Please review the instructions in the Gross Receipts Checklist box on page 11 of the Single Business Tax Book when completing the worksheets on page 16 for a more detailed explanation of:

1. Gross Receipts from the U.S. 1040, U.S. 1065, U.S. 1120, U.S. 1120A, or U.S. 1120S, Schedule D, short and long term sales price, or
    
2. (2) U.S. 4797, gross sales price, business assets.

In particular, see the Gross Receipts Checklist on Page 11 as it relates to Worksheet 1, Lines 3 and 5; Worksheet 2, Lines 4 and 5; and Worksheet 3, Lines 3 and 5.

Under MCL 208.7(3) - definition of gross receipts - paragraph (o) provides that sale of a capital asset generates gross receipts only to the extent of the gain, not the entire sale price.  Many of the assets reported on federal Schedule D are capital assets. 

Receipts exclude:

Proceeds from a sale, transaction, exchange, involuntary conversion, or other disposition of tangible, intangible or real property that is a capital asset as defined in section 1221(a) of the Federal Internal Revenue Code, or land that qualifies as property used in trade or business as defined in section 1231 (b) of the Internal Revenue Code, less any gain from the disposition to the extent that gain is included in federal taxable income.

Michigan College Tuition and Fees Credit claims (Form Schedule CT) are being filed with ineligible college or university codes.  Credits claimed using an invalid college or university code will be denied.  The following colleges and universities are eligible for this credit for tax year 2005.

0505  Bay Mills Community College
0245  Concordia University
0524  Henry Ford Community College
0341  Lewis College of Business
0568  Mid-Michigan Community College
0612  Oakland Community College
0420  Walsh College of Accounting & Business
0636  Wayne County Community College

If a taxpayer does not have a Social Security number (SSN) and is not eligible to obtain an SSN, but has a requirement to furnish a federal tax identification number or file a federal income tax return, they must apply for an Individual Taxpayer Identification Number (ITIN).  By law, an alien individual cannot have both an ITIN and an SSN.

The IRS issues ITINs to individuals who are required to have a U.S. taxpayer identification number but who do not have, and are not eligible to obtain an SSN from the Social Security Administration. ITINs are issued regardless of immigration status because both resident and nonresident aliens may have U.S. tax return and payment responsibilities under the Internal Revenue Code.  Individuals must have a filing requirement and file a valid federal income tax return to receive an ITIN, unless they meet an exception.

An ITIN is a nine-digit number beginning with the number "9", has a "7" or "8" for the fourth digit, formatted like a SSN (9XX-7X-XXXX).

When filing a Michigan individual income tax return, the SSNs should not be entered as 999-99-9999.  An individual with no SSN should apply to the IRS for an ITIN.  The ITIN should be used when filing the Michigan individual income tax return.  Returns with ITINs can be e-filed.

If the taxpayer is not eligible to receive an ITIN from the IRS, but has a tax obligation with Michigan, a paper return must be filed.  Please write across the top of the front of the Michigan return "Not eligible for ITIN" in blue or black ink, and Michigan will assign an account number to the return for processing purposes only.

Please visit the IRS Web site at www.irs.gov for more information about ITINs.