S a l e s Ta x, U s e Ta x, I n c o m e Ta x W i t h h o l d i n g a n d M i c h i g a n B u s i n e s s Ta x E s t i m a t e s

Transcription

1 78 (Rev. 8-08) S l e s T x, U s e T x, I n c o m e T x W i t h h o l d i n g n d M i c h i g n B u s i n e s s T x E s t i m t e s Forms nd Instructions Cll (517) or visit Tresury s Web site t for: Existing Electronic Funds Trnsfer (EFT) ccount questions Specific ccount questions (credits, ssessments, penlty wivers, etc.) Technicl questions (txbility of items, lw chnges, etc.). Listen to ll options on the utomted phone system before mking selection. Persons who hve hering or speech impirments my cll (517) (TTY only). Write to Tresury Send correspondence to: Customer Contct Division P.O. Box Lnsing, Michign Write your ccount number on ll checks nd correspondence. Returns should be sent to the ddress on the return. Business Self Service. Check your sles, use, nd withholding tx trnsctions online t Ask questions bout your ccount by clicking on the pproprite buttons nd following the instructions. EACH BUSINESS MUST FILE AN ANNUAL RETURN FOR SALES, USE AND WITHHOLDING TAXES (FORM 165). Wht s Inside Importnt Informtion...Pge 2 Amended Returns...Pge 6 Annul Return for Sles, Use nd Withholding Txes (Form 165)... Pge 9 Mgnetic Medi Trnsmittl (Form 447)...Pge 27 Unclimed Property Informtion...Pge 32

2 Filing Requirements: You re required to file ech return, even if no tx is due. Your filing frequency is determined by the. Filing Frequency Due Dte Combined Return Annul Filer Only (1 Return): Totl tx libility of less thn $750 for clendr yer (Jn-Dec). Qurterly Filer (4 returns): Totl tx libility of $750 - $3,600 for clendr yer (Jn-Dec.) Monthly Filer (12 Returns): Totl tx libility greter thn $3,600 for clendr yer (Jn-Dec.) Sesonl filers: see Pge 6. Electronic Funds Trnsfer (EFT): Avilble to ll txpyers - trnsmissions re required on monthly bsis. Accelerted Sles nd Use Tx EFT: Required for Sles or Use Tx libility of t lest $720,000 for the preceding clendr yer. Accelerted Withholding Tx EFT: Required for Withholding Tx libility tht verges $40,000 or more ech month. Accelerted Withholding Tx EFT: Elect to py Sles nd Use Tx vi check nd return. Februry 28 (fter tx yer end) Discount Voucher EFT: ACH Debit or Credit Annul Return 20th of the month following qurter s end 20th of the following month 20th of the following month Monthly Trnsmissions: 1st pyment 20th of the month 2nd pyment lst dy of the month 3rd pyment 20th of the subsequent month Pid ccording to federl schedule Pid ccording to federl schedule 2 Importnt Informtion New Coupon Book Formt. The formt of your Tx Yer 2009 coupon book hs chnged. Your monthly/qurterly returns nd vouchers re no longer ffixed to the front of the Sles Tx, Use Tx, Income Tx Withholding nd Michign Business Tx Estimtes (Publiction 78). Enclosed with your mterils is Notice of Chnge or Discontinunce (Form 163) nd Sles Tx License (Form 164) if pplicble. New for this yer is pre-identified Annul Return for Sles, Use nd Withholding Txes (Form 165). A peel-off lbel to ffix to Form 165 is no longer included. If you file Combined Return for Michign Txes (Form 160) plese tke extr cre tht you re submitting the correct return for the period for which you re filing. Postge Chnges. Effective My 2007, the U.S. Post Office clcultes postge bsed on the weight, size nd thickness of n envelope. Consult with the Post Office before miling to void delys in delivery; items with insufficient postge will be returned to the sender by the U.S. Postl Service. Sles Tx Computtion. To determine the tx, retilers must compute the tx to the third deciml plce nd round up to whole cent when the third deciml plce is greter thn four, or down to whole cent when the third deciml point is four or less. Filing by Electronic Funds Trnsfer (EFT). Using EFT to submit your sles, use, nd withholding tx pyments elimintes the requirement to file monthly or qurterly pper returns, with the exception of Form 165. The EFT Debit Appliction (Form 2248) or EFT Credit Appliction (Form 2328) must be completed nd signed by n officer giving his or her title nd returned to Tresury. Accelerted Tx Pyments. Filers who py more thn $480,000 in withholding tx ech yer must py ccording to their federl schedule nd must py withholding txes by (EFT). We encourge you to file ll your txes by EFT s this will eliminte the need to file monthly pper returns. Filers who py more thn $720,000 in sles or use tx ech yer must py their sles nd use txes more frequently. Pyments must be mde by EFT. If this pplies to you nd you hve not been contcted by Tresury, or you would like more informtion bout ccelerted pyments, go to the Web site listed on pge 3.

