Michigan Tax Amnesty And Tax Returns Guide And Instructons Page 13
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41INSTRUCTIONS FOR C-8044, SIMPLIFIED RETURN
Purpose: This form allows qualifying taxpayers to file
Gross Receipts Checklist
using the alternate tax rate only, while still taking their
unincorporated/S-corporation credit.
Note: This checklist is not intended to be all encompassing.
Receipts include- but are not limited to:
ELIGIBILITY
• Receipts (sales price) from the sale of assets used in a business activity;
You are eligible to use this form for the alternate tax if
•
Sale of Products;
all of the following conditions apply:
•
Services performed;
1. Your gross receipts do not exceed $9 million.
•
Gratuities stipulated on a bill;
2. Your adjusted business income, after loss adjustment,
•
Sales tax collected on the sale of tangible personal property;
does not exceed:
•
Dividend and interest income;
a. $475,000 for corporations and partnerships;
•
Gross commissions earned;
b. $95,000 for individuals or fiduciaries.
•
Rents;
•
Royalties;
3. No shareholder or officer has compensation or
•
Professional services;
allocated income, after loss adjustment, over $95,000
•
Sales of scrap and other similar items;
(from C-8000KC, columns K or M).
•
Client reimbursed expenses not obtained in an agency capacity;
4. No partner has distributive income, after loss
•
Gross proceeds from intercompany sales.
adjustment, over $95,000 (from C-8000KP).
Receipts exclude:
Note: For the purpose of computing the small business
•
Proceeds from sales by a principal that are collected in an agency capacity
credit, a member of an LLC is treated as a partner if
solely on behalf of the principal and delivered to the principal;
the LLC is taxed as a partnership.
•
Amounts received as an agent solely on behalf of the principal that are expended
5. You are not a member of a controlled group or entity
by the taxpayer under certain circumstances;
under common control.
•
Amounts from gross income of a foreign corporation engaged in the international
6. You are not filing a consolidated return.
operation of aircraft under section 883(a) of the internal revenue code;
•
Amounts received by an advertising agency used to acquire advertising media
7. You are not apportioning your business activity.
time, space, production, or talent on behalf of another person;
• Corporations - Allocated income for regular
•
Amounts received by a person that manages real property owned
corporations is either:
by a client that are deposited into a separate account kept in the name
of the client and that are not reimbursed and are not indirect payments
a. shareholders’ or officers’ compensation and
for management services provided to that client.
directors’ fees from C-8000KC, column K, or
b. shareholders’ compensation, directors’ fees and
share of business income, after loss adjustment, or
3. You have an Investment Tax Credit.
loss from C-8000KC, column M.
Loss Adjustment. If you are not eligible for the full
If either of these is greater than $95,000, the
small business credit or the alternate tax calculation due
corporation is not eligible for the full small business
to an adjusted business income or allocated income
credit.
disqualifier, you may benefit from the SBT Loss
Adjustment Worksheet (3307), page 25. If your adjusted
Allocated income for S-corporations is:
business income was less than zero in any of the five
shareholders’ compensation, directors’ fees and
years immediately preceding the tax year for which you
share of business income, after loss adjustment, or
are claiming a credit and you received a small business
loss from C-8000KC, column M.
credit for that same year, you may adjust for the loss. A
Important: If the allocated income, after loss adjust-
loss adjustment will not affect a reduction to the small
ment, is more than $95,000, you must file using Form
business credit based on gross receipts that exceed 9
C-8000.
million. It will also not change the amount of allocated
income on C-8000KC, Column K for a C-corporation.
Even if you are eligible to file this form, you may pay a
lower tax by filing the Single Business Tax Annual
Tax period is less than 12 months. Your annual return
Return (Form C-8000) and taking a standard small
must be filed for the same period as your federal income
business credit using SBT Credit for Small Businesses
tax return. If your business operated less than 12 months,
and Contribution Credits (Form C-8000C). This is
annualize your gross receipts, business income and all
especially true if any of the following applies to you:
shareholders’, officers’ and partners’ income to
1. You have or are establishing a business loss
determine which forms to file and your eligibility for a
carryforward.
standard small business tax credit or alternate tax. Do not
use annualized numbers on your return; use them only to
2. You wish to take a community foundations, homeless,
determine filing requirements and qualifications for
public contributions or public utility property tax
credits. See General Information, page 6 for complete
credit or have nonrefundable credits.
annualizing instructions.
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