Michigan-2009-HB4496-Engrossed

HB-4496, As Passed Senate, April 2, 2009

SENATE SUBSTITUTE FOR

HOUSE BILL NO. 4496

A bill to amend 2007 PA 36, entitled

"Michigan business tax act,"

by amending section 501 (MCL 208.1501).

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 501. (1) A taxpayer that reasonably expects liability for

the tax year to exceed $800.00 shall file an estimated return and

pay an estimated tax for each quarter of the taxpayer's tax year.

(2) For taxpayers on a calendar year basis, the quarterly

returns and estimated payments shall be made by April 15, July 15,

October 15, and January 15. Taxpayers not on a calendar year basis

shall file quarterly returns and make estimated payments on the

appropriate due date which in the taxpayer's fiscal year

corresponds to the calendar year.

(3) ~~The~~ Except as otherwise provided under this subsection,

the estimated payment made with each quarterly return of each tax

year shall be for the estimated business income tax base and

modified gross receipts tax base for the quarter or 25% of the

estimated annual liability. The second, third, and fourth estimated

payments in each tax year shall include adjustments, if necessary,

to correct underpayments or overpayments from previous quarterly

payments in the tax year to a revised estimate of the annual tax

liability. For a taxpayer that calculates and pays estimated

payments for federal income tax purposes pursuant to section

6655(e) of the internal revenue code, that taxpayer may use the

same methodology as used to calculate the annualized income

installment or the adjusted seasonal installment, whichever is used

as the basis for the federal estimated payment, to calculate the

estimated payments required each quarter under this section. A

penalty for underpayment of an estimated tax under this act shall

not be assessed for a tax year that ends before December 1, 2009 if

the taxpayer paid 75% of the tax due under this act for the tax

year.

(4) The interest provided by this act shall not be assessed if

any of the following occur:

(a) If the sum of the estimated payments equals at least 85%

of the liability and the amount of each estimated payment

reasonably approximates the tax liability incurred during the

quarter for which the estimated payment was made.

(b) For the 2009 tax year and each subsequent tax year, if the

preceding year's tax liability under this act was $20,000.00 or

less and if the taxpayer submitted 4 equal installments the sum of

which equals the immediately preceding tax year's tax liability.

(5) Each estimated return shall be made on a form prescribed

by the department and shall include an estimate of the annual tax

liability and other information required by the state treasurer.

The form prescribed under this subsection may be combined with any

other tax reporting form prescribed by the department.

(6) With respect to a taxpayer filing an estimated tax return

for the taxpayer's first tax year of less than 12 months, the

amounts paid with each return shall be proportional to the number

of payments made in the first tax year.

(7) Payments made under this section shall be a credit against

the payment required with the annual tax return required in section

505.

(8) If the department considers it necessary to insure payment

of the tax or to provide a more efficient administration of the

tax, the department may require filing of the returns and payment

of the tax for other than quarterly or annual periods.

(9) A taxpayer that elects under the internal revenue code to

file an annual federal income tax return by March 1 in the year

following the taxpayer's tax year and does not make a quarterly

estimate or payment, or does not make a quarterly estimate or

payment and files a tentative annual return with a tentative

payment by January 15 in the year following the taxpayer's tax year

and a final return by April 15 in the year following the taxpayer's

tax year, has the same option in filing the estimated and annual

returns required by this act.

Enacting section 1. This amendatory act is retroactive and is

effective for tax years beginning after December 31, 2007.