Michigan Tax Amnesty And Tax Returns Guide And Instructons Page 4
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41How Do I File If My Tax Year
- your adjusted gross receipts are less than
$250,000 and you want to claim an
is Less Than 12 Months?
Investment Tax Credit; OR
Your annual return must be filed for the same period
- you want to calculate the alternate tax but
as your federal income tax return. If your business
must use the reduced credit; OR
operated less than 12 months you must annualize to
- you are a member of a controlled group and
determine which forms to file and your eligibility for a
your adjusted gross receipts are equal to or
standard small business tax credit or the alternate tax.
greater than $100,000.
Annualized business income will also determine the
amount of your unincorporated credit. Do not use
The C-8000 is the only form which will guarantee
annualized numbers on your return; use them only to
the calculation of the lowest tax liability. This list does
determine filing requirements and qualifications for
not cover all situations. See the instructions for each
credits.
form for more information.
To annualize: Multiply each amount, total gross
Who Must File SBT Quarterly Tax Estimates?
receipts, business income, and shareholder’s, officer’s
If you expect your annual SBT liability to be more than
and partner’s income by 12 and divide the result by the
$600, you must file quarterly estimates. If your tax
number of months the business operated. You are
year was less than 12 months, e.g., you opened or
considered in business for one month if the business
closed a business during the year, annualize the tax to
operated for more than half the days of the month.
see if you must file estimates.
1. If annualized adjusted gross receipts (annualized
The Department of Treasury sends personalized
apportioned gross receipts plus recapture) are
quarterly forms (Form C-8002) to each registered
$250,000 or more, you must file an annual return.
estimate filer, except those who pay SBT using the
Annualized adjusted gross receipts plus Investment
Combined Return for Michigan Taxes. You can speed
Tax Credit (ITC) recapture are also used to
the posting of your account and improve the accuracy
determine the ITC adjusted gross receipts
of your payment information by using your
percentage for the year. If annualized gross receipts
personalized forms or by requiring your tax preparer
are more than $10,000,000, you are not eligible for
to use them. Do not duplicate personalized forms or
the standard small business credit or the alternate
use a form that has someone else’s name on it.
tax.
If you had business activity in Michigan in 2001 and
2. Annualize shareholders’, officers’ and partners’
your 2001 tax is $20,000 or less, you may use the
compensation and share of business income. If any
amount of your 2001 tax liability as the estimate for
shareholder or officer has annualized allocated
your 2002 annual tax. To avoid penalty and interest,
income more than $115,000 after loss adjustment,
divide your 2001 tax by 4 (e.g., $20,000 ÷ 4 = $5,000)
or any partner has a distributive share more than
and pay that amount by each of the 2002 quarterly due
$115,000 on C-8000KP, column E; or C-8000KC,
dates. You may also divide the amount by 12 and pay
columns K or M, you are not eligible for the
it with your monthly sales, use or withholding tax
standard small business credit or the alternate tax.
payment (e.g., $20,000 ÷ 12 = $1,666.67).
If annualized allocated income or distributive share
If your previous tax year was less than 12 months,
is more than $95,000 but not more than $115,000,
annualize the previous year’s tax liability to determine
the annualized figure will determine the reduction
if estimates are due and the amount due.
to the small business credit.
3. Annualize business income to determine the credit
If you had business activity in Michigan in 2001 but
percentage used to compute the unincorporated/
reported no tax liability or were not required to file a
S-corporation credit. If the annualized adjusted
2001 return, estimated payments are not required for
business income after loss adjustment is more than
2002. If you made estimated payments during 2001,
$475,000, you are not eligible for the standard small
and later determine that your adjusted gross receipts
business credit or the alternate tax.
do not meet the filing requirements, file an annual
return to claim a refund or credit forward of your
You must also prorate the statutory exemption,
payments.
including increased exemptions. Use the SBT Statutory
Exemption Schedule (Form C-8043).
Amending estimates. If, after making payments,
you find that the estimated tax is substantially different
• Individuals - A business registered as individual
than you originally estimated, recompute the tax and
that is in business less than 12 months is not
adjust your payment in the next quarter.
required to annualize.
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