3 Additionl forms nd informtion bout EFT nd Accelerted Tx pyments cn be found t Filers Who Py Once Yer. Filers with no deductions should use the simplified instructions on pge 8. Address or Business Chnges. To mke ddress or business chnges, use Form 163. Do not write the informtion on the return. Pre-Identified Returns nd Vouchers. A Combined Return for Michign Txes (Form 160), nd Discount Voucher for Sles nd Use Txes (Form 161), contin specific informtion bout your ccount tht is processed by electroniclly scnning the document. Do not chnge, copy, or use forms from nother business. If you lose your booklet of returns nd/or vouchers, contct Tresury to hve new booklet miled to you. Use the correct pre-identified form for the period for which you re filing. Mgnetic Medi/W-2 Reporting. The Stte only ccepts mgnetic W-2 reporting in the formt published by the Socil Security Administrtion. Filing nd formt instructions re provided on Trnsmittl for Mgnetic Medi Reporting of W-2s, W-2Gs, nd 1099s to the Stte of Michign (Form 447). E-Registrtion for Business Txes. If you lredy hve Federl Employer Identifiction Number (FEIN) nd wish to register for business txes, you my submit your registrtion informtion online. By completing your ppliction online, your business cn: Receive your Sles Tx License within seven dys Add txes or licenses from its registrtion. You cnnot use your Socil Security number s your FEIN. Registrtion informtion nd link to the joint Unemployment Insurnce Agency/Tresury e-registrtion site cn be found t Registering nd Filing Returns Businesses tht mke retil sles or hire employees must register their business nd file periodic returns to py the sles, use, nd withholding txes due. Tresury sets monthly, qurterly, or nnul filing frequency bsed on your tx libility. If you receive coupon book, it will hve the correct number of forms you need. Your filing frequency my chnge over time. When it does, Tresury will notify you nd send you the necessry mterils. If you file only once nnully nd your ccumulted sles, use, nd withholding txes become $750 or more, you must notify Tresury immeditely. We will chnge your filing sttus nd provide you with the pproprite tx mterils. Sles Tx You must register to py sles tx if you mke retil sles of goods in Michign even if the items you sell re not txble. 501(c)(3) or 501(c)(4) Nonprofit orgniztions. If you mke sles t retil you must register for sles tx license even if the items you sell re not txble. If your gross sles during the yer re less thn $5,000, you do not need to collect or py sles tx. However, if you collect sles tx, you must remit it even if your ggregte sles for the yer re less thn $5,000. For exmple, if you expect your gross sles to be $6,500 nd collect sles tx, but your ctul gross sles were only $4,000, you must py the sles tx collected to Tresury. See the worksheet instructions for line 5i on pge 11. If you don t collect sles tx on your sles, but your sles re $5,000 or more, you re lible for the tx on those sles. To clculte the sles tx due, see the worksheet instruction for line 5j nd divide your gross sles by See Revenue Administrtive Bulletin on Tresury s Web site or contct Customer Service t (517) Use Tx on Sles nd Rentls You must register nd py use tx if you: Are doing business in Michign but do not hve retil loction in Michign; Voluntrily collect use tx for your customers; Sell telephone, telegrph nd other lesed wire communiction services; Rent hotel nd motel rooms or other ccommodtions; or Lese tngible personl property to Michign customers from Michign or n out-of-stte loction. Use Tx on Purchses Almost every business hs use tx libility. You must py use tx on your purchses if you: Buy goods from out-of-stte, unlicensed vendors, unless vlid exemption cn be climed; Buy inventory exempt from tx for resle on which no tx is due, then remove items from tht inventory for personl or business use; or Use the items you buy for resle to mke gifts for friends nd fmily or for other personl uses. Income Tx Withholding You must register nd py income tx withholding if you: Are flow-through entity, S-corportion, prtnership, limited prtnership, limited libility prtnership, or limited libility corportion with txble income vilble for distribution to nonresident members; Py wges to n employee; or Withhold income tx mounts from other kinds of pyments (e.g., lottery winnings, insurnce pyments, retirement income, etc.). For complete withholding informtion, see Michign Income Tx Withholding Guide (Form 446). If you re self-employed nd expect your nnul tx due to be more thn $500, you must report nd py income tx qurterly using Michign Estimted Individul Income Tx Voucher (MI-1040ES). Otherwise, you my py your income tx on Michign Individul Income Tx Return (MI-1040). 3

4 Flow-through entities (S-corportions, prtnerships, limited prtnerships, limited libility compnies nd limited libility prtnerships) re required to withhold Michign income tx on the txble income vilble for distribution to nonresident members. The mount of withholding is clculted nd remitted on qurterly bsis by multiplying 4.35 percent by the shre of txble income llocble to ech member, djusted for the llowble exemption mount for qurter. Refer to RAB on Tresury s Web site for more informtion. A flow-through entity is lso required to withhold Michign income tx when one or more of the entity s members is nonresident flow-through entity. The flow-through entity in Michign shll withhold Michign income tx from ny such nonresident flow-through entity on behlf of ll of the nonresident members. Wht Form to File nd Filing Instructions With this booklet you received the following forms personlized with your business nme nd ccount number: monthly (or qurterly) returns, n nnul return, notice of chnge in your business sttus, nd discount vouchers (for sles nd use tx filers only). Some forms my not pply to you. To prepre your return ccurtely, complete your worksheet before ttempting to complete your return. Ech item on the return corresponds to line number on the worksheet. Enter your mounts crefully nd completely in the boxes provided. Do not write ny messges, credit mounts, or symbols (+, -, ( ) ) on the returns or vouchers; returns re processed by utomted equipment. Insted, use Form 163 or write to Tresury. Use Form 160 if you re pying ll the txes due t one time either on the 12th or the 20th. If you re pying only prt of your tx, use Form 161. Form 161 is pyment form only nd does not replce the return. A return is still required even if no tx is due. Complete the form nd crefully detch it. Mke sure you re sending the form for the correct