Michigan Flow-Through Withholding - 2012 Page 13
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24Instruction for Form 4918
Annual Flow-Through Withholding Reconciliation Return
If more space is needed for Part 3 or Part 4, flow-through entities should go online to to
print out additional pages. Repeat the flow-through entity FEIN from page one at the top right of each additional page.
All pages must be submitted as part of a valid return.
beginning and ending dates (MM-DD-YYYY) that correspond to
Purpose
the taxable period included in this return.
This form is used to calculate the amount of Flow-Through
Tax year means the calendar year, or the fiscal year ending during
Withholding (FTW) due for the tax year, reconcile this amount
the calendar year, of which the withholding base of a flow-through
with the quarterly payments remitted to the state, and to distribute
entity is computed. If a return is made for a part of a year, tax year
the entire amount of FTW to the flow-through entity’s members.
means the period for which the return is made. Generally, a flow-
through entity’s tax year is for the same period as is covered by its
General Instructions
federal income tax return.
Trusts: Even though Form 4918 lists trusts as members that are
Fiscal Year Flow-Through Entities: For fiscal years ending
to be withheld on, trusts are not considered to be members of a
in 2012 your FTW tax year will be a short year and will begin
flow-through entity or flow-through entities for purposes of FTW.
January 1, 2012. The first FTW Annual Reconciliation return will
Because of this, a trust is not required to be withheld on and is not
only cover business activity that occurs after December 31, 2011.
required to withhold on its beneficiaries.
Line 2: Enter the flow-through entity’s name.
FTW on C Corporation and Intermediate Flow-Through
Line 3: Enter the flow-through entity’s Federal Employer
Entity Members: If the allocated or apportioned business income
of the flow-through entity is $200,000 or less for the flow-through
Identification Number (FEIN). Be sure to use the same account
number on all forms.
entity’s tax year, FTW is not required on members that are C
Corporations or intermediate flow-through entities. Further, if the
NOTE: The flow-through entity must register for FTW before
flow-through entity received an exemption certificate from a C
filing this form. Flow-through entities are encouraged to register
Corporation member for the tax year, FTW is not required on that
Flow-through
online
at
member. Complete this form to claim a refund of the amounts paid
entities that register with the State online receive their notification
on behalf of these members.
of the registration within seven days.
This form may not be amended: When filing this form, the
NOTE: If the flow-through entity does not have an FEIN, the
flow-through entity is required to use its “tentative business
flow-through entity must obtain an FEIN before filing. Visit
income” for the tax year. The Department recognizes that this
Treasury’s Business Taxes Web site for more information on
amount potentially will not be known with certainty at the time
obtaining an FEIN.
this form is filed. When filing this form, the flow-through entity
is required to use its best estimate of business income based on all
Returns received without a registered account number will not be
available information. If, after this form is filed, the flow-through
processed until such time as a number is provided.
entity determines that its best estimate of business income was
Line 4: Enter the flow-through entity’s complete address,
incorrect, the flow-through entity should report that difference to
including the two-digit abbreviation for the country code. See
its members. The members, when filing their respective annual
the list of country codes in the Corporate Income Tax Forms and
returns, will correct the over- or under-withholding created by the
Instructions for Standard Taxpayers (Form 4890).
over- or understatement of business income.
If the flow-through entity is unitary with a CIT taxpayer, fill
NOTE: Any refund and/or correspondence regarding the return
filed and/or refund will be sent to the address listed here. The
out the Schedule of Unitary Apportionment for Flow-Through
flow-through entity’s primary address in Treasury records,
Withholding (Form 4919), and enter the amount from line 5 of
identified as the legal address and used for all purposes other than
Form 4919 on line 11A of this form. Leave lines 5a, 5b, 5c, and
refund and correspondence on a specific FTW return, will not
10A blank. For more information on what constitutes a unitary
change unless the flow-through entity files a Notice of Change or
relationship between a flow-through entity and a CIT taxpayer, see
Discontinuance (Form 163).
the instructions for Flow-Through Entities that are Unitary with
the Taxpayer (Form 4900).
PART 1: APPORTIONMENT PERCENTAGES
Parts 3 and 4 of this form distribute the FTW that has been paid
FOR INCOME FROM FlOW-THROuGH ENTITIES
by the flow-through entity to the flow-through entity’s members.
The flow-through entity must only withhold on business activity that
When completing Parts 3 and 4, include only those members
is allocated or apportioned to Michigan. A flow-through entity that
whose tax year ends with or within the tax year of the flow-
has not established nexus with one other state or a foreign country at
through entity that is filing this return.
the member level, as explained below, is subject to FTW on its entire
business activity. If the flow-through entity is able to apportion its
line-by-line Instructions
business income, it will be apportioned to Michigan based on sales.
For a Michigan-based flow-through entity, all sales are Michigan
Lines not listed are explained on the form.
sales unless the flow-through entity’s business activity causes its
Line 1: If not a calendar-year flow-through entity, enter the
members to be subject to tax in another state or foreign country.
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