Bill Text: MI HB4960 | 2011-2012 | 96th Legislature | Introduced

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Bill Title: Income tax; returns; filing threshold, returns, and estimated payments required under corporate income tax; clarify. Amends sec. 681 of 1967 PA 281 (MCL 206.681).

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2011-10-19 - Re-referred To Committee On Tax Policy [HB4960 Detail]

Download: Michigan-2011-HB4960-Introduced.html

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HOUSE BILL No. 4960

 

September 13, 2011, Introduced by Rep. Walsh and referred to the Committee on Tax Policy.

 

     A bill to amend 1967 PA 281, entitled

 

"Income tax act of 1967,"

 

by amending section 681 (MCL 206.681), as added by 2011 PA 38.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 681. (1) A Except as otherwise provided under this

 

section, 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) Except as otherwise provided under this subsection, the

 

estimated payment made with each quarterly return of each tax year

 

shall be for the estimated corporate income tax base that is

 

applicable to the taxpayer under chapter 11, 12, or 13 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. The interest and penalty provided by this part 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 2013 tax year and each subsequent tax year, if the

 

preceding year's tax liability under this part 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.

 

     (4) 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.

 

     (5) 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. A taxpayer with a tax year

 

of less than 4 months is not required to file an estimated tax

 

return or remit estimated payments.

 

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

 

the payment required with the annual tax return required in section

 

685.

 

     (7) 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.

 

     (8) 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 part.

 

     Enacting section 1. This amendatory act takes effect January

 

1, 2012.