filing period. Mke your check pyble to the Stte of Michign nd write SUW nd your ccount number on your check. Do not fold your check or the form. Mil the form nd check to the ddress printed on the bottom of your return or voucher. Combined Return for Michign Txes (Form 160) Monthly nd qurterly filers not registered to py by EFT must use this return. (Annul filers nd EFT filers do not use this return.) You re required to file even if no tx is due. The return nd pyment re due on or before the 20th of the month following the tx period (month or qurter). If the 20th flls on holidy or weekend, the due dte is the first business dy following the weekend or holidy. Michign Business Tx Estimtes (MBT). If pying qurterly, MBT estimtes re due on the 15th of the month following the end of the qurter. If filing MBT monthly using Form 160 or pying by EFT, monthly pyments my be filed on the 20th dy of the month. For exmple, clendr yer txpyer my file monthly MBT estimtes using Form 160 on Februry 20, Mrch 20, nd April 20 rther thn single qurterly pyment on April 15 provided the combined estimtes for those months re clculted using the instructions provided. See pge 31 for dditionl MBT informtion. Filing Instructions When you file the pper return, complete only one form nd write single check for the totl sles, use, withholding, nd Michign business txes (MBT) due using the instructions below: Sles tx. Enter mount from worksheet line 10B. Sles tx discount. Enter mount from worksheet line 11B. Be sure to include ny discount you my hve tken if you filed voucher by the 12th. Use tx (sles/rentls). Enter mount from worksheet line 10A. Use tx discount. Enter mount from worksheet line 11A. Be sure to include ny discount you my hve tken if you filed voucher by the 12th. Use tx (purchses). Enter mount from worksheet line 14b. Michign withholding. Enter mount from worksheet line 16. MBT Estimtes. Enter mount from worksheet line 19 tht you re pying with this return. Voucher pyment. Enter mount of tx pid erly from the totl pyment line of Form 161. This is not credit or subtotl line. Only enter n mount here if you filed by the 12th. Penlty nd interest. Enter mount from worksheet line 18. Totl pyment. Enter the mount of your check. Before miling your return, mke sure: Form 160 is completed using tx due figures. Gross sles figures re reported on the nnul return only. Figures entered on return correspond to the description provided for tht tx line. Subtotl mounts hve not been entered on Form 160. Account informtion chnges hve not been requested on the return. File Form 163 for these chnges. A return is submitted for ech filing period required ccording to your filing sttus. This includes return periods tht hve zero due or no ctivity. Pyment for the MBT estimte is enclosed with Form 160 if reporting your MBT estimte on tht form. All discounts hve been clculted nd reported correctly. Approprite pre-identified return is used for filing period indicted on tht return. Negtive/credit figures hve not been entered on the return. Tx pyment is enclosed with return. 11. Your ccount number is written on your check. 4

5 Discount Voucher for Sles nd Use Txes (Form 161) Form 161 is only used by filers who py prt of their tx erly to obtin discount. If you py ll your tx erly, use Form 160; you will still get your full discount. If you use Form 161 to mke n erly pyment, you must still file return, even if your blnce due is zero. Do not use Form 161 if you re monthly filer who owes less thn $1,200 in sles or use tx, qurterly filer, or txpyer who files once yer. When the tx rte incresed from 4 percent to 6 percent, the lw required 100 percent of the 2 percent increse to go to the school id fund. The dditionl 2 percent is not discounted. Therefore, discounts re clculted using 2/3 (.6667) of the sles nd/or use tx collected t the 6 percent tx rte. Filing Instructions On the first line (tx mount you re pying erly), enter the mount of ech tx (sles or use) you re pying erly. Reminder: If you re pying ll your tx (even by the 12th), use the monthly/qurterly return. On the second line (discount mount from chrt), enter the mount of discount for ech tx type tht you computed using the chrts on pge 12. On the third line (tx minus discount), subtrct the discount from the mount due nd enter here. Notice of Chnge or Discontinunce (Form 163) Use Form 163 to notify Tresury of ny chnge(s) in your ccount. You must report: Chnge in miling ddress Chnge in legl business ddress Chnge in ccount number Discontinunce of business Sle of ll or prt of business Sle of business but operting nother business Chnge of ownership, e.g., dding prtner or incorporting Addition or deletion of tx type (to dd tx, you must be registered with the Stte of Michign) Chnge in sesonlly ctive months. Annul Return for Sles, Use nd Withholding Txes (Form 165) All sles tx, use tx, nd income tx withholding filers must file Form 165 ech yer, even if no tx is due. Form 165 is the only return required from businesses tht file once yer. For txpyers who submit monthly or qurterly returns, Form 165 blnces the tx due for the yer with the monthly or qurterly pyments mde during the yer. Do not use Form 165 insted of your monthly or qurterly return. Form 165 nd pyment re due Februry 28. No extensions re grnted for filing Form 165. If You Don t Hve Returns Not hving returns does not relieve your obligtion to py timely. Pre-identified returns hve been miled for your ccount nd should be used when vilble. If pre-identified return is not immeditely vilble, Form 160 is vilble t Instructions nd miling ddress will be provided once the form is ccessed on the Web. If Internet ccess is not vilble, send your pyment with letter including your nme, ddress, phone number, ccount number, return period, nd the mount of ech tx nd pyment involved. If you re including pyment for Form 160, mil to: Deprtment Detroit, MI If you re not including pyment for Form 160, mil to: Lnsing, MI When using these options, you should include written request with your pyment, or contct the Registrtion Unit t (517) for new set of pre-identified returns to be miled to you. Lte or Insufficient Pyment Returns filed lte or without pyment of tx due re subject to penlty nd interest. Instructions for line 18 on the worksheet explin how to figure penlty nd interest on monthly or qurterly returns. Form 165 instructions for line 26 explin how to figure penlty nd interest. Additionl penlties my be chrged for filing to meet sttutory requirements. If your return is not filed, Tresury will estimte your tx nd bill you. Also, lte filing of return my result in n immedite ssessment nd legl