Michigan Corporate Income Tax Annual Return For Financial Institutions - 2012 Page 4
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302012 General Information for Financial Institutions
Standard Taxpayers and Insurance Companies: See the Corporate Income Tax (CIT) Instruction Booklet for Standard Taxpayers
(Form 4890) or the CIT Instruction Booklet for Insurance Companies (Form 4904) at
Fiscal Year Filers: See “Supplemental Instructions for Fiscal CIT Filers — Financial Institutions” later in this booklet.
to exceed $800, a taxpayer must file estimated returns either
This booklet is intended as a guide to help complete the CIT
monthly or quarterly. Payments can be made with either of the
return. It does not take the place of the law.
following returns:
Who Files a Financial Return?
• Michigan Corporate Income Tax Quarterly Return (Form
4913), or
File a CIT Annual Return for Financial Institutions (Form
4908) if the taxpayer is any of the following:
• Combined Return for Michigan Taxes (Form 160) (if
registered for Sales, Use, and Withholding Taxes).
• A bank holding company, a national bank, a state chartered
bank, a state chartered savings bank, a federally chartered
If paying quarterly with Form 160 or Form 4913, estimates are
due by the 15th of the month following the end of the quarter.
savings association, or a federally chartered farm credit system
institution.
If paying monthly using Form 160, monthly payments are
due by the 20th day of the month. For example, a taxpayer
• Any entity, other than an entity subject to the tax imposed
may file monthly estimated tax payments using Form 160
under Chapter 12 (insurance company), who is directly or
on February 20, March 20, and April 20 rather than a single
indirectly owned by an entity described in 206.651(f)(i) and is a
quarterly payment on April 15 provided the combined
member of the UBG.
estimated tax payments for those months are calculated using
• A UBG consisting of entities described above.
the instructions provided with the form. For taxpayers electing
NOTE: Because the definition of financial institution for CIT
to make monthly remittances by Electronic Funds Transfer
(EFT) where the requirement to file a paper Form 160 has
purposes includes any entity (except an insurance company)
that is owned by a bank or other entity (as described above)
been waived, estimates are due by the 20th day of the month
and is a member of a UBG with its parent, this may cause an
following the month’s end. The estimates for the quarter must
entity that is not commonly thought of as a financial institution
also reasonably approximate the liability for the quarter.
to be treated as one for return filing purposes. A UBG of
NOTE: Your debit transaction will be ineligible for EFT
financial institutions must file a combined return on Form
if the bank account used for the electronic debit is funded or
4908 that includes each member of the group that is a financial
otherwise associated with a foreign account to the extent that
institution.
the payment transaction would qualify as an International ACH
If the taxpayer is not any of the above, check to see if filing
Transaction (IAT) under NACHA Rules. Contact your financial
institution for questions about the status of your account.
either the Insurance Company Annual Return for Corporate
Contact the Michigan Department of Treasury’s (Treasury)
Income and Retaliatory Taxes (Form 4905) or the CIT Annual
Return (Form 4891) for standard filers is required.
EFT Unit at (517) 636-6925 for alternate payment methods.
The estimated payment made with each quarterly return must
Using This Booklet
be computed on the actual CIT for the quarter, or 25 percent of
This CIT financial institution booklet includes forms and
the estimated total liability if paying a CIT liability.
instructions for financial institutions. These forms are designed
To avoid interest and penalty charges, estimated payments must
for calendar year 2012 and for the 2012 short-year of a fiscal
equal at least 85 percent of the total liability for the tax year
filer with a federal tax year ending in 2012.
and the amount of each estimated payment must reasonably
approximate the tax liability for that quarter. If the prior
Fiscal Year Filer: See “Supplemental Instructions for Fiscal
year’s tax under the CIT Act is $20,000 or less, estimated
CIT Filers — Financial Institutions” found later in this
tax may be based on the prior year’s total tax liability paid in
instruction booklet.
four equal installments. (“Four equal installments” describes
Read the “General Information” first. It is recommended that
the minimum pace of payments that will satisfy this safe
taxpayers and tax preparers also briefly review the instructions
harbor.) If the prior year’s tax liability was reported for a
for all forms.
period less than 12 months, this amount must be annualized
for purposes of both the $20,000 ceiling and calculating the
Overview of CIT for Financial Institutions
quarterly payments due under this method. Payments at a more
accelerated pace also will qualify. If the year’s tax liability is
Every financial institution with nexus in Michigan is subject to
$800 or less, estimates are not required.
a franchise tax. The franchise tax is imposed upon the tax base
of the financial institution after allocation or apportionment to
NOTE: Reliance on the tax liability of the prior year as a
Michigan at the rate of 0.29 percent.
means to avoid interest and penalty charges is only allowed if
you had business activity in Michigan in that prior year and
Filing CIT Quarterly Tax Estimates for 2012
filed a CIT return for that prior year. A return must be filed
If the estimated liability for the year is reasonably expected
to establish the tax liability for that prior year, even if gross
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