Form 4590 - Business Tax Annual Return For Financial Institutions

Fiscal Year Filers: All 2011-2012 fiscal year taxpayers will

constitution or any federal statute, including the obligations

file a short-period return from January 1, 2012 to the end of

of any instrumentality or agency of the United States that are

their 2011-2012 fiscal year. Fiscal year financial institutions are

exempt from state or local taxation under the United States

required to use the annual method for a short period return.

constitution or any statute of the United States.

Under the annual method, the short period return will report

Line 17a: If this taxpayer owns a subsidiary that is an

data from the fiscal year prorated by a fraction. The numerator

authorized insurance company, enter the actual amount of the

of the fraction will be the number of months in the short

capital fund maintained within that subsidiary. This does not

period. The denominator will be the number of months in the

include a captive insurance company.

fiscal year (typically 12). The number of months used for the

numerator should correspond to the number of months reported

Line 17b: Enter the minimum capital fund amount required by

for the tax year on line 1.

regulations for that insurance subsidiary.

Line 23: If qualified to check box 8a and not part of a UBG,

PART 1: FRANCHISE TAX

The following tax base calculation involves a five-year average

enter the amount from line 22.

of net capital. Enter data from the current tax year and four

UBGs: Calculate the pro forma tax liability of all members not

most recent MBT tax years to complete the five-year table.

subject to the surcharge to determine the amount of tax to enter

For purposes of this table, treat a partial year as a full year. If

on this line. A copy of this calculation must be attached to the

the current and four preceding tax periods include any short

tax filing.

periods, the years printed in column headings for this part will

Line 27: Enter nonrefundable credits from the MBT

not apply accurately. For example, assuming no short periods for

federal purposes, a financial institution with a fiscal year end of

Nonrefundable Credits Summary (Form 4568), line 40. Note

that these credits have strict eligibility requirements, and only

August 31 would average net capital for the following tax year

the following are available to a financial institution:

ends (taking into account the transition between taxes): August

• SBT credit carryforwards (Single Business Tax (SBT) Credit

31, 2012, December 31, 2011, August 31, 2011, August 31, 2010,

August 31, 2009.

Carryforwards (Form 4569))

• Compensation Credit (claimed on the MBT Credits for

UBGs: Leave lines 11 through 19 blank, complete line 20 with

Compensation, Investment, and Research and Development

combined data from Form 4752, line 25, and proceed with the

(Form 4570))

rest of the lines on Form 4590.

• Renaissance Zone Credit (claimed on the MBT Renaissance

Part 1; Lines 11-14, Line 17a and Line 17b: Fiscal Year

Zone Credit Schedule (Form 4595))

Filers: See “Supplemental Instructions for Fiscal MBT Filers

• Individual or Family Development Account Credit (claimed

— Financial Institutions” in Form 4599.

on the MBT Miscellaneous Nonrefundable Credits (Form 4573))

Line 11: Enter equity capital as of the last day of the filing

• Brownfield Redevelopment Credit (calculated on the MBT

period, as computed in accordance with generally accepted

Election of Refund or Carryforward of Credits (Form 4584))

accounting principles. If the financial institution does not

• Historic Preservation Credit (calculated on Form 4584)

maintain its books and records in accordance with generally

• Film Infrastructure Credit (as assignee only)

accepted accounting principles, net capital must be computed

in accordance with the books and records used by the financial

Line 29: Recapture of certain credits is entered on MBT

institution, so long as the method fairly reflects the financial

Schedule of Recapture of Certain Business Tax Credits and

institution’s net capital for purposes of MBT. If the financial

Deductions (Form 4587). For a financial institution, these are the

institution owns a subsidiary that is an authorized insurance

Michigan Economic Growth Authority (MEGA) Employment

Tax Credit and Brownfield Redevelopment Credit. If the taxpayer

company, the equity capital of the insurance subsidiary is not

included in the financial institution’s equity capital. Attach

experienced recapture of either of these credits during the filing

supporting schedules.

period, complete Form 4587 and carry the result to this line.

UBGs: A member of a UBG of financial institutions will

PART 2: PAYMENTS, REFUNDABLE CREDITS,

eliminate its investment in another member of the same group.

AND TAX DUE

However, in order to reach net capital for the group, each

UBGs: On lines 33 through 39, enter combined data for all

member of a UBG of financial institutions must compute its

members included on this combined return.

tax base individually in accordance with GAAP. The rules

of GAAP do not permit negative equity capital for a financial

Line 33: Enter overpayment credited from prior MBT return.

institution.

Line 34: Enter total payments made with the MBT Quarterly

Line 13: Under MCL 208.1261(k), Michigan obligations means

Return (Form 4548), the MBT estimates paid with the

a bond, note, or other obligation issued by a governmental unit

Combined Return for Michigan Taxes (Form 160) or via

described in Section 3 of the Shared Credit Rating Act, Public

Electronic Funds Transfer (EFT). Include all payments made

toward the current filing period.

Act 227 of 1985, MCL 141.1053.

Line 14: Under MCL 208.1261(s), United States obligations

Line 35: Enter the total withholding payments made on your

behalf by flow-through entities. Include all withholding

means all obligations of the United States exempt from taxation

under 31 USC 3124(a) or exempt under the United States

payments made on returns that apply to the tax year included

Form 4590 - Business Tax Annual Return For Financial Institutions - 2012 Page 6

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