ction my be tken to collect unpid txes, penlty, nd interest. Legl ction my include filing liens on rel nd personl property, levying on bnk ccounts or receivbles, seizure nd sle of ssets, nd cncelltion of your sles tx license. Business owners nd corporte officers my be held personlly responsible for unpid txes. Accelerted, monthly, nd qurterly txpyers who fil to file Form 165 re subject to penlty of $10 per dy from the due dte until the return is filed. Mximum penlty is $400. Sles Tx License Sles tx licenses re renewed nnully unless discontinued by the txpyer or by Tresury. You my not use the sles tx license to purchse goods nd supplies for your own use. See pge 3 for informtion bout use tx. Sles tx licensees who buy goods for resle must furnish their suppliers with completed Michign Sles nd Use Tx Certificte of Exemption (Form 3372) contining their sles tx license number or provide the sme informtion to the seller in nother formt. Txpyer s Account Number If you hd n FEIN when you registered, your Michign txpyer ccount number is your FEIN. If you did not hve n FEIN when you registered, you hve been ssigned Tresury 5

6 6 (TR) number. In some instnces, Michign Estblishment (ME) number hs been ssigned. You my hve been ssigned both n ME number nd n FEIN, or multiple ME numbers. Keep your tx ccounts ccurte by filing seprte returns for ech ccount number. Amended Monthly/Qurterly Returns NOTE: Form 160 is used to mend periods in the current yer. Use Form 165 to mend previous yers. If n mendment for the current yer results in dditionl tx due, complete the return with the corrected figures, write mended return on the top of the form, nd send your return nd pyment to the ddress listed on the form. Attch n explntion for the mendment nd write your ccount number nd the filing period on the correspondence. If the mendment results in credit within the current yer, do not chnge the figures on the return for the period being mended. Crry the credit forwrd on your worksheet nd reduce the tx due on the monthly/qurterly return. Continue until you hve n mount due nd enter nd py the mount on the next monthly/qurterly return filed. Do not enter negtive mount on Form 160 scnning equipment reds ll entries s debits (money owed). See instructions for worksheet, line 21. If the mendment results in credit crried forwrd to the next yer, use Form 165. Tresury will notify you when your credit is vilble. Amended Annul Returns NOTE: Form 165 is used to mend previous yers. Use Form 160 to mend periods in the current yer. To mend Form 165 for previous yer, complete the return with the corrected figures. Check the Amended Return box on pge 1 nd indicte the dte mended. On pge 2 of Form 165, write n explntion for the mendment. If the mendment results in dditionl tx due, send your return nd pyment to the ddress listed on the form. If the mendment results in refund or credit forwrd, send the form to: Customer Contct Division P.O. Box Lnsing, MI Tresury will notify you when your credit is vilble. W-2 Corrections If you find n error in the Michign withholding on W- 2 fter it hs been issued, do not issue corrected W-2 for less withholding thn ws on the originl W-2. This type of correction must be hndled between the employer nd the employee or by the employee on the MI Do not request refund for this type of error using n mended Form 165. If the error ws for more withholding thn ws on the originl W-2, issue corrected W-2 nd send copy to Tresury. The corrected form should be clerly mrked Corrected by Employer. Gsoline Retilers nd Wholeslers Complete Form 160 or 161 first; then crry forwrd your pyment figure to Gsoline Retiler Supplementl Report (Form 2189) or to Gsoline Supplier nd Wholesle Distributor Prepid Sles Tx Report (Form 429), nd complete. Attch your supplementl report to your return. Write your business nme nd ccount number on ll supplementl reports to ensure you re credited properly for prepid sles tx on gsoline. The credit will reduce the mount of tx you will py with your monthly or qurterly tx returns. If you hve strt-up lon from December 1983, you my pply ny credit bove your tx due or you my complete Refund Request for Prepid Sles Tx on Gsoline (Form 3891). When prepring Form 165, include the gsoline retiler nd wholesler prepyments on line 13b. Sesonl Txpyers You must file return for ech of the sesonlly ctive months shown on your returns, even if no tx is due. Also, if you mke sles or py wges during the months when you re normlly closed, you must file returns for those months. Sesonlly ctive months my be chnged by completing Form 163. Returns Due After Selling or Quitting Business All txpyers must submit finl monthly or qurterly return within 15 dys fter the dte of selling or quitting business. Your finl nnul return is due by Februry 28. Contct the Tx Clernce Unit t (517) to confirm ll debts hve been stisfied. Instructions nd Worksheets This booklet includes instructions nd worksheets to clculte your tx due nd prepre returns for sles, use, nd withholding txes. Most txpyers collect nd py tx t only the 6 percent rte nd don t need worksheet with 4 percent column. Txpyers who still collect t the 4 percent rte will receive different set of worksheets nd n nnul return with both the 4 percent nd 6 percent columns. If you don t receive the worksheets nd need them, contct the Customer Service Line t (517) Keep the completed worksheets for your records nd for possible udit. Do not file your worksheet in plce of filing monthly, qurterly, or nnul return. Filing the wrong form delys crediting your ccount. Generl Instructions Annul Return (Form 165) Filing Requirements You must file Form 165 if you re registered for sles, use or income tx withholding in the Stte of Michign. Monthly nd qurterly filers must file Form 165 on clendr-yer bsis (not your fiscl yer). Txpyers who hve multiple ctive ccount numbers (ME nd/or FEIN) in tx yer re required to file seprte nnul returns for ech ccount number ssigned. Identify the registered tx types for ech ccount number nd include only those tx figures on the corresponding nnul return. If you

