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

receipts in the prior year were less than $350,000. In addition,

• Print using capital letters (UPPER CASE). Capital letters

if your business was not in existence in the preceding year, no

are easier to recognize.

• Print numbers like this: 012345678. Do not put a slash

safe harbor exists. In such a case, estimates must be based on

the CIT liability for the current year. There is no prior-year safe

through the zero ( ) or seven ( 7).

harbor for a taxpayer’s first CIT tax period. For a taxpayer’s

• Fill check boxes with an [X]. Do not use a check mark [

first CIT tax period the estimates must equal at least 85 percent

• Leave lines/boxes blank if they do not apply or if the

of the total CIT liability, as explained above.

amount is zero, unless otherwise instructed.

Amending Estimates

• Do not enter data in boxes filled with Xs.

If, after making payments, the estimated tax is substantially

• Do not write extra numbers, symbols, or notes on the

different than originally estimated, recompute the tax and

return, such as cents, dashes, decimal points (excluding

adjust the payment in the next quarter.

percentages), or dollar signs unless otherwise instructed.

Electronic Filing CIT Returns

Enclose any explanations on a separate sheet unless

Michigan has an enforced CIT e-file mandate. Software

instructed to write explanations on the return.

• Date format, unless otherwise specified, should be in the

developers producing CIT tax preparation software and

computer-generated forms must support e-file for all eligible

following format: MM-DD-YYYY. Use dashes (-) rather

Michigan forms that are included in their software package. All

than slashes (/).

• Enter phone numbers using dashes (e.g., 517-555-5555); do

eligible CIT returns prepared using tax preparation software or

computer-generated forms must be e-filed.

not use parentheses.

• Stay within the lines when entering information in boxes.

Treasury will be enforcing the CIT e-file mandate. The

• Report losses and negative amounts with a negative sign

enforcement includes not processing computer-generated paper

returns that are eligible to be e-filed. A notice will be mailed to

in front of the number (do not use parentheses). For example,

the taxpayer, indicating that the taxpayer’s return was not filed

a loss in the amount of $22,459 should be reported as

in the proper form and content and must be e-filed. Payment

-22,459.

received with a paper return will be processed and credited to

• Percentages should be carried out four digits to the

the taxpayer’s account even when the return is not processed.

right of the decimal point. Do not round percentages. For

Treasury will continue to accept certain Portable Document

example, 24.154266 percent becomes 24.1542 percent.

When converting a percentage to a decimal number, carry

Format (PDF) attachments with CIT e-filed returns. A current

list of defined attachments is available in the CIT “Michigan

numbers out six digits to the right of the decimal point. For

example, 24.154266 percent becomes 0.241542.

Tax Preparer Handbook for

Electronic Filing Programs,”

which is available on the Treasury Web site at

Report all amounts in whole dollars. Round down amounts of 49

org by clicking on “Tax Preparer,” then “Corporate Income

cents or less. Round up amounts of 50 cents or more. If cents are

Tax Handbook” for the applicable tax year. Follow your

entered on the form, they will be treated as whole dollar amounts.

software instructions for submitting attachments with an

e-filed return.

Unitary Business Groups (UBGs) and Combined

Filing

If the CIT return includes supporting documentation or

attachments that are not on the predefined list of attachments,

Special UBG Instructions for Insurance Companies

the return can still be e-filed. Follow your software instructions

By definition, a UBG (as defined below) can include insurance

for including additional attachments. The tax preparer or

companies, standard taxpayers, and financial institutions.

taxpayer should retain file copies of all documentation or

However, in some cases not all members of the UBG will be

attachments.

included on the same return. All standard taxpayer members

in a UBG (except those owned by and unitary with a financial

For more information and program updates, including exclusions

institution) file a single combined return on the CIT Annual

from e-file, visit the e-file Web site at org.

Return (Form 4891). Financial institution members of a UBG

The taxpayer may be required to e-file its federal return. Visit

(and any standard taxpayer owned by and unitary with a

the Internal Revenue Service (IRS) Web site at

financial institution in the group) file a combined return on the

for more information on federal e-file requirements and the IRS

CIT Annual Return for Financial Institutions (Form 4908).

Federal/State Modernized e-File (MeF) program.

Insurance companies are not specifically excluded from the

Completing Michigan Forms

statutory definition of a UBG, and thus may be members of a

UBG. However, the tax on authorized insurance companies

Treasury captures the information from paper CIT returns

using an Intelligent Character Recognition process. If

is equal to 1.25 percent of gross direct premiums written on

property or risk located or residing in Michigan. There is no

completing a paper return, avoid unnecessary delays caused

traditional apportionment for insurance companies. Thus,

by manual processing by following the guidelines below

so the return is processed quickly and accurately.

even when an authorized insurance company is unitary with

another authorized insurance company, this will have no effect

• Use black or blue ink. Do not use pencil, red ink, or felt tip

in calculating the tax. As a result, a combined return is not

pens. Do not highlight information.

Form 4904 To 4905 - Michigan Corporate Income Tax For Insurance Companies - 2014 Page 5

Related Articles

Related forms

Related Categories