Form 4908 - Corporate Income Tax Annual Return For Financial Institutions

method fairly reflects the financial institution’s net capital for

If an amount is entered on this line, complete the CIT Schedule

purposes of CIT. If the financial institution owns a subsidiary

of Flow-Through Withholding (Form 4911) to account for the

flow-through withholding payments received. The amount

that is an authorized insurance company, the equity capital

of the insurance subsidiary is not included in the financial

entered on this line must equal the sum of the combined

institution’s equity capital. Attach supporting schedules.

amount from Form 4911, column E. Attach Form 4911.

Negative Equity Capital is not permitted.

Line 26: Enter tax paid with the Application for Extension of

UBGs: Leave lines 10 through 17 blank, complete line 18 with

Time to File Michigan Tax Returns (Form 4).

combined data from Form 4910, line 22, and proceed with the

Line 29: If penalty and interest are owed for not filing

rest of the lines on Form 4908.

estimated returns or for underestimating tax, complete the CIT

NOTE: In completing the combined return, a member of a

Penalty and Interest Computation for Underpaid Estimated

UBG of financial institutions eliminates its investment in the

Tax (Form 4899) to compute penalty and interest due. If a

taxpayer chooses not to file this form, Treasury will compute

positive Equity Capital of other members of the same group.

Eliminations occur to Equity Capital at the member level.

penalty and interest and bill for payment. (Form 4899 is

available on the Web at )

Because each member of the group must compute the Net

Capital tax base in accordance with GAAP, each member should

Line 30: Refer to the “Computing Penalty and Interest”

represent a positive or zero Equity Capital before Eliminations.

section in Form 4907 to determine the annual return penalty

Line 11: Under PA 38 of 2011, Section 651(k), Michigan

rate and use the following Overdue Tax Penalty worksheet.

obligations means a bond, note, or other obligation issued by a

WORKSHEET – OVERDUE TAX PENALTY

governmental unit described in Section 3 of the Shared Credit

Rating Act, Public Act 227 of 1985, MCL 141.1053.

A. Tax due from Form 4908, line 28 ........

B. Late/extension or insufficient

Line 12: Under PA 38 of 2011, Section 651(s), United States

payment penalty percentage ................

obligations means all obligations of the United States exempt

C. Multiply line A by line B .....................

from taxation under 31 USC 3124(a) or exempt under the

United States constitution or any federal statute, including

Carry amount from line C to Form 4908, line 30.

the obligations of any instrumentality or agency of the United

Line 31: Use the following worksheet to calculate Overdue Tax

States that are exempt from state or local taxation under the

Interest.

United States Constitution or any statute of the United States.

Line 15a: If this taxpayer owns a subsidiary that is an

WORKSHEET – OVERDUE TAX INTEREST

authorized insurance company, enter the actual amount of the

A. Tax due from Form 4908, line 28 ........

capital fund maintained within that subsidiary. This does not

B. Applicable daily interest percentage ....

include a captive insurance company.

C. Number of days return was past due ...

Line 15b: Enter the minimum capital fund amount required by

D. Multiply line B by line C ....................

regulations for that insurance subsidiary.

E. Multiply line A by line D ....................

PART 2: PAYMENTS AND TAX DUE

Carry amount from line E to Form 4908, line 31.

UBGs: On lines 23 through 26, enter combined data for all

members included on this combined return.

NOTE: If the late period spans more than one interest rate

period, divide the late period into the number of days in each

Line 23: Enter overpayment credited from prior MBT or CIT

of the interest rate periods identified in the “Computing Penalty

return.

and Interest” section in Form 4907, and apply the calculations

Line 24: Enter total payments made with the CIT Quarterly

in the Overdue Tax Interest worksheet separately to each

Return (Form 4913), the CIT estimates paid with the Combined

portion of the late period.

Return for Michigan Taxes (Form 160) or via Electronic Funds

Combine these interest subtotals and carry the total to Form

Transfer (EFT). Include all payments made toward the current

4908, line 31.

filing period.

PART 3: REFUND OR CREDIT FORWARD

Line 25: Enter the total withholding payments made on your

behalf by Flow-Through Withholding entities. Include all

Line 33: If the amount of the overpayment, less any penalty

and interest due on lines 29, 30 and 31 is less than zero, enter

withholding payments made on returns that apply to the tax

the difference (as a positive number) on line 32.

year included in this return. Included on this line would be

Flow-Through Withholding payments made by flow-through

NOTE: If an overpayment exists, a taxpayer must elect a

entities (FTEs) whose tax years ending with or within the tax

refund of all or a portion of the amount and/or designate all or

year included in this return. For example a calendar year filer

a portion of the overpayment to be used as an estimate for the

would include Flow-Through Withholding payments made by

next CIT tax year. Complete lines 34 and 35 as applicable.

an FTE whose tax year ended on or after January 1, 2013, and

Line 34: If the taxpayer anticipates a CIT liability in the

on or before December 31, 2013. Any FTE that has withheld on

filing period subsequent to this return, some or all of any

behalf of the taxpayer should have provided the taxpayer with

overpayment from line 33 may be credited forward to the next

the amount for its records.

Form 4908 - Corporate Income Tax Annual Return For Financial Institutions - 2014 Page 6

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