7 hve n outside pyroll or ccounting gency, coordinte this filing responsibility with them. If during the yer your ccumulted sles, use nd withholding txes become $750 or more, you must notify Tresury to chnge your filing sttus nd provide you with the pproprite tx returns. Form 165 must be signed nd dted by the txpyer or the txpyer s uthorized gent. This my be the owner, prtner, corporte officer or officer s gent or ssocition member, officer, or gent. No other person my sign for the txpyer in the txpyer s signture box. W-2 Wge nd Tx Sttements You must furnish W-2 sttements to your employees by Jnury 31. Refer to the W-2 Corrections section on pge 6 for mending W-2 sttements. Employers with Michign employees must report W-2 informtion to Michign on or before Februry 28 by enclosing W-2 forms with Form 165. A 1099-MISC must be filed for services performed in the Stte of Michign, regrdless of the stte of residence of the pyee, whether there ws withholding or not. Txpyers not registered for withholding should file correspondence with the business ccount number nd mil to: Lnsing, MI If you hve 250 or more Michign employees, you must report using mgnetic tpes or diskettes. If you hve fewer thn 250 employees, you my report using mgnetic medi or using the Stte copy of the federl W-2. See pge 27 for specifics bout mgnetic reporting. Mil your nnul return nd ll W-2 informtion to: WITH PAYMENT: Deprtment P.O. Box Detroit, MI WITHOUT PAYMENT: Lnsing, MI Address your tpes or disks to: Return Processing Division Mgnetic Medi Unit - SUW Lnsing, MI ANNUAL RETURN (Form 165): Line-by-Line Instructions Note: If you py only income tx withholding or file nnully nd do not hve deductions, use the simplified instructions on pge 8. Sles nd Use Tx Lines 1 through 9: Monthly nd qurterly filers, in ech column dd the entries from ll your worksheets for the yer nd enter the totls on the corresponding line on Form 165. Txpyers who file nnully, follow the line-by-line instructions for the monthly nd qurterly worksheet, beginning on pge 11. Line 10: Add lines 8 nd 9 nd enter the totls in ech column. Line 11: Txpyers filing monthly or qurterly enter the totl discounts llowed for the yer in ech column. Totl the mounts from the monthly or qurterly worksheet line 11 in ech column. Include discounts from Form 2189 nd Vehicle Deler Supplementl Report (Form 92). Txpyers filing nnully receive discount if the return is filed timely. The discount pplies only to 2/3 (.6667) of the sles nd/or use tx collected t the 6 percent tx rte. Use Chrt 2 on pge 12 to figure your discount. If you opened for business lte in the yer or ended your business erly in the yer, the $6 per month discount is llowed only for the months you were in business. No discount is llowed if the return is filed fter Februry 28. Line 12: Totl tx due. Subtrct line 11 from line 10 nd enter the differences in ech column. Line 13: Enter the totl mount of ech tx pid fter discounts during the report yer. Include the mount from your gsoline retil or gsoline supplier nd wholesle reports. Do not include ny penlties or interest pid. This mount should be the totl of ll pyments for the yer from your monthly/qurterly worksheet, line 12. Use Tx on Purchses Only Line 14: Enter purchses which were txble t the 6 percent rte. Multiply by 0.06 nd enter the tx due on the line t the fr right. Line 15: Enter the use tx on purchses pid during the yer. This mount should be the totl of ll pyments for the yer from your monthly/qurterly worksheet line 14b. Income Tx Withholding Line 16: Enter your gross Michign pyroll nd other txble compenstion for the yer, nd ny mount from box 7 on the Sttement of Michign Income Tx Withheld for Nonresidents from Flow-Through Entities (Form 4119). Line 17: Enter the number of W-2 sttements, 1099-MISCs, plus 1099s, 1099-Rs nd Form 4119, with Michign withholding you re submitting for the yer. Line 18: Enter the totl Michign income tx withheld for the yer s shown on the W-2 nd 1099-MISC sttements nd from Box 8 of Form Line 19: Enter the totl Michign income tx withheld tht ws pid on your monthly or qurterly returns. This should be the totl of line 16 on ll your worksheets for the yer. (Do not include penlty nd interest.) 7

8 Summry Line 20: Totl the txes due. Add lines 12A, 12B, 14B, nd 18 nd enter the totl here. Line 21: Totl txes pid. Add lines 13A, 13B, 15, nd 19 nd enter the totl here. Line 22: If line 21 (tx pid) is greter thn line 20 (tx due), enter the difference (overpyment) here. Line 23: Enter the mount of the overpyment you wnt pplied to your monthly or qurterly return. Tresury will notify you when your credit is vilble. Line 24: Enter the mount of overpyment from line 22 you wnt refunded to you. Refunds will not be mde in mounts of less thn $1. Line 25: If line 21 (tx pid) is less thn line 20 (tx due), enter the dditionl tx due. Py ny mount $1 or over with this return. Line 26: If your return is lte, compute the penlty nd interest due. If no tx is due on line 25, the penlty is $10 per dy to mximum of $400. If you hve tx due on line 25, the penlty is s follows: 5 percent of the tx due (line 25) if the lte pyment is received within 2 months of the due dte. 5 percent of the tx due for ech subsequent month, or prt thereof, the tx is not pid. Mximum penlty is 25 percent of tx due. Interest is due t the rte of 1 percent bove the prime interest rte from the dy the tx is due until it is pid. The prime rte will be djusted Jnury 1 nd July 1. A penlty nd interest clcultor is vilble on Tresury s Web site t Line 27: Amount due with this return. Add lines 25 nd 26. Mke check pyble to the Stte of Michign. Write your ccount number nd SUW on your check. Do not py if the mount due is less thn $1. ANNUAL RETURN (Form 165) Simplified Instructions for Annul Filers With No Deductions If you file nnully (no qurterly or monthly pyments) nd hve no llowble deductions, use the instructions below to complete Form 165 fster. If you re not registered for sles or use tx, skip to step 9. Step 1: Complete lines 1 through 4. Step 2: Crry mount from line 4 to line 6. Step 3: Multiply the mount on line 4 by the tx rte (6 percent), nd enter the result on line 8. Step 4: Enter on line 9 ny mount you collected in excess of line 8. For exmple, if you entered $40 on line 8 but ctully collected $50, enter $10 on line 9. Step 5: Add lines 8 nd 9 nd enter on line 10. Step 6: Line 11 is your discount mount. You re eligible for discount if you py the tx due by Februry 28. The discount pplies only to 2/3 (0.6667) of the sles nd/or use tx collected t the 6 percent tx rte. Use Chrt 1 below to figure your discount nd enter it on line 11. If you were only open prt of the yer, multiply the number of months you were open by $6. Compre tht ginst the discount mount you figured in Chrt 1. Enter the smller of these two numbers on your worksheet, line 11. Step 7: Unless you pid tx during the yer, line 13 should be zero. Step 8: If you bought ny goods during the yer from n outof-stte vendor nd did not py sles tx on them or if you took items from inventory for personl or business use, complete lines 14 nd 15. See pge 3 for more informtion bout the use tx. Step 9: If you hve employees, complete lines 16 through 19. If you hve no employees, enter zero on line 19. Step 10: Summry. Complete lines 20 nd 21. Enter the difference on line 25. If pying lte, enter ny penlty or interest due on line 26 nd totl your mount due on line 27. Step 11: Trnsfer the informtion from your worksheet to Form 165. Keep your worksheet for your records. Mke your check pyble to the Stte of Michign. Write your ccount number nd SUW on your check. If you re filing Form 165 with ny other remittnce form, send seprte check for ech form. WITH PAYMENT: Deprtment P.O. Box Detroit, MI WITHOUT PAYMENT: Lnsing, MI Chrt 1 If your tx due is less thn $ Amount of tx due... $ Discount Amount = $ Enter on worksheet, line 11. x If your tx due is $108 or more, enter $72 on worksheet, line 11. 8

