Michigan Tax Amnesty And Tax Returns Guide And Instructons Page 3
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41If adjusted gross receipts are below the filing
Who Is Exempt from the SBT?
requirement, there is no legal obligation to file a
The following may be exempt from the single business
return. If you are registered for SBT, you may want to
tax:
notify the Department of Treasury officially that you
1. most persons who are exempt from federal income
do not have a liability to prevent any inquiries by the
tax under the IRC;
Department. Filing a Single Business Tax Notice of No
SBT Return Required (Form C-8030), may avoid
2. nonprofit cooperative housing corporations;
further correspondence from the department. However,
3. farmers producing agricultural goods. For more
if the department is not expecting a return, there is no
information request Revenue Administrative
need to file. Form C-8030 does not constitute a return,
Bulletin (RAB) 1989-47.
and does not affect the statutory limitation period for
If you are exempt, but have unrelated business
refunds or assessments.
income as defined in the IRC, that income is subject to
• Unincorporated businesses - A husband and
the SBT and a return will be required if the adjusted
wife who file their U.S. 1040 as “married filing
gross receipts are $250,000 or more.
jointly,” but own separate businesses, maintain
For a complete list of exemptions, consult a copy of
separate records and file separate federal
the SBT Act (P.A. 228 of 1975, as amended).
Schedule C forms, must file separate SBT
returns. If a husband and wife have jointly-owned
If you are exempt, and have no unrelated business
rental property and file a federal Schedule E, a
income, you are not required to file an SBT return. If
separate SBT return must be filed for the jointly-
you wish to be removed from our mailing list, please
owned rental property. The SBT return for the
contact the Treasury Registration Section at
jointly-owned property must be reported as part
517-373-0888 to discontinue your account.
of a controlled group with at least one spouse’s
Which Form Should I File?
SBT return.
• Individual - If you own more than one
Adjusted gross receipts means gross receipts plus
business that is registered as individual (e.g.,
recapture of the capital acquisition deduction. For
you own a grocery store and rental property), file
companies doing business outside of Michigan, it
one SBT return and use the combined adjusted
means apportioned gross receipts plus recapture of
gross receipts to determine filing requirements.
capital acquisition deduction.
• Joint ventures and other groups engaged in a
File
If:
business as a unit (e.g., real estate owned jointly
C-8030 - You are registered for SBT and your
by two individuals who have not treated their
adjusted gross receipts are less than
relationship as a partnership) must file an annual
$250,000, you are not claiming a refund,
return as a partnership. This does not include
you do not intend to use a loss carryforward
husband/wife ventures.
from this or previous years, and you do not
• Fiduciaries filing for estates or trusts engaged in
have an Investment Tax Credit. Form
business activity must file an SBT return and
C-8030 does not constitute a return.
report the total business activity. Beneficiaries
are not required to file an SBT return or pay the
C-8044 - Your adjusted gross receipts are less than
tax on their distributive shares. If a grantor trust
$250,000 and you wish to claim a refund
is engaged in business, the grantor or owner must
only, skip lines 10 - 16 and 22 - 25; OR
file. To determine credits, follow the guidelines
- your adjusted gross receipts are $250,000 or
for individuals.
more, you meet the criteria on the form and
Reminder: Partners and shareholders may have to
you are using the alternate tax rate.
pay tax on their share of income from a partnership or
File Form C-8000 if you are apportioning
S-corporation. For a partner or shareholder who is an
your business activity.
individual, this share of business income is taxed
C-8000 - Your adjusted gross receipts are $250,000
under the Michigan individual income tax act. For a
partner or shareholder who is a business, not an
or more; OR
individual, subject to SBT, this income must be
- your adjusted gross receipts are less than
subtracted (add losses) on the SBT annual return filed
$250,000 and you wish to claim a
for the corporation or other partnership to the extent
refund; OR
that it was included in arriving at business income.
- your adjusted gross receipts are less than
Exception: If this partner/shareholder has no
$250,000 and you are reporting a business
Michigan business activity other than its
loss carryforward or using a business loss
interest in the partnership or S-corporation, the
from a preceding year; OR
partner/shareholder itself is not subject to SBT
5
and is not required to file a return.
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