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Instructions for Web-based Tool for MBT Form 4585 or CIT Form 4902
   For Use by Unitary Business Groups *

Updated 04/22/2013

* Web tool instructions for separate filers (Single Filers) .

This Web-based tool was designed to assist you in completing:

  1. Michigan Business Tax (MBT) Form 4585. The MBT Form 4585 is designed to implement the statutory language in MCL 208.1403(3)(d, e & f) ; OR
  2. Corporate Income Tax (CIT) Form 4902, Line 2. The CIT Form 4902 is designed to implement the statutory language in MCL 206.673(2) .

IMPORTANT: This tool is not needed for taxpayers opting to use Method A or C, as described on the Method Summay Table found on the instructions for the 2012 version of MBT Form 4585, and for the 2012 CIT Form 4902. Taxpayers who meet any of the situations** below should use Method A, and not use this webtool:

  • Calendar Filers***: 2009 MBT Form 4569, lines 2 and 3 are equal for the latest 2009 tax year return filed;
  • Fiscal year filer***: 2008 MBT Form 4569, line 4 equals zero for the latest 2009 tax year return filed;
  • Current tax year UBG members who were not members of a group in 2008 or 2009 tax years and filed MBT Form 4583 for 2008 or 2009 tax year as single filers;
  • Current tax year UBG members who have not filed MBT returns in 2008 or 2009 as single filers, or have NOT included in MBT returns filed for both years; and have been included in filed MBT return(s) for tax year(s) after 2009.
**
Those situations were described on Note on Using Simplest Method, found on instructions under the heading Calculation of SBT ITC Recapture Rates on updated version 2012 of MBT Form 4585, and updated version of CIT Form 4902
***
Applies only to UBGs where all members were included in every 2008 and 2009 MBT return filed by the group, and the group members were the same in both tax years.
  1. Before You Begin Using the Web-based Tool
    1. Gather Single Business Tax (SBT) member returns filed for all tax years beginning after 1999 for each UBG member who disposed of assets that triggered SBT ITC recapture in the tax year for which the MBT or CIT form is being filed. If any of those SBT returns have been amended, data from the most recent amendment is the data required by this tool.
    2. For each of the members that SBT information was gathered, also gather the MBT returns filed for all tax years ending in 2008 and in 2009 by the member (if member was a single filer in those years) or by the group (if the member was part of a group in those years). If the MBT returns were amended, data from the most recent amendment is the data required by this tool.
    3. If filing an original or amended MBT return for the 2008 or 2009 filing periods, complete the return for the appropriate filling period to the extent that MBT Form 4569 is complete and MBT Form 4585 is completed through Line 5 (except Line 4, Column E).
  2. Using the Web-based Tool

    NOTE: The Webtool times out after 30 minutes of inactivity. Data entered in the Web-based tool is NOT saved by the Michigan Department of Treasury, beyond a 30-minute time-out period. Any action on the Webtool renews the 30-minute clock. You may also select “Erase All Data” to clear the data immediately after you finish.

