Michigan Tax Amnesty And Tax Returns Guide And Instructons Page 35
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41INSTRUCTIONS FOR C-8020 PENALTY AND INTEREST
COMPUTATION FOR UNDERPAID ESTIMATED TAX
Purpose: To compute penalty and interest for
worksheet if your liability is not evenly distributed
underpaying, late filing or late payment of quarterly
through your tax year.
estimates. If you prefer not to file this form, Treasury
5. Your estimated quarterly payments reasonably
will compute any applicable penalty and interest and
approximate the tax liability incurred for each quarter,
bill you.
and the total of all payments equals at least 1 percent
of the gross receipts for the tax year. Complete the
Note: Penalty and interest for late filing or late
annualization worksheet if your liability is not evenly
payment on the annual return is computed separately. See
distributed through your tax year.
"How Do I Compute Penalty and Interest" on page 8.
6. You are a farmer, fisher or seafarer and file Single
Estimated returns and payments are required from any
Business Tax Annual Return (Form C-8000) by
taxpayer who expects an annual SBT liability of more
March 1 or a tentative annual return with your
than $600. Exceptions are listed below. If you owe
payment by January 15 and your final annual return
estimated tax and your estimated return with full payment
on or before April 15.
is not filed or is filed late, a penalty of 5 percent of the
tax per month, to a maximum of 50 percent, will apply. If
7. The sum of your estimated payments equals the
you made no estimated tax payments and none of the
annual tax on the preceding year’s return providing
exceptions below apply to you, compute the interest due
these payments were made in four timely equal
(Part 2) and the penalty for non-filing (Part 3).
payments, or 12 if paid on your SUW returns, and the
preceding year’s tax was $20,000 or less.
If an estimated return is filed with an insufficient
payment, a 10 percent negligence penalty or 25 percent
LINE - BY - LINE INSTRUCTIONS
intentional disregard penalty may apply. If your
Lines not listed are explained on the form.
estimated tax payments are underpaid and none of the
Line 2, Account Number. Enter the same account
exceptions below apply to you, compute the interest for
number used on page 1 of your annual return.
underpayment in Part 2. If the 10 percent negligence
Part 1, Estimated Tax Required for the Year.
penalty or 25 percent intentional disregard penalty
applies, Treasury will bill you.
Line 4. Enter 85 percent of the annual tax amount on line
3. If your preceding year’s tax was less than $20,000
Exceptions
(annualize if less than 12 months), enter the smaller of
If any of the conditions listed below apply to you, you do
the preceding year’s tax or 85 percent of line 3.
not need to file this form or pay penalty and interest. If
Line 5. Payment Due Dates. Enter the due date for each
your business operated less than 12 months in the
quarterly return. For calendar-year filers these dates are
preceding year, annualize your figures to determine if the
April 30, July 31, October 31 and January 31. For fiscal-
exceptions apply. See page 6 for complete annualizing
year filers, these dates are four, seven, 10 and 13 months
instructions.
after the start of your fiscal year. Payment is due on the
1. The annual tax on your current annual return is $600
last day of the month.
or less.
Line 6. Divide the amount of the estimated tax required
2. You had business activity in Michigan in the
for the year on line 4 by 4 and enter this as your
preceding tax year, but reported no tax liability.
estimated tax for each quarter. If your business operated
less than 12 months, divide by the number of quarterly
3. You had business activity in Michigan in the
returns required and enter this as your estimated tax for
preceding tax year, but were not required to file an
each quarter.
annual return for SBT. Note: By filing a Notice of No
SBT Return Required (Form C-8030) for the
Actual Quarterly Tax. If you compute quarterly tax
preceding tax year, you may avoid unnecessary
based on the actual tax base for each quarter, enter the
penalty and interest.
tax from line 30 of the annualization worksheet. The total
of the four computed amounts cannot be less than 85
4. Your estimated quarterly payments reasonably
percent of the current year tax liability.
approximate the tax liability incurred for each quarter,
Line 7. Complete column A only. Enter the amount of
and the total of all payments equals at least 85 percent
of your annual liability. Complete the annualization
65
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