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Instructions for Form 4582, Michigan Business Tax (MBT)
Penalty and Interest Computation for Underpaid Estimated Tax
Purpose less than $350,000. In addition, if your business was not in
existence in the preceding year, no safe harbor exists. In such
To compute penalty and interest for underpaying, late filing, a case, estimates must be based on the MBT liability for the
or late payment of quarterly estimates. If a taxpayer prefers current year.
not to file this form, the Department of Treasury (Treasury) • taxpayer is a farmer, fisherman, or seafarer and files the
The
will compute any applicable penalty and interest and bill the (Form 4567) by March 1, or a tentative
MBT Annual Return
taxpayer. Part 4 of this form also is used to determine and return with payment by January 15, and the final
annual
report the amount of estimates due when income is not evenly on or before April 15.
return
distributed through the tax year.
Annualizing
NOTE: Penalty and interest for late filing or late payment on
the annual return is computed separately. See the “Computing To annualize for a period of less than 12 months, multiply each
Penalty and Interest” section of the “General Information for applicable amount by 12 and divide the result by the number
Standard Taxpayers” in the MBT Forms and Instructions for of months the business operated or the person was a partner.
Standard Taxpayers (Form 4600). Generally, a business is considered in business for one month if
the business operated for more than half the days of the month.
Estimated returns and payments are required from any If the business was in operation for less than a month it is
taxpayer that expects an annual MBT liability (including considered to have been in business for 1 month.
Corporate Income Tax adjustment) of more than $800.
Exceptions are listed below. If a taxpayer owes estimated NOTE: For a taxpayer that calculates and pays estimated
tax and the estimated return with full payment is not filed or payments for federal income tax purposes pursuant to section
is filed late, penalty is added at 5 percent of tax due, for the 6655(e) of the Internal Revenue Code, that taxpayer may use the
first two months. Penalty increases by an additional 5 percent same methodology as used to calculate the annualized income
per month, or fraction thereof, after the second month, to a installment or the adjusted seasonal installment, whichever is
maximum of 25 percent. If the taxpayer made no estimated tax used as the basis for the federal estimated payment, to calculate
payments and none of the exceptions below apply, compute the the estimated payments required each quarter under this section.
interest due (Part 2) and the penalty for non-filing (Part 3). Retain the calculation for your records.
Exceptions Line-by-Line Instructions
If any of the conditions listed below apply, do not pay penalty Lines not listed are explained on the form.
and interest. businessIf a operated less than 12 months thein Do not enter data boxes in filled with Xs.
current orpreceding year, annualize figures (as applicable) to
Dates must beentered in MM-DD-YYYY format.
determine if the exceptions apply. See Form 4600 for complete
annualizing instructions. Name and Account Number: Enter name and account number
as reported on page 1 of the applicable MBT annual return
• The annual tax on the current annual return is$800 or less. Form 4567, the MBT Annual Return for Financial
(either
• The return isfor a taxable period lessof than four calendar Institutions (Form 4590), or the Insurance Company Annual
months. Return for Michigan Business and Retaliatory Taxes (Form
• The estimated quarterly payments reasonably approximate 4588)).
the tax liability incurred for each quarter and the total of all PART 1: ESTIMATED TAX REQUIRED
payments equals at least 85 percent of the annual liability. 2: Enter 85percent of the annual tax amount from line 1.
Line
Complete the Annualization Worksheet (Part 4) if the
liability is not evenly distributed through the tax year. Line 3: Enter the due date for each quarterly return. For
calendar year filers these dates are April 15, July 15, October
• The sum of estimated payments equals the annual tax on the
15, and January 15. For fiscal year filers, these dates are the
day of the 4 , 7 , 10 and 13 months after the start of
preceding year’s return, provided these payments were made 15th th th th th
in four timely equal payments and the preceding tax year’s tax
the fiscal year. For any tax year that includes an estimated tax
under the MBT Act was $20,000 or less. If the prior year’s tax
payment period of less than three months, the quarterly return
liability was reported for a period less than 12 months, this
for that period due is on the 15th day the of month immediately
amount must be annualized for purposes of both the $20,000
following the final month theof estimated tax payment period.
ceiling and calculating the quarterly payments due under this
method. See “Filing if Tax Year Is Less Than 12 Months” in Line 4: Divide the amount of the estimated tax required for
the “General Information” section of Form 4600 for more the year on line 4 by four and enter this as estimated tax for
information. Reliance on the prior year’s tax liability as a each quarter. If the business operated less than 12 months,
means to avoid interest and penalty charges is only allowed divide by the number of quarterly returns required and enter
if you had business activity in Michigan in that prior year. A this theas estimated tax for each quarter.
return must have been filed to establish the tax liability for
that prior year, even if gross receipts in the prior year were Actual Quarterly Tax . If
a taxpayer computes quarterly tax
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