9 Line-by-Line Instructions Monthly nd Qurterly Worksheets Begin on line 15 if filing withholding only. Go to pge 7 if you file nnully. Columns not referenced on specific lines indicte they re not pplicble. Line 1, Gross Sles: Column A, Use Tx on Sles nd Rentls: This line is for out-of-stte retilers who do not hve retil stores in Michign. Enter totl sles of tngible personl property including csh, chrge, nd instllment trnsctions. Column B, Sles Tx: Enter totl of ll sles of tngible personl property including csh, chrge, nd instllment trnsctions. Line 2, Rentls, Column A: Lessors of tngible personl property who py use tx on rentl receipts must enter rentl income. Also enter totl hotel nd motel room rentls including ssessments imposed under the Convention nd Tourism Act, the Convention Fcility Development Act, the Regionl Tourism Mrketing Act, or the Community Convention or Tourism Mrketing Act. See Line 5i for instructions on deducting the ssessments from rentls. Line 3, Communiction Services, Column A: Enter gross income from telecommunictions services. Allowble Deductions: Use lines 5-5j to deduct nontxble sles you mde from gross sles. Deductions tken for tx exempt sles must be substntited in your records. For lines 5 nd 5b, s well s items 3 through 5 under line 5i, you must obtin completed copy of Form 3372, or the sme informtion in nother formt, from the purchser. Line 5, Resle: Enter sles which will be resold to others. Line 5b, Industril Processing/Agriculturl Producing: Enter sles of tngible personl property nd services to persons entitled to exemption s industril processors or griculturl producers. The property sold must be for direct use in producing product for eventul sle. Line 5c, Interstte Commerce: Enter sles mde in interstte commerce. To clim such deduction, the property or service must be delivered by you to the purchser out of stte. Property trnsported out of stte by the purchser does not qulify under interstte commerce. You must keep documenttion of shipment out of stte to support this deduction. Line 5d, Exempt Services: Enter chrges for nontxble services billed seprtely, such s repir or mintennce, if these chrges were included in gross receipts on line 1. Any costs incurred before the property is trnsferred to the buyer (including shipping, hndling, nd delivery chrges) re not considered services nd re subject to tx. Line 5e, Tx Pid to the Secretry of Stte, Column B: Enter sles by licensed vehicle delers (not including tx) of vehicles nd mobile homes on which you pid sles tx to the Secretry of Stte. Line 5f, Food for Humn/Home Consumption: Enter totl of retil sles of grocery-type food, excluding tobcco nd lcoholic beverges. Prepred food is subject to tx. Line 5g, Bd Debts: You my deduct the mount of bd debts if the bd debt ws documented s txble trnsction in your records. Line 5h, Michign Motor Fuel or Diesel Fuel Tx, Column B: Retilers my deduct the Michign motor fuel txes tht were included in gross sles on line 1 nd pid to the Stte or the distributor. Line 5i, Other Deductions: Include deductions not covered in items 5 through 5h on this line. Exmples of deductions re: Assessments imposed under the Convention nd Tourism Act, the Convention Fcility Development Act, the Regionl Tourism Mrketing Act, or the Community Convention or Tourism Mrketing Act. Hotels nd motels my deduct the ssessments included in gross sles nd rentls provided use tx on the ssessments ws not chrged to the customers. Credits llowed to customers for voluntry return of merchndise previously sold nd originlly subject to sles tx. Credit, including tx chrged, must be grnted to the customer. If returned for full credit within four yers, full credit of tx should be grnted. If returned for prtil credit within 180 dys or within seller s stted refund policy, whichever is sooner, prtil refund of tx must be grnted. Repossessions re not llowble deductions. Direct sles to the United Sttes Government, Stte of Michign or its politicl subdivisions. Direct sles not for resle to certin nonprofit gencies, churches, schools, hospitls nd homes for the cre of children nd the ged, provided such ctivities re nonprofit nd pyment is directly from the funds of the exempt orgniztion. Sles to contrctors of mterils which will become prt of finished structure for qulified exempt nonprofit hospitl, qulified exempt nonprofit housing entity or church snctury. The purchser will provide Michign Sles nd Use Tx Contrctor Eligibility Sttement (Form 3520). See Revenue Administrtive Bulletin Sles to compnies who clim direct pyment of use tx to the Stte of Michign. Such compnies must hve sles tx license or use tx registrtion, nd hve letter from Tresury specificlly grnting direct pyment uthority. You must retin copy of your customer s direct py uthority letter to support future exemption clims. Purchses for resle or lese on which sles or use tx ws pid to the supplier. Qulified nonprofit orgniztions my tke deduction of their sles if totl sles re less thn $5,000 nd you did not collect sles tx from your customers. If totl sles re $5,000 or more, the entire mount of sles is subject to tx. For qulifictions, see Revenue Administrtive Bulletin Line 5j. Tx included in gross sles. Column B: Complete this line only if you hve tx included in your gross sles. Subtrct the sum of lines 5 through 5i from the gross sles in ech column. Divide the result by nd enter on line 5j. Line 5k, Totl Deductions: Enter totl of lines 5 through 5j. 11