    1. Taxpayer Name and FEIN/TR Number: Enter the designated member's (DM's) name and Federal Employer Identification Number (FEIN) or TR number in these two fields. Do not include a hyphen in the identification number.
    2. UBG Member Name and FEIN/TR Number: UBGs enter the name and FEIN or TR number of the member whose tax return data is about to be entered in the Webtool. The Webtool depends upon entries in each of these name/FEIN lines to manage the data during the brief time that data is maintained in this program.
      NOTE: As a result of the 2013 update of the Webtool, data is needed only from group members who disposed of assets that triggered SBT ITC recapture in the tax year for which the MBT or CIT form is being filed. This is a change from instructions present on MBT Form 4585 of versions prior to 2012.
    3. Go: Click the “Save” button to the right of the member's FEIN/TR field. It is essential to do this each time a new member has been identified for data entry.
    4. SBT Data Entry: Click the button titled “Enter ITC Data from SBT returns (2000 – 2007)”. This button opens four data fields. In each of these fields, enter data of the specific UBG member identified in the second name/FEIN line above.
      • File Period End Date: Enter the end date of the SBT filing period for which you are about to enter data. Begin with the oldest applicable SBT period. This must be a filing period beginning after 1999.
        NOTE: For an SBT filing period in which this member filed an SBT Form C-8000 with no SBT Form C-8000ITC attachment, or an SBT Form C-8030, enter in this field the filing period end date, and enter zero for the three fields described below. However, do not enter any information in this field or the three fields below for an SBT filing period in which this member filed nothing, or filed an SBT Form C-8044.
      • Net Capital Investment: From Form C-8000ITC of this member's SBT return for the filing period identified above, enter net capital investment reported on Line 24. This corresponds to the number entered on MBT Form 4585, Line 4, Column B, or on CIT Form 4902, Worksheet 4a, Line 4, Column B.
      • SBT Investment Tax Credit: From Form C-8000ITC of this member's SBT return for the filing period identified above, enter SBT Investment Tax Credit reported on Line 33. This corresponds to the number entered on MBT Form 4585, Line 4, Column C, or on CIT Form 4902, Worksheet 4a, Line 4, Column C.
      • SBT ITC Used: From Form C-8000ITC of this member's SBT return for the filing period identified above, enter the amount reported on Line 36. This corresponds to the number entered on MBT Form 4585, Line 4, Column D, or on CIT Form 4902, Worksheet 4a, Line 4, Column D.
        NOTE: An SBT ITC carryforward may be used for up to nine filing periods after the period in which it arose, but not later than the last filing period ending in 2009. A UBG member that had ten or more SBT filing periods after it first created an SBT ITC carryforward must take special care not to include in this field the use of an expired carryforward.
    5. Save: Click the “Save” button to complete entry of this SBT filing period.
    6. Edit: Note that pressing the “Save” button creates (or adds to) a table reflecting data entered. At the left end of each line in this table is an “Edit” link. If, after saving data you notice an error in the table, use the “Edit” link to amend the line item. After editing a line, press “Save.”
    7. Repeat for This Member: To enter data of this member for another SBT period, again click the button titled “Enter ITC Data from SBT returns (2000 – 2007),” and repeat the instructions above. Enter and save data for each applicable SBT period for this member, from oldest to most recent.
    8. MBT Data Entry: If filing original or amended MBT return for tax years 2008 or 2009, this step will include adjusted data from the partially completed MBT form for the appropriate filing period, as described in section A(3) above. If filling original or amended returns for all other tax years, this step will include entering adjusted figures from previously filed 2008 and 2009 MBT forms. The use of adjusted figures from previous filed in 2008 and 2009 MBT forms is a result of the 2013 update of this tool. The needed adjustments will be explained in more detail below.

      NOTE: If the member completing Form 4585 or the Worksheets on Form 4902 was NOT part of a UBG in 2008 and/or 2009 tax years, and filed as a single filer, take care to report on the next two fields information from the member's singly filed returns.

      When data from all applicable SBT periods has been entered and saved, click the button titled “Enter ITC Data from MBT Form 4569 (2008 – 2009).” This button opens the following two data fields:
      • File Period End Date: Enter the end date of the MBT returns for 2008 and 2009 filing periods. Begin with the oldest return. If you have amended an earlier MBT return, enter amended data here. When filing an original or amended return for a 2008 filing period, do not enter end dates of returns for filing periods after 2008.

