Instructions For Form 4567 - Michigan Business Tax Annual Return (Page 2 of 11) in pdf

Taxpayer Certification

check the box in the upper-right corner of the return, and attach

a separate sheet explaining the reason for the changes. Include

A return filed by a UBG must be signed by an individual

an amended federal return or a signed and dated Internal

authorized to sign on behalf of the DM. Provide a telephone

Revenue Service (IRS) audit document, if applicable. Include

number for that individual at the DM’s office.

all forms filed with the original return, even if not amending

General Instructions

each form. Enter the figures on the amended return as they

should be.

Dates must be entered in MM-DD-YYYY format.

Do not include a copy of the original return with the

For periods less than 12 months, see the “General Information

amended return.

for Standard Taxpayers” section in Form 4600.

NOTE: A taxpayer may not amend a return to revoke the

A person that is a disregarded entity for federal income tax

election to remain taxable under the MBT. Once the taxpayer

purposes under the internal revenue code shall be classified as

makes a valid election to claim a certificated credit, the

a disregarded entity for the purposes of filing the MBT annual

taxpayer must remain in the MBT until the credit and any

return.

carryforward of that credit are exhausted.

A taxpayer, other than a UBG, that does not file a separate

Refund Only: If apportioned or allocated gross receipts are

federal return must prepare a pro forma federal return or

less than $350,000 and there is no recapture, and the taxpayer

equivalent schedule and use it as the basis for preparing its

is filing Form 4567 to claim a refund of estimates paid, skip

MBT return. For standard members of a UBG, this pro forma

lines 13 through 57 and lines 64 through 67.

requirement is addressed in Form 4580, Part 2A, and its

UBGs: If combined apportioned or allocated gross receipts of

instructions.

all members (before eliminations) are less than $350,000 and

UBGs: Complete Form 4580 before beginning Form 4567.

there is no recapture, and the taxpayer is filing Form 4567

solely to claim a refund of estimates paid, Form 4580 must also

Answer lines 1 through 8 of Form 4567 as they apply to the

DM.

be included. The designated member must complete Part 1A,

Part 2B (skip lines 18 through 65), Part 3, and Part 4 of Form

MBT Liability: Beginning January 1, 2012, a taxpayer

4580. For each member listed in Part 1A, complete Part 1B and

calculates MBT liability as the greater of MBT liability after

2A (skip lines 18 through 65). See Form 4567 for instructions

all credits, deductions, and exemptions or hypothetical CIT

on completing that form.

liability minus deductions and credits available under that

act and minus certificated credits allowed under the MBT.

Simplified Calculation

This calculation of liability requires a taxpayer to calculate

the business income and modified gross receipts tax bases

See the “2015 General Information for Standard Taxpayers”

and available MBT credits, including certificated credits,

in the Michigan Business Tax for Standard Taxpayers

deductions, and exemptions available under the MBT. Then,

(Form 4600) for instructions on “Computing the Simplified

the taxpayer will calculate the CIT comparison on the Schedule

Calculation” for eligible taxpayers.

of Corporate Income Tax Liability (Form 4946). A taxpayer is

Line-by-Line Instructions

permitted to reduce hypothetical CIT liability by all deductions

and credits which would be allowed under that tax as well as

Lines not listed are explained on the form.

the amount of certificated credit allowed under the MBT. The

Line 1: If not a calendar-year taxpayer, enter the beginning

amount of certificated credit allowed under the MBT is the

amount of nonrefundable credit needed to offset MBT liability

and ending dates (MM-DD-YYYY) that correspond to the

taxable period as reported to the IRS.

or the entire amount of a refundable credit.

Tax year means the calendar year, or the fiscal year ending

If the taxpayer’s hypothetical CIT liability would be higher

during the calendar year, upon the basis of which the tax base

than its MBT liability, the taxpayer will add the difference

of a taxpayer is computed. If a return is made for a part of a

to MBT liability on line 58 of Form 4567. This is the CIT

year, tax year means the period for which the return is made.

adjustment. If the result of both steps of the calculation is a

Generally, a taxpayer’s tax year is for the same period as is

negative number, the taxpayer will receive a refund of the

covered by its federal income tax return.

lower negative; but a nonrefundable credit cannot be used

to reduce liability below zero. Remaining nonrefundable

Line 2: Enter the complete address and, if other than the

certificated credit may be carried forward to succeeding tax

United States, enter the two-digit abbreviation for the country

years.

code. See the list of country codes in MBT Forms and

Instructions for Standard Taxpayers (Form 4600) .

For purposes of this calculation: For a Partnership or S

Corporation, business income includes payments and items

Any correspondence regarding the return filed and/or refund

of income and expense attributable to the business activity of

will be sent to the address used here. Check the new address

the partnership or S corporation and separately reported to the

box if the address used on this line has changed from the last

members.

filing. The taxpayer’s primary address in the Department of

Treasury (Treasury) files, identified as the legal address and

Amended Returns: To amend a current or prior year annual

used for all purposes other than refund and correspondence

return, complete the Form 4567 that is applicable for that year,

Instructions For Form 4567 - Michigan Business Tax Annual Return Page 2

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