10 Line 6: Subtrct line 5k from line 4 to determine the sles subject to tx. Line 8: Multiply the mount on line 6 by 6 percent (0.06) nd enter on line 8. Line 9: If you collected more tx thn the mount on line 8, enter the difference on line 9. NOTE: Annul txpyers Go to line 10 under instructions for filing nnul return on pge 7. Line 10, Totl Tx Due: Add lines 8 nd 9 nd enter totl. If line 10 is zero or you re not pying by the 20th, skip line 11 (discounts). Enter the mount from column B on the sles tx line on your return. Enter the mount from column A on the use tx (sles/rentls) line on your return. Line 11: Use Chrt 2 to figure your discount (discounts re not llowed on lte pyments). Enter the mount from your worksheet on the discount line of Form 161 or on the pproprite line for sles or use tx discount on Form 165. Enter seprte mounts for use tx nd sles tx. The mximum discount for pyments mde between the 12th nd the 20th is $15,000 per tx. If you pid prt of your tx on or before the 12th, the totl combined discount llowed is $20,000 per tx. If you were open for business for only prt of month or qurter nd you tke the minimum discount, multiply the discount by the number of dys you were open, then divide the result by the number of dys in the period (30 or 90). Use Tx - Purchses Only: See Pge 3. Line 14A: Enter purchses which were txble t the 6 percent rte. Line 14B: Multiply line 14 by 0.06 nd enter the tx due nd on the use tx (purchses) line on your return. Line 15: Enter gross Michign pyroll for the month or qurter. Line 16: Enter income tx withheld here nd on the withholding line on Form 165. Summry Line 17: Add lines 13, 14b, nd 16 nd enter the totl. Line 18: Penlty nd interest re chrged for lte pyment of tx. The penlty is 5 percent of the tx due if the lte pyment is received within the first two months of the due dte. For ech subsequent month, or prt thereof, the penlty increses by n dditionl 5 percent of the tx due. The mximum penlty is 25 percent. Interest is chrged dily t rte of 1 percent bove the prime rte. The interest rte is djusted on Jnury 1 nd July 1. Exmple: If the pyment or return ws due Februry 20 but is not received until June 7, clculte the penlty s follows: 2/21 to 4/20 (2 months) = 5% 4/21 to 5/20 (1 month) = 5% 5/21 to 6/7 (prtil month) = 5% Totl penlty = 15% In ddition, dd interest t 1 percent bove the prime rte s computed on the totl tx due shown on line 17. A penlty nd interest clcultor is vilble on Tresury s Web site. Line 19, Michign Business Tx Estimte: See pge 31 for informtion on filing combined estimte. Line 20: Add lines 17, 18, nd 19 nd enter totl. DO NOT ENTER CREDIT FIGURES ON THE RETURN. Using credit figures on the return my result in tx ssessment. Crry credits forwrd on your worksheet insted. Line 21: Enter ny credits for your ccount here. Line 22: Subtrct line 21 from line 20. This is the mount of tx due. Enter this mount on Form 160 nd mke your check pyble for this mount. IMPORTANT: Reduce ech of the txes reported on Form 160 to reflect the mount of the credit. If the mount on worksheet line 22 is less thn zero, enter zero on Form 160. Do not put mounts on ny other line. Crry the rest of the credit forwrd to the worksheet for the next filing period. LINE 11, FIGURING YOUR DISCOUNT: You cn receive discount by filing your sles or use (on sles nd rentls) txes erly or timely. Any portion of txes pid by the 12th of the month re discounted 3/4 of 1%. Txes pid between the 12th nd the 20th (including the 20th), re discounted 1/2 of 1%. Discounts pply only to 2/3 (.6667) of the sles nd/or use tx collected t the 6% tx rte. Review the instructions below to see if you need to do ny clcultion. If you do, use Chrt 2 to figure your discount. Complete the chrt once for use tx nd once for sles tx. Monthly Filers: If your tx is less thn $9, complete Chrt 2. If pying by the 12th nd your tx is $9 to $1,200, enter $6 on the worksheet, line 11. If greter thn $1,200, complete Chrt 2. If pying by the 20th nd your tx is $9 to $1,800, enter $6 on the worksheet, line 1. If more thn $1,800, complete Chrt 2. Qurterly Filers: If your tx is less thn $27, complete Chrt 2. If pying by the 12th nd your tx is $27 to $3,600, enter $18 on the worksheet, line 11. If your tx is more thn $3,600, complete Chrt 2. If pying by the 20th nd your tx is $27 to $5,400, enter $18 on the worksheet, line 11. If your tx is more thn $5,400, complete Chrt 2. CHART 2 Pying by the 12th (Mximum Discount: $20,000) Pying by the 20th (Mximum Discount: $15,000) Amount you re pying erly... Amount you re pying timely... x.6667 x.6667 STOP. See below. *... STOP. See below. *... x.0075 x.005 Discount Amount. Enter on worksheet, line 11 Discount mount. Enter on worksheet, line * If you py your tx monthly nd this mount is $6 or less, enter this mount on your worksheet, line 11. If you py your tx qurterly nd this mount is $18 or less, enter this mount on your worksheet, line 11. All others, finish the chrt. 12

11 MICHIGAN BUSINESS TAX ESTIMATES Michign Business Tx (MBT) is tx on Michign business income nd modified gross receipts (except for insurnce compnies nd finncil institutions). MBT is due only if txpyer s pportioned or llocted gross receipts re $350,000 or greter for the tx yer. As convenience to txpyers, you my py your MBT qurterly estimtes with your sles, use, nd withholding (SUW) txes return. If you choose this option, you need to file only one form nd write one check for ll the txes you py. Who must file? Txpyers with n nnul MBT libility expected to exceed $800 must mke estimted pyments. Txpyers include single person or entity nd unitry business group. A unitry business group mens group of United Sttes persons, other thn foreign operting entity, one of which owns or controls, directly or indirectly, more thn 50 percent of the ownership interests with voting or comprble rights of the other United Sttes persons nd tht () hs business ctivities resulting in flow of vlue between or mong persons in the group, or (b) hs business ctivities tht re integrted with, re dependent upon, or contribute to ech other. For clendr yer txpyer, qurterly returns re due the 15th dy of April, July, October nd Jnury. For fiscl yer filers, qurterly returns re due the 15th dy of the first month fter ech qurter. Any qurter less thn three months is due on the 15th dy of the month immeditely following the finl month of the estimte period. You my mke your pyments with either of the following returns: Michign Business Tx Qurterly Return (Form 4548), OR Combined Return for Michign Txes (Form 160). If filing monthly using Form 160, monthly pyments my be filed on the 20th dy of the month. For exmple, clendr yer txpyer my file monthly MBT estimte using Form 160 on April 20 rther thn April 15 so long s the estimte for tht month is consistent with the instructions below. For txpyers required to mke remittnces by EFT nd not using Form 160, MBT estimtes remin due on the 15th dy of the month following the finl month of the qurter. The