Michigan Sales, Use, And Withholding Tax Forms And Instructions (Page 15 of 16) in pdf

with the corresponding dormancy periods can be found at

Corporate Income Tax Estimates

On January 1, 2012 legislation for the Corporate Income Tax

Report Unclaimed Property to Avoid Penalties. Review your

(CIT) was enacted. Visit for

records to determine if you are holding unclaimed property.

additional information, forms, and ﬁ ling requirements.

Property remitted voluntarily will not be subject to the 25

Successor Liability

percent penalty outlined in the law; however, interest will be

charged from the date that the property should have been

If you sell your business, your successor must hold enough of

reported. If you are selected for an audit, you will be subject

the purchase money to satisfy the amount of sales, use, and

to the penalty and interest charges outlined in the law. State-

withholding tax that may be due until you produce a receipt

initiated audits will cover the last ten years, as authorized in

for payment of the tax from Treasury or a certiﬁ cate from

the Uniform Unclaimed Property Act.

Treasury stating no tax is due. If the successor fails to withhold

sufﬁ cient funds, he or she may be held liable for unpaid taxes.

Noncompliance With Unclaimed Property Reporting

Requirements. Section 31(2) of the Uniform Unclaimed

Ofﬁ cer Liability

Property Act gives the State Treasurer the authority to conduct

Ofﬁ cers, members, managers, or partners of a corporation,

unclaimed property examinations (audits) if there is reason to

limited liability company, limited liability partnership,

believe that an entity is a holder that has failed to report or has

partnership, or limited partnership who have responsibility

underreported unclaimed property. As a result of the audit,

for ﬁ ling returns or making payments are personally liable for

penalty and interest may be assessed as follows:

failure to ﬁ le or for unpaid taxes, penalty, and interest under

Interest at one percentage point above the adjusted prime rate per

Public Act 169 of 1982.

annum per month on the property or value of the property from

Revenue Administrative Bulletins (RAB)

the date the property should have been paid or delivered, and/or

An RAB is a directive issued by Treasury. Its purpose is

Penalty at 25 percent of the value of the property that should

to promote uniform application of tax laws throughout the

have been paid or delivered, and/or

State and provide information and guidance to taxpayers. An

Penalty at $100 for each day the report is withheld or the duty

RAB states the ofﬁ cial position of Treasury, has the status of

is not performed but not more than $5,000.

precedent in the disposition of cases unless and until revoked

or modiﬁ ed, and may be relied on by taxpayers in situations

Reporting Manual and Free Software. The Manual

where the facts, circumstances, and issues presented are

for

Reporting

Unclaimed

Property,

including

forms

substantially similar to those set forth in the RAB. A taxpayer

and

instructions,

available

unclaimedproperty. Also available on Treasury’s Web site is

must consider the effects of subsequent legislation, regulations,

the Holder Reporting System (HRS), a free software package

court decisions, and RABs when relying on an RAB. See RAB

for creating unclaimed property reports in an electronic format

1989-34 for more information. To access a copy of a particular

RAB, go to treasury.

for submission to Treasury.

Unclaimed Property Reporting for Businesses

Completing and mailing your Combined Return (Form 160):

and Government Entities

1. Enter tax due ﬁ gures when completing Form 160. Gross

sales ﬁ gures are reported on the annual return only.

Michigan’s Uniform Unclaimed Property Act, Public Act 29 of

1995, as amended, requires businesses and government entities

2. Figures entered on Form 160 must correspond to the

to report and remit to the Michigan Department of Treasury

description provided for that tax line.

(Treasury) abandoned and unclaimed property belonging to

3. Subtotal amounts must not be entered on Form 160.

owners whose last known address is in Michigan. In addition,

4. Account information changes must not be requested on

every business or government entity that is incorporated in

Form 160. File Form 163 to request account changes.

Michigan must report to the Treasury abandoned property

belonging to owners where there is no known address.

5. A Form 160 must be submitted for each ﬁ ling period

required according to your ﬁ ling status. This includes

Most businesses have unclaimed property resulting from

return periods that have zero due or no activity.

normal operations. Any asset, tangible or intangible, belonging

6. Payment for the CIT estimate must be enclosed with

to a third party that remains unclaimed for a speciﬁ ed period of

Form 160 if reporting your CIT estimate on that form.

time is considered unclaimed property. For example, uncashed

7. All discounts must be calculated and reported correctly.

payroll checks must be turned over to the State after one year;

most other property types, such as vendor checks and accounts

8. Appropriate pre-identiﬁ ed return is used for the ﬁ ling

receivables credit balances, must be turned over after three

period indicated on that return.

years. Government entities must turn over unclaimed property

9. Negative/credit ﬁ gures must not be entered on the return.

after one year.

10. Enclose payment with return if an amount is due.

Due Date. The due date for the unclaimed property annual

11. Your account number must be written on your check.

report is July 1, 2013 for property reaching its dormancy period

as of March 31, 2013.

12. Do not report or pay your Michigan Flow-Through

Withholding on Form 160.

Dormancy Period. The dormancy period for most property

types is three years. A detailed listing of property types along

Michigan Sales, Use, And Withholding Tax Forms And Instructions Page 15

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