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year overpayment credited to the current tax year estimates.

20 rather than a single quarterly payment on April 15 provided

the combined estimated tax payments for those months are

Line 6: Amount Paid.

calculated using the instructions provided with the form.

• Column A: Enter estimated payments made by the due

For taxpayers electing to make monthly remittances by EFT

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

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

total Flow-Through Withholding payments from line 62 of the

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

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

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

Return for Financial Institutions (Form 4590) or line 50 of the

must also reasonably approximate the liability for the quarter.

Insurance Company Annual Return for Michigan Business and

Retaliatory Taxes (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 for

otherwise associated with a foreign account to the extent that

Insurance Companies (Form 4596).

the payment transaction would qualify as an International ACH

Transaction (IAT) under NACHA Rules. Contact your financial

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

institution for questions about the status of your account.

column A and by the due date in column B.

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

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

4730 for alternate payment methods.

column B and by the due date in column C.

PART 4: ANNUALIZATION WORKSHEET FOR

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

column C and by the due date in column D.

MODIFIED GROSS RECEIPTS AND BUSINESS

INCOME TAXES

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

Standard taxpayers may use the Annualization Worksheet to

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

calculate and report the amount of estimates due when income

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

is not evenly distributed throughout the tax year.

to compute multiple penalty and interest calculations for each

column. Attach a separate schedule if necessary.

If filing the Insurance Company Annual Return for

Michigan Business and Retaliatory Taxes (Form 4588),

PART 2: FIGURING INTEREST

MBT

Annual

Return

for

Financial

Institutions

Compute the interest due for both non-filing and underpayment

(Form 4590), submit a schedule showing the entity’s

of the required estimated tax in this section. Follow the

computations for each quarter. Enter the total amounts on

instructions for each line, as interest is calculated separately

line 64 and follow the instructions for lines 65 through 70.

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

Each column represents a quarterly three-month filing period.

each quarter.

The Annualization Worksheet essentially leads filers through

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

the steps required to calculate the actual MBT due for the

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

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

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

multiplied by the percentage of estimates required for that

An approved extension does not change the due date of the

annual return (column D) for this computation.

quarter.

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

PART 3: FIGURING PENALTY

Compute the penalty due for both non-filing and underpayment

Line 53: Deduct any available MBT business loss incurred

of the required estimated tax in this section. Follow the

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

instructions for each line, as the penalty and interest is

Business loss means a negative business income tax base, after

calculated separately for each quarter and the penalty percentage

apportionment, if applicable.

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

Note: MBT business loss carryforward is not the same as

Avoiding Penalty and Interest Under MBT

the federal net operating loss carryforward or carryback.

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

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

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

loss carryforward, which was partially allowed against the

payments. The taxpayer may make payments with any of the

Modified Gross Receipts tax base only for tax years ending

following:

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

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

• CIT Quarterly Return (Form 4913) or

carryforward nor a CIT business loss carryforward may be

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

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

registered for SUW Taxes), or

• Electronic Funds Transfer (EFT).

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

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

If filing monthly using Form 160, monthly payments may

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

For example, if 21.99 percent of line 58 is equal to $4,000,000

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

in the first quarter, in the second quarter there is additional

a calendar year taxpayer may file monthly MBT estimated tax

tax on line 57 that would add another $1,000,000, the third

payments using Form 160 on February 20, March 20, and April

quarter there was no additional tax, and the fourth quarter the

128

Form 4582 - Business Tax Penalty And Interest Computation For Underpaid Estimated Tax - 2012 Page 4

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