Instructions For Form 4582, Michigan Business Tax (Mbt) Penalty And Interest Computation For Underpaid Estimated Tax (Page 2 of 3) in pdf

Actual Quarterly tax. If a taxpayer computes quarterly tax

Formerly, taxpayers could make payments on a monthly basis

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

by remitting a check with a Combined Return for Michigan

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

Tax (Form 160). Form 160 was replaced effective Janaury

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

2015. The new form no longer accommodates MBT payments.

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

As a result, Form 4913 is the only form that supports an MBT

amounts cannot be less than line 2.

estimated payment.

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

Estimated returns and payments for calendar year taxpayers

year overpayment credited to the current tax year estimates.

are due to Treasury by April 15, July 15, October 15, and

January 15 of the following year. Fiscal year taxpayers should

Line 6: Amount Paid.

make returns and payments by the appropriate due date which

• Column A: Enter estimated payments made by the due

is fifteen days after the end of each fiscal quarter. The sum of

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

estimated payments for each quarter must always reasonably

the total Flow-Through Withholding payments from line 62

approximate the liability for the quarter.

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

Note: Your debit transaction will be ineligible for EFT

4590, or line 50 of Form 4588. Also in column A, enter the

if the bank account used for the electronic debit is funded or

total refundable credits from line 23 of the MBT Refundable

otherwise associated with a foreign account to the extent that

Credits (Form 4574) or line 5 of the Miscellaneous Credits

the payment transaction would qualify as an International ACH

for Insurance Companies (Form 4596).

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 the Michigan Department of Treasury’s (Treasury)

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

EFT Unit at 517-636-6925 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

MODIFIED GROSS RECEIPTS AND BUSINESS

column C and by the due date in column D.

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

If filing Form 4588, or Form 4590, submit a schedule showing

column. Attach a separate schedule if necessary.

the entity’s computations for each quarter. Enter the total

PART 2: FIGURING INTEREST

mounts on line 64 and follow the instructions for lines 65

Compute the interest due for both non-filing and underpayment

through 70.

of the required estimated tax in this section. Follow the

Each column represents a quarterly three-month filing period.

instructions for each line, as interest is calculated separately

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

The Annualization Worksheet essentially leads filers through

each quarter.

the steps required to calculate the actual MBT due for the

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

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

multiplied by the percentage of estimates required for that

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

quarter.

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

An approved extension does not change the due date of the

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

annual return (column D) for this computation.

Line 53: Deduct any available MBT business loss incurred

PART 3: FIGURING PENALTY

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

Compute the penalty due for both non-filing and underpayment

Business loss means a negative business income tax base, after

of the required estimated tax in this section. Follow the

apportionment, if applicable.

instructions for each line, as the penalty and interest is

Note: MBT business loss carryforward is not the same as

calculated separately for each quarter and the penalty percentage

the federal net operating loss carryforward or carryback.

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

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

Avoiding Penalty and Interest Under MBT

loss carryforward, which was partially allowed against the

If estimated liability for the year is reasonably expected to

Modified Gross Receipts tax base only for tax years ending

exceed $800, a taxpayer must file estimated returns. A taxpayer

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

may remit quarterly estimated payments by check with a

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

Corporate Income Tax Quarterly Return (Form 4913) or may

carryforward nor a CIT business loss carryforward may be

remit monthly or quarterly estimated payments electronically

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

by Electronic Funds Transfer (EFT). When payments are made

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

by EFT, Form 4913 is not required.

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

128

Instructions For Form 4582, Michigan Business Tax (Mbt) Penalty And Interest Computation For Underpaid Estimated Tax Page 2

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