Form 4904 To 4905 - Michigan Corporate Income Tax For Insurance Companies

• Michigan Life and Health Insurance Guaranty Association

Line 50: Refer to the “Computing Penalty and Interest” section

• Catastrophic Claims Association

in Form 4904 to determine the annual return penalty rate and

use the following Overdue Tax Penalty worksheets.

• Assessment under Health Insurance Claims Assessment Act

(HICAA).

WORKSHEET – OVERDUE TAX PENALTY

Line 24: Enter the amount of recapture from line 20 of Form

A. Tax due from Form 4905, line 48 ........

4902. Include a copy of Form 4902.

B. Late or insufficient

Line 26: Enter the tax a Michigan company would pay in the

payment penalty percentage ................

state of incorporation for the company’s Michigan business.

C. Multiply line A by line B .....................

Attach a copy of the state’s tax form on which Michigan

Carry amount from line C to Form 4905, line 50.

premiums were reported.

Lines 28 through 38: In column A, “State of Incorporation,”

Line 51: Use the following worksheet to calculate Overdue Tax

enter the payments that would have been payable by a similar

Interest.

Michigan company doing business in the company’s home

state. In column B, “Michigan,” enter actual payments made to

WORKSHEET – OVERDUE TAX INTEREST

Michigan.

A. Tax due from Form 4905, line 48 ........

Line 40: Subtract line 39, column B, from line 39, column A. If

B. Applicable daily interest percentage ..

less than zero, enter zero.

C. Number of days return was past due ...

PAYMENTS, REFUNDABLE CREDITS, AND TAX DUE

D. Multiply line B by line C ....................

E. Multiply line A by line D ....................

Line 43: Enter the total tax paid with the quarterly estimated

tax returns.

Carry amount from line E to Form 4905, line 51.

Line 44: Enter the total withholding payments made on your

behalf by Flow-Through Withholding (FTW) entities. Include

NOTE: If the late period spans more than one interest rate

all withholding payments made on returns that apply to the

period, divide the late period into the number of days in each

tax year included in this return. Included on this line would be

of the interest rate periods identified under the “Computing

FTW payments made by flow-through entities (FTEs) whose

Penalty and Interest” section in Form 4904 and apply the

tax years ended with or within the tax year included in this

calculations in the Overdue Tax Interest worksheet separately

return. For example, a calendar year filer would include FTW

to each portion of the late period. Combine these interest

payments made by an FTE whose tax year ended on any day

subtotals and carry the total to Form 4905, line 51.

within the calendar year covered by this return. Any FTE that

has withheld on behalf of the taxpayer should have provided

Line 53: If the amount of the tax overpayment, less any

the taxpayer with the amount for its records.

penalty and interest due on lines 49, 50 and 51, is less than

zero, enter the difference (as a positive number) on line 52.

If an amount is entered on this line, complete the CIT Schedule

of Flow-Through Withholding (Form 4911) to account for the

NOTE: If an overpayment exists, a taxpayer must elect a

FTW payments received. The amount entered on this line

refund of all or a portion of the amount and/or designate all or

must equal the sum of the combined amount from Form 4911,

a portion of the overpayment to be used as an estimate for the

column E.

next CIT tax year. Complete lines 54 and 55 as applicable.

Line 46: The Workers’ Disability Supplemental Benefit

(WDSB) Credit is available to an insurance company subject

Line 54: If the taxpayer anticipates a CIT or Retaliatory Tax

liability in the filing period subsequent to this return, some or

to the Workers’ Disability Compensation Act of 1969. The

all of any overpayment from line 53 may be credited forward

credit is equal to the amount paid during that tax year by the

to the next tax year as an estimated payment. Enter the desired

insurance company pursuant to Section 352 of the act, as

amount to use as an estimate for the next CIT tax year.

certified by the director of the Workers’ Compensation Agency,

Department of Licensing and Regulatory Affairs (LARA),

Reminder: Taxpayers must sign and date returns. Tax

during the tax year. The amount of the credit is provided to

preparers must provide a Preparer Taxpayer Identification

taxpayers by LARA. For more information on WDSB credit

Number (PTIN), FEIN or Social Security number (SSN), a

eligibility, contact LARA, Workers’ Compensation Agency, by

business name, and a business address and phone number.

phone at 1-888-396-5041, by e-mail at wcinfo@michigan.gov,

or visit the LARA Web site at

Other Supporting Forms and Schedules

Line 49: If penalty and interest are owed for not filing

The following forms and their requested attachments should be

estimated returns or for underestimating tax, complete the CIT

included as part of this return, as applicable:

Penalty and Interest Computation for Underpaid Estimated

• Proof of payment for any items listed in the “Michigan”

Tax (Form 4899), to compute penalty and interest due. If a

taxpayer chooses not to file Form 4899, Treasury will compute

column for lines 35 through 38.

• Workers’

Disability

Supplemental

Benefit

(WDSB)

penalty and interest and bill for payment. (Form 4899 is

available on the Web at )

Certificate.

Form 4904 To 4905 - Michigan Corporate Income Tax For Insurance Companies - 2014 Page 12

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