Form 4592 - Michigan Business Tax For Insurance Companies - 2012 Page 2
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28Important Information for 2012
be claimed in lieu of the CIT. If a person with a certificated
Changes Beginning in 2012
credit under section 435 or 437 that elects to pay the MBT is a
This MBT booklet includes forms and instructions designed for
member of a Unitary Business Group (UBG), the Designated
the calendar year 2012. All filers should read the instructions
Member of the UBG, and not the member, shall file a UBG
carefully.
return and pay the tax, if any, under the MBTA and claim that
certificated credit.
NOTE: Per Public Act 39 of 2011, the Corporate Income Tax
(CIT) replaces the MBT for most taxpayers effective January 1,
For a tax year beginning after December 31, 2011, if a
2012. After that date, the MBT continues as the MBT election.
certificate of completion, assignment certificate, or component
Beginning January 1, 2012, only those taxpayers with a
completion certificate is issued under section 437 to a taxpayer,
certificated credit, which is awarded but not yet fully claimed or
or if a certificate of completed rehabilitation, assignment
utilized, may elect to be MBT taxpayers. If a taxpayer files an
certificate, or reassignment certificate is issued under section
MBT return and claims a certificated credit, the taxpayer makes
435 to a taxpayer, beginning on or after January 1, 2012, the
the election to file and pay under the MBT until the certificated
taxpayer may elect to claim an accelerated refund for 90
credit and any carryforward of that credit are exhausted. For
percent of the amount of that certificate.
most certificated credits, a taxpayer must claim the credit and
If section 437 or 435 provides that payment of a credit will be
elect to remain taxable under the MBT with the annual return
made over a period of years or limits the annual amount of a
filed for taxpayer’s first tax year ending after December 31,
payment, an accelerated refund may only be claimed for the
2011. Once the election is made and the return is submitted, the
amount payable in the year claimed.
taxpayer may not amend the return to revoke the election.
However, a taxpayer claiming the Special Consideration
If an insurance company does not have a certificated credit,
Historic Preservation Credit under section 435(20) may elect to
it cannot make the MBT election and is subject to the CIT
claim an accelerated refund for the balance of the credit, but
beginning January 1, 2012.
the amount of that refund shall be equal to 86 percent of the
Helpful Hints for Completing an MBT Return
amount of the credit.
Estimates
For more details, see the 2012 Request for Reduced Refundable
If making estimated payments by Electronic Funds Transfer
Credit Payout for the Brownfield Redevelopment Credit and
(EFT), the associated vouchers are not required to be
Historic Preservation Credit (Form 4889). Michigan Tax
submitted.
Forms are online at An accelerated
credit refund will be paid within 60 days after Form 4889 is
Amended Returns
filed.
To amend a current or prior year annual return, complete the
Form 4588 that is applicable for that year, check the box in the
Brief Overview of the CIT
upper-right corner of the return, and attach a separate sheet
The CIT takes effect January 1, 2012, and replaces the MBT,
explaining the reason for the changes. Include an amended
except for certain businesses that wish to retain certain
federal return or a signed and dated Internal Revenue Service
certificated credits. Among the highlights of the CIT:
(IRS) audit document. Include all schedules filed with the
original return, even if not amending that schedule. Enter
The CIT applies to all insurance companies unless the
the figures on the amended return as they should be. Do not
insurance company is able to and does make the MBT election.
include a copy of the original return with your amended return.
Flow-through entities may be subject to Flow-Through
Changes for Disregarded Entities
Withholding.
Public Act 305 was enacted into law on December 27, 2011, to
Taxpayers will be required to file quarterly estimated returns as
add Michigan Compiled Law 208.1512 to the MBT. This section
well as an annual return.
provides that a person that is a classified as a disregarded
entity for federal purposes is classified as a disregarded entity
Annual payments will still be due on the prescribed due date of
for MBT purposes. This means that a disregarded entity for
the annual return.
federal tax purposes, including a single member LLC or Q-Sub,
For insurance companies, the CIT is equal to 1.25% of gross
must file as if it were a sole proprietorship if it is owned by an
direct premiums written on property or risk located in
individual, or a branch or division if the branch or division is
Michigan.
owned by another business entity.
Insurance companies may claim the Workers’ Disability
Accelerated Credits in 2012
Supplemental Benefit (WDSB) Credit and certain insurance
A taxpayer with a certificated credit under section 435
specific credits under the CIT, if eligible.
(Historic) or 437 (Brownfield) of the Michigan Business
Tax Act (MBTA), which certificated credit or any unused
An entity that has received, has been approved to receive, or
carryforward may be claimed in a tax year ending after
has been assigned certain certificated tax credits under MBT
December 31, 2011, may elect to pay the tax imposed by the
may elect to continue to file and pay under the MBT in lieu of
MBTA in the tax year in which that certificated credit may
the CIT. This election must be made with the annual return
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