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Actual Quarterly Tax. If a taxpayer computes quarterly tax

If filing monthly using Form 160, monthly payments may

due based on the actual tax base for each quarter, complete

be filed on the 20th day of the month. If filing quarterly via

Part 4 first, then bring the tax from line 70 of the Annualization

Form 160, payment for MBT is due on the 15th. For example,

Worksheet to line 4. See Part 4 instructions for taxpayers filing

a calendar year taxpayer may file monthly MBT estimated

a return other than Form 4567. The total of the four computed

tax payments using Form 160 on February 20, March 20,

and April 20 rather than a single quarterly payment on April

amounts cannot be less than line 2.

15 provided the combined estimated tax payments for those

Line 5: Complete column A only. Enter the amount of prior

months are calculated using the instructions provided with the

year overpayment credited to the current tax year estimates.

form.

Line 6: Amount Paid.

For taxpayers electing to make monthly remittances by EFT

• Column A: Enter estimated payments made by the due

where the requirement to file a paper Form 160 has been waived,

date for the first quarterly return. Also enter in column A

MBT estimates can be made by the 20th day of the month

the total Flow-Through Withholding payments from line 62

following the month’s end. The estimated MBT for the quarter

of the MBT Annual Return (Form 4567), line 35 of Form

must also reasonably approximate the liability for the quarter.

4590, or line 50 of Form 4588. Also in column A, enter the

NOTE: A debit transaction will be ineligible for EFT if

total refundable credits from line 23 of the MBT Refundable

the bank account used for the electronic debit is funded or

Credits (Form 4574) or line 5 of the Miscellaneous Credits

otherwise associated with a foreign account to the extent that

for Insurance Companies (Form 4596).

the payment transaction would qualify as an International ACH

• Column B: Enter payments made after the due date in

Transaction (IAT) under NACHA Rules. Contact your financial

column A and by the due date in column B.

institution for questions about the status of your account.

• Column C: Enter payments made after the due date in

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

4730 for alternate payment methods.

column B and by the due date in column C.

• Column D: Enter payments made after the due date in

PART 4: ANNUALIZATION WORKSHEET FOR

column C and by the due date in column D.

MODIFIED GROSS RECEIPTS AND BUSINESS

If quarterly payments are made after the due date, penalty and

INCOME TAXES

interest will apply until the payment is received. If less than

Standard taxpayers may use the Annualization Worksheet to

full payment is made with a late filing, the taxpayer will need

calculate and report the amount of estimates due when income

to compute multiple penalty and interest calculations for each

is not evenly distributed throughout the tax year.

column. Attach a separate schedule if necessary.

If filing Form 4588, or Form 4590, submit a schedule showing

PART 2: FIGURING INTEREST

the entity’s computations for each quarter. Enter the total

Compute the interest due for both non-filing and underpayment

mounts on line 64 and follow the instructions for lines 65

of the required estimated tax in this section. Follow the

through 70.

instructions for each line, as interest is calculated separately

Each column represents a quarterly three-month filing period.

for each quarter and the interest rate might not be the same for

each quarter.

The Annualization Worksheet essentially leads filers through

the steps required to calculate the actual MBT due for the

Line 15: Enter the due date of the next quarter or the date the

tax year to date. The net tax liability is then annualized and

tax was paid, whichever is earlier. In column D, enter the earlier

multiplied by the percentage of estimates required for that

of the due date for the annual return or the date the tax was paid.

quarter.

An approved extension does not change the due date of the

annual return (column D) for this computation.

Line 42: If not subject to apportionment, enter 100 percent.

Line 53: Deduct any available MBT business loss incurred

PART 3: FIGURING PENALTY

after December 31, 2007. Enter as a positive number.

Compute the penalty due for both non-filing and underpayment

of the required estimated tax in this section. Follow the

Business loss means a negative business income tax base, after

instructions for each line, as the penalty and interest is

apportionment, if applicable.

calculated separately for each quarter and the penalty percentage

NOTE: MBT business loss carryforward is not the same as

and interest rate might not be the same for each quarter.

the federal net operating loss carryforward or carryback.

Avoiding Penalty and Interest Under MBT

It also is not the same as the Single Business Tax business

If estimated MBT liability for the year (including surcharge) is

loss carryforward, which was partially allowed against the

over $800, a taxpayer must file estimated quarterly returns and

Modified Gross Receipts tax base only for tax years ending

in 2008. It is also not the same as a Corporate Income Tax

payments. The taxpayer may make payments with any of the

(CIT) business loss carryforward. Neither a SBT business loss

following:

• CIT Quarterly Return (Form 4913) or

carryforward nor a CIT business loss carryforward may be

entered on this line or applied against the MBT tax base.

• Combined Return for Michigan Taxes (Form 160) (if

registered for SUW Taxes), or

Line 58: Multiply line 57 by 21.99 percent (0.2199). The

surcharge for the year should not exceed $6,000,000.

• Electronic Funds Transfer (EFT).

126

Form 4582 - Michigan Business Tax Penalty And Interest Computation For Underpaid Estimated Tax - 2013 Page 4

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