Bill Text: MI HB4965 | 2011-2012 | 96th Legislature | Introduced
Bill Title: Income tax; administration; filing and reporting the withholdings by flow-through entities and certain persons; clarify and clean up. Amends sec. 711 of 1967 PA 281 (MCL 206.711).
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2011-10-19 - Re-referred To Committee On Tax Policy [HB4965 Detail]
Download: Michigan-2011-HB4965-Introduced.html
HOUSE BILL No. 4965
September 13, 2011, Introduced by Rep. Nesbitt and referred to the Committee on Tax Policy.
A bill to amend 1967 PA 281, entitled
"Income tax act of 1967,"
by amending section 711 (MCL 206.711), as added by 2011 PA 38.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec.
711. (1) Every employer, flow-through entity, eligible
production
company, casino licensee, race meeting licensee, and
track
licensee person required by this part to deduct and withhold
taxes
for a tax year on compensation, share of income available for
distribution,
winnings, or payoff on a winning
ticket shall furnish
to each employee, member, or person with winnings or a payoff on a
winning ticket subject to withholding under this part on or before
January 31 of the succeeding year a statement in duplicate of the
total
compensation, share of income available for distribution,
winnings, or payoff on a winning ticket paid during the tax year
and the amount deducted or withheld. However, if employment is
terminated
before the close of a calendar year by an employer who
goes
out of business or permanently ceases to be an employer in
this
state, or a flow-through entity, eligible production company,
casino
licensee, race meeting licensee, or track licensee a person
that
goes out of business or permanently
ceases to be a flow-
through
entity, eligible production company, casino licensee, race
meeting
licensee, or track licensee before the close of a calendar
year,
exist, then the statement required by this subsection shall
be
issued within 30 days after the last compensation, share of
income
available for distribution, winnings,
or payoff of a winning
ticket is paid. A duplicate of a statement made pursuant to this
section and an annual reconciliation return, MI-W3, shall be filed
with the department by February 28 of the succeeding year except
that
an employer, flow-through entity, eligible production company,
casino
licensee, race meeting licensee, and track licensee who a
person
that goes out of business or
permanently ceases to be an
employer,
flow-through entity, eligible production company, casino
licensee,
race meeting licensee, and track licensee exist shall
file the statement and the annual reconciliation return within 30
days
after going out of business or permanently ceasing to be an
employer,
flow-through entity, eligible production company, casino
licensee,
race meeting licensee, and track licensee exist. A flow-
through entity that has withheld taxes on distributive shares of
business income reasonably expected to accrue shall file an annual
reconciliation return with the department no later than the last
day of the second month following the end of the flow-through
entity's federal tax year. The department may require the flow-
through entity to file an annual business income information return
with the department on the due date, including extensions, of its
annual federal information return.
(2)
Every employer, flow-through entity, eligible production
company,
casino licensee, and race meeting licensee and track
licensee
person required by this part to deduct or withhold taxes
from
compensation, share of income available for distribution,
winnings,
or payoff on a winning ticket shall
make a return or
report in form and content and at times as prescribed by the
department. An employer or flow-through entity that has entered
into an agreement with a community college pursuant to chapter 13
of the community college act of 1966, 1966 PA 331, MCL 389.161 to
389.166, and is required to deduct or withhold taxes from
compensation and make payments to a community college pursuant to
the agreement for a portion of those taxes withheld shall, for as
long as the agreement remains in effect, delineate in the return or
report required under this subsection between the amount deducted
or withheld and paid to the state and that amount paid to a
community college.
(3) Every person that receives a pension or annuity payment,
employee, member, or person with winnings or a payoff on a winning
ticket subject to withholding under this part shall furnish to the
person that disburses the pension or annuity payment, his or her
employer, flow-through entity, eligible production company, casino
licensee, race meeting licensee, and track licensee information
required
for the employer, flow-through entity, eligible production
company,
casino licensee, race meeting licensee, and track licensee
to
make an accurate withholding. An A person that receives pension
or annuity payments, employee, member, or person with winnings or a
payoff on a winning ticket subject to withholding under this part
shall file with the person that disburses the pension or annuity
payment, his or her employer, flow-through entity, eligible
production company, casino licensee, race meeting licensee, and
track licensee revised information within 10 days after a decrease
in the number of exemptions or a change in status from a
nonresident to a resident. The person who receives pension or
annuity payments, employee, nonresident member, or person with
winnings or a payoff on a winning ticket subject to withholding
under this part may file revised information when the number of
exemptions increases or when a change in status occurs from that of
a resident of this state to a nonresident of this state. Revised
information shall not be given retroactive effect for withholding
purposes.
An employer, flow-through entity, eligible production
company,
casino licensee, race meeting licensee, and track licensee
A person required by this part to deduct and withhold taxes shall
rely on this information for withholding purposes unless directed
by
the department to withhold on some other basis. If an a person
who receives a retirement or annuity payment, employee, member, or
person with winnings or a payoff on a winning ticket subject to
withholding under this part fails or refuses to furnish
information,
the employer, flow-through entity, eligible production
company,
casino licensee, race meeting licensee, and track licensee
person required by this part to deduct and withhold taxes shall
withhold the full rate of tax from the person's retirement or
annuity
payment, employee's total compensation,
the member's share
of
income available for distribution, distributive
share of
business income reasonably expected to accrue, or the winnings of a
person with winnings or a payoff on a winning ticket subject to
withholding under this part.
Enacting section 1. This amendatory act takes effect January
1, 2012.
