Form 4567 - Michigan Business Tax Annual Return

Annualizing

Amended Returns Only:

Multiply each applicable amount, total gross receipts, adjusted

Line 66a: Enter payment made with original return.

business income, and shareholder, officer, and partner

Line 66b: Enter overpayment received (refund received plus

income by 12 and divide the result by the number of months

credit forward created) on the original return.

the business operated. Generally, a business is considered in

Line 66c: Add lines 65 and 66a and subtract line 66b from

business for one month if the business operated for more than

the sum.

half the days of the month. If the tax year is less than one

month, consider the tax year to be one month for the purposes

Line 68: If penalty and interest are owed for not filing

of the calculation.

estimated returns or for underestimating tax, complete

UBGs: If apportioned or allocated gross receipts before

the MBT Penalty and Interest Computation for Underpaid

intercompany eliminations (gross receipts from Form 4580,

Estimated Tax (Form 4582) to compute penalty and interest

due. If a taxpayer chooses not to file this form, Treasury will

Part 2B, line 17, column A, multiplied by the apportionment

percentage reported on Form 4567, line 11c) are less than

compute penalty and interest and bill for payment.

$350,000, enter a zero on this line. Group members reporting

Line 69: Enter the annual return penalty rate in line 69a. Add

a period of less than 12 months with this group return must

the overdue tax penalty in line 69b to the overdue tax interest

annualize their gross receipts figure on a member by member

in line 69c. Enter total in line 69d.

basis. Use each member’s number of months reported in the

group’s tax year. Once all applicable members’ gross receipts

Refer to the “Computing Penalty and Interest” section in Form

figures are annualized, add all members’ figures to determine

4600 to determine the annual return penalty rate and use the

the group’s annualized apportioned or allocated gross receipts.

following “Overdue Tax Penalty” and “Overdue Tax Interest”

worksheets.

Line 58: If the amount entered on Form 4946, line 39, is a

positive number, enter that amount on this line. Only a positive

WORKSHEET – OVERDUE TAX PENALTY

amount may be entered on this line.

A. Tax due from Form 4567, line 67 .........

NOTE: Include a completed copy of Form 4946 with this

B. Late/extension or insufficient

return regardless of whether an amount is entered on Line 58.

payment penalty percentage ................

C. Multiply line A by line B .....................

PART 4: PAYMENTS, REFUNDABLE CREDITS, AND

Carry amount from line C to Form 4567, line 69b.

TAX DUE

Line 61: Enter the total estimated taxes paid. Include all

WORKSHEET – OVERDUE TAX INTEREST

payments made on returns that apply to the current tax year.

A. Tax due from Form 4567, line 67 .........

For example, calendar year filers include money paid with the

B. Applicable daily interest percentage ..

combined returns for return periods January through December.

C. Number of days return was past due ...

D. Multiply line B by line C ....................

Line 62: Enter the total withholding payments made on your

E. Multiply line A by line D ....................

behalf by flow-through entities (FTEs). Include all withholding

Carry amount from line E to Form 4567, line 69c.

payments made on returns that apply to the tax year included

in this return. Included on this line would be Flow-Through

Withholding (FTW) payments made by flow-through entities

Line 69c: NOTE: If the late period spans more than one

whose tax years ended with or within the tax year included in

interest rate period, divide the late period into the number

this return. For example, consider an FTE partnership with a

of days in each of the interest rate periods identified in the

June 30 year end and a taxpayer that has a March 31 year end

“Computing Penalty and Interest” section in Form 4600, and

and is an owner of the FTE. The FTE will make quarterly

apply the calculations in the “Overdue Tax Interest” worksheet

FTW payments in April 2014 (for its quarter ending March

separately to each portion of the late period. Combine these

31) and July 2014 (for its quarter ending June 30), and will file

interest subtotals and carry the total to line 66c.

an annual FTW reconciliation return (Form 4918) for its year

ending June 30, 2014. Because the FTE’s tax year ends within

PART 5: REFUND OR CREDIT FORWARD

the taxpayer’s 2014-15 fiscal year, all the FTW payments for

Line 71: If the amount of the overpayment, less any penalty

that taxpayer are attributable to the taxpayer’s 2014-15 fiscal

and interest due on lines 68 and 69d is less than zero, enter the

year, regardless of the dates of the quarterly payments. Any

difference (as a positive number) on line 70. If the amount is

flow-through entity that has withheld on behalf of the taxpayer

greater than zero, enter on line 71.

should have provided the taxpayer with the amount for its

NOTE: If an overpayment exists, a taxpayer must elect a

records.

refund of all or a portion of the amount and/or designate all or

a portion of the overpayment to be used as an estimate for the

If an amount is entered on this line, complete the MBT Schedule

of Flow-Through Withholding (Form 4966) to account for the

next MBT tax year. Complete lines 72 and 73 as applicable.

Flow-Through Withholding payments received.

The amount

Line 72: If the taxpayer anticipates an MBT liability in the

entered on this line must equal the sum of the combined amount

filing period subsequent to this return, some or all of any

from Form 4966, column E.

overpayment from line 71 may be credited forward to the next

Form 4567 - Michigan Business Tax Annual Return - 2014 Page 14

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