Michigan Corporate Income Tax Annual Return For Financial Institutions - 2012 Page 5
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30receipts in the prior year were less than $350,000. In addition,
• Limited Liability Companies (LLCs) — federal forms listed
if your business was not in existence in the preceding year, no
above, depending on how federal returns have been filed.
safe harbor exists. In such a case, estimates must be based on
Reference these federal forms to complete Form 4908.
the CIT liability for the current year. There is no prior-year safe
harbor for a taxpayer’s first CIT tax period. For a taxpayer’s
Copies of certain pages from these federal forms must also be
first CIT tax period the estimates must equal at least 85 percent
attached to the annual return filed. See the instructions for Form
of the total CIT liability, as explained above.
4908 for further details.
Amending Estimates
Completing Michigan Forms
If, after making payments, the estimated tax is substantially
Treasury captures the information from paper CIT returns
different than originally estimated, recompute the tax and
using an Intelligent Character Recognition process. If
adjust the payment in the next quarter.
completing a paper return, avoid unnecessary delays caused
by manual processing by following the guidelines below so the
Electronic Filing of CIT Returns
return is processed quickly and accurately.
Michigan has an enforced CIT e-file mandate. Software
• Use black or blue ink. Do not use pencil, red ink, or felt tip
developers producing CIT tax preparation software and
pens. Do not highlight information.
computer-generated forms must support e-file for all eligible
• Print using capital letters (UPPER CASE). Capital letters
Michigan forms that are included in their software package. All
are easier to recognize.
eligible CIT returns prepared using tax preparation software or
computer-generated forms must be e-filed.
• Print numbers like this: 0123456789. Do not put a
slash through the zero ( ) or seven ( 7 ).
Treasury will be enforcing the CIT e-file mandate. The
• Fill check boxes with an [X]. Do not use a check mark [
a
enforcement includes not processing computer-generated paper
].
returns that are eligible to be e-filed. A notice will be mailed to
• Leave lines/boxes blank if they do not apply or if the
the taxpayer, indicating that the taxpayer’s return was not filed
amount is zero, unless otherwise instructed.
in the proper form and content and must be e-filed. Payment
• Do not enter data in boxes filled with Xs.
received with a paper return will be processed and credited to
• Do not write extra numbers, symbols, or notes on the
the taxpayer’s account even when the return is not processed.
return, such as cents, dashes, decimal points (excluding
Treasury will continue to accept certain Portable Document
percentages), or dollar signs, unless otherwise instructed.
Format (PDF) attachments with CIT e-filed returns. A current
Enclose any explanations on a separate sheet unless instructed
list of defined attachments is available in the CIT “Electronic
to write explanations on the return.
Filing Tax Preparer Handbook,” which is available on the
• Date format, unless otherwise specified, should be in the
Treasury Web site at by clicking on
following format: MM-DD-YYYY. Use dashes (-) rather than
“Business Taxpayer,” then “Corporate Income Tax E-File,” and
slashes (/).
looking under “Tax Preparer Resources.” Follow your software
• Enter phone numbers using dashes (e.g., 517-555-5555); do
instructions for submitting attachments with an e-filed return.
not use parentheses.
If the CIT return includes supporting documentation or
• Stay within the lines when entering information in boxes.
attachments that are not on the predefined list of attachments,
• Report losses and negative amounts with a negative
the return can still be e-filed. Follow your software instructions
sign in front of the number (do not use parentheses). For
for including additional attachments. The tax preparer or
example, a loss in the amount of $22,459 should be reported as
taxpayer should retain file copies of all documentation or
-22,459.
attachments.
• Percentages should be carried out four digits to the right
For more information and program updates, including
of the decimal point. Do not round percentages. For example,
exclusions from e-file, visit the e-file Web site at
24.154266 percent becomes 24.1542 percent. When converting
.
a percentage to a decimal number, carry numbers out six
The taxpayer may be required to e-file its federal return. Visit
digits to the right of the decimal point. For example, 24.154266
the Internal Revenue Service (IRS) Web site at
percent becomes 0.241542.
for more information on federal e-file requirements and the IRS
• Report all amounts in whole dollars. Round down
Federal/State Modernized e-File (MeF) program.
amounts of 49 cents or less. Round up amounts of 50 cents or
more. If cents are entered on the form, they will be treated as
Complete Federal Tax Forms First
whole dollar amounts.
Before preparing CIT returns, complete all federal tax forms.
These forms may include:
Suggested Order of Analysis and Preparation of
an CIT Annual Return
• Fiduciaries — U.S. Form 1041, 1065, and related Schedules
First, determine whether the taxpayer has nexus with
C, C-EZ, D, E, K, 4797, and 8825.
Michigan. Nexus is a legal term that expresses whether a
• Corporations — U.S. Form 1120, 1120-S, and Schedules D,
taxpayer has sufficient connection to Michigan to justify
K, 851, 940, 4562, 4797, and 8825.
subjecting the taxpayer to Michigan tax.
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