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Instructions for Form 4582, Michigan Business Tax (MBT)

Penalty and Interest Computation for Underpaid Estimated Tax

Michigan in that prior year. A return must be filed to establish

Purpose

the tax liability for that prior year, even if gross receipts in the

To compute penalty and interest for underpaying, late filing,

prior year were less than $350,000. In addition, if your business

was not in existence in the preceding year, no safe harbor

or late payment of quarterly estimates. If a taxpayer prefers

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

exists. In such a case, estimates must be based on the MBT

will compute any applicable penalty and interest and bill the

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

report the amount of estimates due when income is not evenly

the 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 return

on or before April 15.

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

the annual return is computed separately. See the “Computing

Note: For a taxpayer that calculates and pays estimated

Penalty and Interest” section of the “General Information for

payments for federal income tax purposes pursuant to section

Standard Taxpayers” in the MBT Forms and Instructions for

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

Standard Taxpayers (Form 4600).

same methodology as used to calculate the annualized income

installment or the adjusted seasonal installment, whichever is

Estimated returns and payments are required from any taxpayer

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

that expects an annual MBT liability (including surcharge

the estimated payments required each quarter under this section.

and Corporate Income Tax adjustment) of more than $800.

Retain the calculation for your records.

Exceptions are listed below. If a taxpayer owes estimated tax

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

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

Line-by-Line Instructions

months. Penalty increases by an additional 5 percent per month,

Lines not listed are explained on the form.

or fraction thereof, after the second month, to a maximum of 25

percent. If the taxpayer made no estimated tax payments and

Do not enter data in boxes filled with Xs.

none of the exceptions below apply, compute the interest due

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

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

Name and Account Number: Enter name and account number

as reported on page 1 of the applicable MBT annual return

Exceptions

(either Form 4567, the MBT Annual Return for Financial

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

Institutions (Form 4590), or the Insurance Company Annual

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

Return for Michigan Business and Retaliatory Taxes (Form

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

4588)).

determine if the exceptions apply. See Form 4600 for complete

PART 1: ESTIMATED TAX REQUIRED

annualizing instructions.

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

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

return is $800 or less.

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

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

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

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

months.

day of the 4

, 10

and 13

months after the start of

, 7

• The estimated quarterly payments reasonably approximate

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

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

payment period of less than three months, the quarterly return

payments equals at least 85 percent of the annual liability.

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

Complete the Annualization Worksheet (Part 4) if the liability

following the final month of the estimated tax payment period.

is not evenly distributed through the tax year.

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

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

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

preceding year’s return, providing these payments were made

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

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

divide by the number of quarterly returns required and enter

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

this as the estimated tax for each quarter.

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

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

Actual Quarterly tax. If a taxpayer computes quarterly tax

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

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

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

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

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

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

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

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

section of Form 4600 for more information. Reliance on

amounts cannot be less than line 2.

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

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

penalty charges is only allowed if you had business activity in

127

Form 4582 - Business Tax Penalty And Interest Computation For Underpaid Estimated Tax - 2012 Page 3

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