Bill Text: MI SB0098 | 2009-2010 | 95th Legislature | Engrossed
Bill Title: Michigan business tax; estimated payments; clarification during transition period for penalties associated with the payment of estimated taxes for the 2008 tax year; provide for. Amends sec. 501 of 2007 PA 36 (MCL 208.1501). TIE BAR WITH: HB 4496'09
Spectrum: Partisan Bill (Republican 12-0)
Status: (Passed) 2009-04-21 - Assigned Pa 0008'09 With Immediate Effect [SB0098 Detail]
Download: Michigan-2009-SB0098-Engrossed.html
SB-0098, As Passed Senate, February 5, 2009
SUBSTITUTE FOR
SENATE BILL NO. 98
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 taxpayer's first tax year beginning after
December 31, 2007 if that taxpayer paid 80% 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.
