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

Compute penalty and interest for underpaid estimates using

required and each insurance company member of a UBG will

the CIT Penalty and Interest Computation for Underpaid

file separately on Form 4905.

Estimated Tax (Form 4899). If a taxpayer prefers not to file this

For further information on the CIT, see the Michigan

form, Treasury will compute the penalty and interest and send

Department

Treasury

(Treasury)

Web

site

a bill.

(Click on the “Corporate Income

The following chart shows the interest rate that applies to each

Tax” on the left side of the page.) Treasury will post updates

filing period. A new interest rate is set at 1 percent above the

here and via Revenue Administrative Bulletin (available on the

adjusted prime rate for each six-month period.

“Reference Library” link on the left side of the page).

Exemption Guidelines

Beginning Date

Rate

Daily Rate

January 1, 2014

4.25%

0.0001164

The tax imposed and levied under the CIT Act does not apply

July 1, 2014

4.25%

0.0001164

to an insurance company authorized under Chapter 46 or 47 of

the Insurance Code of 1956, PA 218 of 1956, MCL 500.4601 to

January 1, 2015

4.25%

0.0001164

500.4673, and MCL 500.4701 to 500.4747.

For a list of interest rates, see the Revenue Administrative

Filing the Correct Form

Bulletins

(RABs)

the

Treasury

Web

site

(Click on the “Reference Library”

A different primary return and instruction booklet are available

for standard taxpayers (Form 4891) and financial institutions

link on the left side of the page.)

(Form 4908).

Signing the Return

Due Dates of Annual Returns

All returns must be signed and dated by the taxpayer or the

taxpayer’s authorized agent. This may be the owner, partner,

The tax year of an insurance company is the calendar year. An

corporate officer, or association member. The corporate

insurance company must file the annual return before March 2

officer may be the president, vice president, treasurer, assistant

after the end of the tax year. The extension that is available to

treasurer, chief accounting officer, or any other corporate

the standard taxpayer under MCL 206.685(4) is not available to

officer (such as tax officer) authorized to sign the corporation’s

insurance companies.

tax return.

Amending a Return

If someone other than the above prepared the return, the

preparer must give his or her business address and telephone

To amend a current or prior year annual return, complete the

number.

Amended Return for Corporate Income and Retaliatory Taxes

(Form 4906) that is applicable for that year, explaining the

Print the name of the authorized signer and preparer in the

reason for the changes. Include all schedules or certificates

appropriate area on the return.

filed with the original return, even if not amending that

schedule. Enter the figures on the amended return as they

Assemble the returns and attachments (in sequence order)

and staple in the upper-left corner. (Do not staple a check to

should be. Do not include a copy of the original return with

the return.) In an e-filed return, the preparation software will

your amended return.

assemble the forms and PDF attachments in the proper order

Current forms are available on Treasury’s Web site at

automatically.

IMPORTANT REMINDER: Failure to include all the

To amend a return to claim a refund, file within four years of the

required forms and attachments will delay processing and may

original return’s due date. Interest will be paid beginning 45 days

result in reduced or denied refund or credit forward or a bill for

after the claim is filed or the due date, whichever is later.

tax due.

If amending a return to report a deficiency, penalty and interest

SIGNING AN E-FILED RETURN: As with any tax return

may apply from the due date of the original return. If any

submitted to Treasury on paper, an electronic tax return must

changes are made to a federal income tax return that affect the

be signed by an authorized tax return signer, the Electronic

CIT tax base, filing an amended return is required. To avoid

Return Originator (ERO), if applicable, and the paid tax

penalty, file the amended return within 120 days after the final

preparer, if applicable.

determination by the IRS.

NOTE: If the return meets one of the exceptions to the e-file

mandate and is being filed on paper, it must be manually signed

Computing Penalty and Interest

and dated by the taxpayer or the taxpayer’s authorized agent.

Annual and estimated returns filed late or without sufficient

The CIT Fed/State e-file signature process is as follows:

payment of the tax due are subject to a penalty of 5 percent of

the tax due, for the first two months. Penalty increases by an

Fed/State Returns: Michigan will accept the federal signature

additional 5 percent per month, or fraction thereof, after the

method. Michigan does not require any additional signature

second month, to a maximum of 25 percent.

documentation.

Form 4904 To 4905 - Michigan Corporate Income Tax For Insurance Companies - 2014 Page 6

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