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Instructions for Form 4966
Michigan Business Tax Schedule of Flow-Through Withholding
IMPORTANT NOTE: The instructions at the top of Form 4966 direct the taxpayer to carry the total amount reported in Column E
to one of three lead forms. With changes as a result of Public Act 158 of 2016, instead follow the directions for Column E below.
UBGs: Complete one form for each member of the UBG. Enter
Purpose
the FEIN and name of the Designated Member in the Taxpayer
The purpose of this form is to report the Flow-Through Name and FEIN fields and the member’s name and FEIN to
Withholding payments made by a flow-through entity (FTE) on whom the schedule applies on the line below.
behalf of a Michigan Business Tax (MBT) filer.
Columns A and B: Identify each FTE that remitted Flow-
General Instructions Through Withholding payments on behalf of the taxpayer filing
this form by name and FEIN.
This form is intended to be used by a taxpayer that is a Unitary
Business Group (UBG) that has an ownership or beneficial Column C: UBGs only: Enter an ‘X’ in this column if the FTE
interest in an FTE that has remitted Flow-Through Withholding is in a UBG with the member that is completing this form.
payments on behalf of the taxpayer. Reported on this form will D: Enter the apportioned distributive share of the
Column
be the Flow-Through Withholding payments made by an FTE FTE’s taxable income received by the taxpayer completing this
if that FTE’s tax year ended with or within the tax year of aform.
member of the taxpayer filing this form and began before July
1, 2016. Column E: Enter the total withholding payments paid on
behalf of the taxpayer filing this form that apply to the tax year
A flow-through entity is an entity that, for the applicable tax included in this return. Included on this column would be Flow-
year, is treated as a subchapter S Corporation under section Through Withholding (FTW) payments made by FTEs whose
1362(a) of the internal revenue code, a general partnership, a tax years ended within the tax year of the taxpayer filing this
trust, a limited partnership, a limited liability partnership, or aform and began before July 1, 2016.
limited liability company that is not taxed as a C Corporation
for federal income tax purposes. Any FTE that has withheld on behalf of the taxpayer filing
this form should have provided the taxpayer the amount for its
NOTE: Flow-Through Withholding is repealed effective records.
with FTEs’ tax years beginning after June 30, 2016, under
Public Act 158 of 2016. An MBT taxpayer should not have The combined amount entered in this column should be entered
had any tax withheld on its behalf by FTEs with tax years on line 68 of Part 2B of the MBT UBG Combined Filing
beginning after June 30, 2016. Schedule for Standard Members (Form 4580) if this form is
filled out by a member of a UBG of standard taxpayers; or line
Column-by-Column Instructions 35 of the MBT UBG Combined Filing Schedule for Financial
Name and Account Number: Enter the name and Federal Institutions
(Form 4752) if this form is filled out by a member
Employer Identification Number (FEIN) of the taxpayer as of
UBG of financial institutions.
reported on page 1 of the Michigan Business Tax Annual
Return (Form 4567) or Michigan Business Tax Annual Return
for Financial Institutions (Form 4590).
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