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Instructions for Form 4582, Michigan Business Tax (MBT)

Penalty and Interest Computation for Underpaid Estimated Tax

in Michigan in that prior year. A return must have been filed

Purpose

to establish the tax liability for that prior year, even if gross

To compute penalty and interest for underpaying, late filing,

receipts in the prior year were less than $350,000. In addition,

or late payment of quarterly estimates. If a taxpayer prefers

if your business was not in existence in the preceding year, no

not to file this form, the Department of Treasury (Treasury)

safe harbor exists. In such a case, estimates must be based on

will compute any applicable penalty and interest and bill the

the MBT liability for the current year.

taxpayer. Part 4 of this form also is used to determine and

• The taxpayer is a farmer, fisherman, or seafarer and files the

report the amount of estimates due when income is not evenly

MBT Annual Return (Form 4567) by March 1, or a tentative

distributed through the tax year.

annual return with payment by January 15, and the final

NOTE: Penalty and interest for late filing or late payment on

return on or before April 15.

the annual return is computed separately. See the “Computing

Annualizing

Penalty and Interest” section of the “General Information for

To annualize for a period of less than 12 moths, multiply each

Standard Taxpayers” in the MBT Forms and Instructions for

applicable amount by 12 and divide the result by the number

Standard Taxpayers (Form 4600).

of months the business operated or the person was a partner.

Estimated returns and payments are required from any

Generally, a business is considered in business for one month if

taxpayer that expects an annual MBT liability (including

the business operated for more than half the days of the month.

surcharge and Corporate Income Tax adjustment) of more than

If the business was in operation for less than a month it is

$800. Exceptions are listed below. If a taxpayer owes estimated

considered to have been in business for 1 month.

tax and the estimated return with full payment is not filed or

NOTE: For a taxpayer that calculates and pays estimated

is filed late, penalty is added at 5 percent of tax due, for the

payments for federal income tax purposes pursuant to section

first two months. Penalty increases by an additional 5 percent

6655(e) of the Internal Revenue Code, that taxpayer may use the

per month, or fraction thereof, after the second month, to a

same methodology as used to calculate the annualized income

maximum of 25 percent. If the taxpayer made no estimated tax

installment or the adjusted seasonal installment, whichever is

payments and none of the exceptions below apply, compute the

used as the basis for the federal estimated payment, to calculate

interest due (Part 2) and the penalty for non-filing (Part 3).

the estimated payments required each quarter under this section.

Retain the calculation for your records.

Exceptions

If any of the conditions listed below apply, do not pay penalty

Line-by-Line Instructions

and interest. If a business operated less than 12 months in the

Lines not listed are explained on the form.

current or preceding year, annualize figures (as applicable) to

determine if the exceptions apply. See Form 4600 for complete

Do not enter data in boxes filled with Xs.

annualizing instructions.

Dates must be entered in MM-DD-YYYY format.

• The annual tax (including surcharge) on the current annual

Name and Account Number: Enter name and account number

return is $800 or less.

as reported on page 1 of the applicable MBT annual return

• The return is for a taxable period of less than four calendar

(either Form 4567, the MBT Annual Return for Financial

Institutions (Form 4590), or the Insurance Company Annual

months.

• The estimated quarterly payments reasonably approximate

Return for Michigan Business and Retaliatory Taxes (Form

4588)).

the tax liability incurred for each quarter and the total of all

payments equals at least 85 percent of the annual liability.

PART 1: ESTIMATED TAX REQUIRED

Complete the Annualization Worksheet (Part 4) if the

Line 2: Enter 85 percent of the annual tax amount from line 1.

liability is not evenly distributed through the tax year.

Line 3: Enter the due date for each quarterly return. For

• The sum of estimated payments equals the annual tax on the

calendar year filers these dates are April 15, July 15, October

preceding year’s return, providing these payments were made

15, and January 15. For fiscal year filers, these dates are the

in four timely equal payments, or 12, if paid on Sales, Use,

day of the 4

, 7

, 10

and 13

months after the start of

and Withholding (SUW) returns, and the preceding year’s tax

the fiscal year. For any tax year that includes an estimated tax

under the MBT Act, including surcharge, if applicable, was

payment period of less than three months, the quarterly return

$20,000 or less. If the prior year’s tax liability was reported for

for that period is due on the 15th day of the month immediately

a period less than 12 months, this amount must be annualized

following the final month of the estimated tax payment period.

for purposes of both the $20,000 ceiling and calculating the

Line 4: Divide the amount of the estimated tax required for

quarterly payments due under this method. See “Filing if Tax

the year on line 4 by four and enter this as estimated tax for

Year Is Less Than 12 Months” in the “General Information”

each quarter. If the business operated less than 12 months,

section of Form 4600 for more information. Reliance on

divide by the number of quarterly returns required and enter

the prior year’s tax liability as a means to avoid interest and

this as the estimated tax for each quarter.

penalty charges is only allowed if you had business activity

125

Form 4582 - Michigan Business Tax Penalty And Interest Computation For Underpaid Estimated Tax - 2013 Page 3

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