Michigan Corporate Income Tax Annual Return For Financial Institutions - 2012 Page 7
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30A taxpayer that has a 52- or 53-week tax year beginning not
Additional Filing Time
more than seven days before December 31 of any year is
If additional time is needed to file an annual tax return, request
considered to have a tax year beginning after December of that
a Michigan extension by filing an Application for Extension of
tax year.
Time to File Michigan Tax Returns (Form 4).
Example 1: A taxpayer with a federal tax year beginning on
Filing a federal extension request with the IRS does not
Friday, December 28, 2012, will be treated as follows:
automatically grant a CIT extension. The IRS does not notify
• 2012 tax year end of December 31, 2012.
state governments of extensions.
• Due date of April 30, 2013.
Extension applications must be postmarked on or before the
• 2013 tax year beginning January 1, 2013.
due date of an annual return.
Example 2: A taxpayer with a federal tax year ending on
Although Treasury may grant extensions for filing CIT returns,
Thursday, January 3, 2013, will be treated as follows:
it will not extend the time to pay. Extension applications
received without proper payment will not be processed. Penalty
• 2012 tax year end of December 31, 2012.
and interest will accrue on the unpaid tax from the original due
• Due date of April 30, 2013.
date of the return.
• 2013 tax year beginning on January 1, 2013.
Properly filed and paid estimates along with the amount
Example 3: A 52- or 53-week year closing near the end of
included on the extension application will be accepted as
January is common in the retail industry. Such a taxpayer will
payment on a tentative return, and an extension may be
be treated as follows:
granted. It is important that the application is completed
correctly.
• 2012-13 fiscal year end will be January 31, 2013.
Once a properly prepared and timely filed application along
• Due date will be May 31, 2013.
with appropriate estimated tax payments is received, Treasury
• 2013-14 fiscal year will begin on February 1, 2013.
will grant an extension of eight months to file the tax return.
Annualizing
Any estimated tax that may be due with the request should
If the prior filing period is less than 12 months, annualize the
be paid in the same manner as estimated payments were paid
prior year’s tax liability to determine whether estimates may be
during the year.
based on that liability. If the prior year’s annualized liability
A written response will be sent to the legal address on file
is $20,000 or less, estimates may be based on the annualized
when a valid extension application is received.
amount if paid in four equal, timely, installments.
If a CIT extension is filed on time but the total payments
To annualize the prior year’s tax liability, multiply the prior
received by the original due date are less than 90 percent of the
year’s tax liability by 12 and divide the result by the number
tax liability, a 10 percent negligence penalty may apply.
of months the business operated.
Generally, a business is
considered in business for one month if the business operated
An extension of time to file will also extend the statute of
for more than half the days of the month. A business whose
limitations.
entire tax year is 15 days or less, however, is considered in
business for one month.
Amending a Return
○ Example: A fiscal year taxpayer with a tax year ending
To amend a current or prior year annual return, complete the
in June files a six-month return ending June 2013 reporting
Michigan CIT Amended Return for Financial Institutions
a tax liability of $9,000. Estimates for the tax year ending
(Form 4909) that is applicable for that year, explaining the
June 2014 may be based on the annualized liability of
reason for the changes. Include all schedules filed with the
$18,000. Estimates must be paid in four equal installments
original return, even if not amending that schedule. Do not
include a copy of the original return with your amended return.
of $4,500.
Due Dates of Annual Returns
Current and past year forms are available on Treasury’s Web
site at
For the 2012 tax year, all annual returns, including all fiscal
year returns, are due April 30, 2013. All fiscal filers with a
To amend a return to claim a refund, file within four years of
federal tax year ending in 2012 must file a short period return
the due date of the original return (including valid extensions).
for CIT that begins January 1, 2012. All 2011-2012 fiscal year
Interest will be paid beginning 45 days after the claim is filed
taxpayers have been granted an automatic extension to April
or the due date, whichever is later.
30, 2013, to file the short-period return that begins January
If amending a return to report a deficiency, penalty and interest
1, 2012. However, an extension of time to file is not an
may apply from the due date of the original return.
extension of time to pay.
If any changes are made to a federal income tax return that
For fiscal years ending in 2013, the 2012-2013 fiscal year return
affect the CIT tax base, filing an amended return is required.
will be due on the last day of the fourth month after the end of
To avoid penalty, file the amended return within 120 days after
the tax year.
the final determination by the IRS.
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