estimted MBT for the qurter must lso resonbly pproximte the libility for the qurter. How much should I py? Your estimted MBT pyment my be computed on the ctul business income tx bse nd modified gross receipts tx bse of the period combined. Enter the estimted MBT pyment mount on line 19 of the monthly worksheet in this booklet. No interest will be chrged if pyments re mde on time nd; the sum of the estimted pyments equls t lest 85 percent of your nnul libility, nd the mount of ech pyment resonbly pproximtes the tx libility incurred during the period or if the sum of estimted pyments equls the nnul tx on the preceding yer s MBT return nd the preceding yer s tx ws $20,000 or less. How do I estimte my libility? For txpyers with pportioned or llocted gross receipts of $350,000 or more, the MBT is comprised of 4.95 percent tx on business income nd 0.8 percent tx on modified gross receipts. A credit phses in tx libility for txpyers with gross receipts between $350,000 nd $700,000. Insurnce compnies nd finncil institutions py different txes with different tx bses, without regrd to ny filing threshold. Plese refer to the Michign Business Tx Act (MCL et seq.) for further instructions. For most txpyers, the business income tx bse is tht prt of federl txble income derived from business ctivity, with certin djustments. Additions (to the extent deducted or excluded from federl txble income) include: Interest income nd dividends derived from obligtions or securities of sttes other thn Michign Txes on or mesured by net income nd the tx imposed under the MBT Any crrybck or crryover of net operting loss Loss ttributble to nother txble entity Roylty, interest, or other expense pid to person relted to the txpyer by ownership or control for the use of n intngible sset if the person is not included in the txpyer s unitry business group. Subtrctions (to the extent included in federl txble income) include: Dividends nd roylties received from persons other thn United Sttes persons nd foreign operting entities Income ttributble to nother txble entity Interest income derived from United Sttes obligtions Ernings tht re net ernings from self-employment, s defined under IRC Section 1402, of the txpyer or prtner or limited libility compny member of the txpyer except to the extent tht those net ernings represent resonble return on cpitl. The modified gross receipts tx bse consists of gross receipts less purchses from other firms. Gross receipts mens the entire mount received by txpyer from ny ctivity crried on for direct or indirect gin, benefit, or dvntge to the txpyer or to others, with certin specific exceptions. Purchses from other firms mens: Inventory cquired during the tx yer Deprecible ssets cquired during the tx yer To the extent not included in inventory or deprecible ssets, mterils nd supplies, including repir prts nd fuel Other expenses for stffing compnies nd certin construction contrctors. Some txpyers my find tht business income, gross receipts, nd purchses from other firms my be pproximted using monthly profit nd loss sttements. 31

12 For more comprehensive informtion regrding the MBT, visit the MBT Web site t This Web site contins informtion txpyers my find helpful in determining their estimted tx libility. Note, relince on informtion found on the Web site does not protect txpyer from imposition of interest nd penlties should the sum of the txpyer s estimted pyments not equl 85 percent of the txpyer s MBT libility for the 2008 tx yer. How do I report these pyments? Regrdless which form you use to file estimted MBT pyments, report ll MBT estimted pyments on your nnul MBT return. An nnul return is required only from txpyers whose pportioned or llocted gross receipts re $350,000 or greter. If your gross receipts re below this filing requirement but you mde estimted pyments during the tx yer, file return to clim refund of your pyments. For more informtion, see the Michign Business Tx Act, MCL et seq. Revenue Administrtive Bulletins A Revenue Administrtive Bulletin (RAB) is directive issued by Tresury. Its purpose is to promote uniform ppliction of tx lws throughout the Stte nd provide informtion nd guidnce to txpyers. An RAB sttes the officil position of Tresury, hs the sttus of precedent in the disposition of cses unless nd until revoked or modified, nd my be relied on by txpyers in situtions where the fcts, circumstnces, nd issues presented re substntilly similr to those set forth in the RAB. A txpyer must consider the effects of subsequent legisltion, regultions, court decisions, nd RABs when relying on n RAB. See RAB for more informtion. To ccess copy of prticulr RAB, go to Unclimed Property Reporting for Businesses Michign s Uniform Unclimed Property Act (Public Act 29 of 1995) requires holders of unclimed property to report nd remit property belonging to owners who cnnot be locted or for whom there is no known ddress. Every business tht hs uncshed checks (pyroll, vendor, dividends, etc.) must file report nd turn the funds over to the Michign Deprtment of Tresury, Unclimed Property Division. Unclimed property could lso include csh, deposits, interest, stocks or contents from sfe deposit boxes. Section 31 (2) of the Uniform Unclimed Property Act gives the Stte Tresurer the uthority to conduct unclimed property exmintions to determine complince with the Act. Who Must Report. Every individul, prtnership, or corportion who hs unclimed property belonging to someone whose lst known ddress is in Michign must report. If the owner s lst known ddress is in nother stte or country nd the holder does not report under the provisions of tht stte or country, then report those interests to Michign. Dormncy Periods. Generlly, property in your custody tht belongs to someone else nd hs gone unclimed for five yers must be reported. However, dormncy periods will vry bsed on the type of property. Visit for more detiled informtion bout dormncy periods. Reporting Due Dte. Holder reports re due by November 1 ech yer nd must contin ll items considered unclimed s of June 30. Enclose pyment with the report to cover the mount reported. If you hve unclimed property nd fil to py or deliver it timely to the Stte of Michign, you my be lible for interest t the current monthly rte of one percentge point bove the djusted prime rte on the vlue of the property. Civil penlties my lso pply for not filing. Climing Funds. To check if funds re being held for you, your fmily or your business entity, visit For More Informtion. Visit Tresury s Web site or write to Unclimed Property Division, Michign Deprtment of Tresury, P.O. Box 30756, Lnsing, MI 48909, or cll (517)