarter must also reasonably approximate the

margin accounts.

liability for the quarter.

• Interest and dividends received.

NOTE: A debit transaction will be ineligible for EFT if

• Any other gross proceeds resulting from the operation as a

the bank account used for the electronic debit is funded or

financial institution.

otherwise associated with a foreign account to the extent that

the payment transaction would qualify as an International ACH

All Taxpayers

Transaction (IAT) under NACHA Rules. Contact your financial

Additional details regarding the calculation of the tax may be

institution for questions about the status of your account.

Contact Treasury’s Electronic Funds Transfer Unit at (517) 636-

found in the forms and instructions provided on the Treasury

Web site at . The Web site contains

6925 for alternate payment methods.

Instructions For Form 4913 - Michigan Corporate Income Tax (Cit) Quarterly Return - 2013 Page 3

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