        NOTE: For an MBT filing period in which a Form 4567 with no Form 4569 was filed, enter in this field the filing period end date, and enter zero for the next field described below. Do not enter any information in this field or the next below for an MBT filing period in which no MBT form was filed or a Form 4583 was filed. (See IMPORTANT note at the beginning of these instructions.)
      • SBT ITC Carryforward Used: From MBT Form 4569, Line 3, for the filing period identified above, gather the amount of SBT ITC Carryforward Used. This is a group-wide amount of SBT ITC Carryforward Used by in the filing period.
        Using adjusted figures on 2013 Web-tool: (instructions can be found on 2012 version of MBT Form 4585 ) From the group-wide SBT ITC Carryforward Used amount, determine the portion of that total amount for each filing period that pertains only to the specific member for which information is being entered on the Webtool. Enter the determined portion on MBT Form 4585, Line 5, Column B of each member. If filing CIT Form 4902, enter the determined portion on the Worksheet 4b, line 5, Column B of each member.
        For example: In 2008, group ABC files MBT return claiming $1,000,000 in SBT ITC credit carryforward. The group consisted of Company 1, Company 2, Company 3 and Company 4. Company 4’s tax year ended after the tax year of the group’s Designated Member, so Company 4’s data was not included in group ABC’s 2008 MBT return, even though Company 4 was part of the UBG. The total $1,000,000 in SBT ITC credit carryforward resulted from the sum of $200,000 in SBT ITC credit carryforward from Company 1, $300,000 from Company 2, and $500,000 from Company 3. In the current year, Companies 2, 3 and 4 dispose of capital investment outside of the UBG, which triggers SBT ITC credit recapture.
        In the current year group ABC is filing MBT returns. So, the UBG files one MBT Form 4585 for each Company 2, Company 3, and Company 4 in which is reported the SBT ITC credit recapture from each member. When entering on the Webtool the SBT ITC carryforward used by Company 2 on the 2008 filing period, report $200,000 – which represents the portion of the total SBT ITC credit carryforward claimed by the group in 2008 that corresponds only to Company 2's SBT ITC credit carryforward in that filing period. Enter this amount also when filing Company 2's MBT Form 4585, Line 5, Column B. When entering on the Webtool the SBT ITC carryforward used for Company 3 in 2008, report $500,000 – which represents Company 3's portion of the total SBT ITC credit carryforward claimed by the group in 2008. Enter $500,000 also when filing Company 3's MBT Form 4585, Line 5, Column B. When entering on the Webtool the SBT ITC carryforward used for Company 4 in 2008, report $0 – which represents Company 4's portion of the total SBT ITC credit carryforward claimed by the group in 2008. Enter $0 also when filing Company 4's MBT Form 4585, Line 5, Column B.
        If the group ABC is filing a CIT Form 4902, enter $200,000 on Company 2's specific Worksheet 4b, line 5, Column B, $500,000 on Company 3's specific Worksheet 4b, line 5, Column B; and $0 on Company 4's specific Worksheet 4b, line 5, Column B.
        NOTE: An SBT ITC carryforward may be used for up to nine filing periods after the period in which it arose, but not later than the last filing period ending in 2009. A UBG that now is reporting the tenth (or greater) filing period after any of its members first created an SBT ITC carryforward must take special care not to include in this field (or on Form 4569) the use of an expired carryforward.
    9. Save: Click the “Save” button to complete entry of this MBT filing period.
    10. Repeat: To enter data for another MBT filing period of this UBG (if any), again click the button titled “Enter ITC Data from MBT Form 4569 (2008 – 2009),” and repeat the instructions above. Enter and save data for each applicable MBT period of this UBG, from oldest to most recent, including the partially completed return for the current filing period. Take care to enter ONLY the portion of the group-wide figure that pertains to the specific group member, as explained on step B(7) above.
    11. Run the Program: When all applicable SBT and MBT data has been entered and saved for the required member, and any necessary corrections made with the “Edit” function, press the “Calculate SBT ITC Credit Amount Offset” button near the bottom of the page. The Webtool will then display figures that will be used to populate MBT Form 4585, Table I, Line 9, Column J (see 2012 version of Form 4585, page 146), or CIT Form 4902, Worksheet 4c, Line 8, Column J (see 2012 Form 4902, page 79) of the member's table. Take care to enter each amount on the row corresponding to the filing period end date shown on the Web page line from which it came.
    12. Print: This is the most convenient point at which to print the data entry for this member. A printed copy may be helpful later, particularly to identify data entry errors. Do not attach a copy of this printed result to your return.
    13. Complete Remainder of Each MBT Form or CIT Form: For each member of the UBG that is filing an MBT Form 4585, use 2012 version form instructions to continue completing Table I and then Part 2, Line 4, Column E, and finally, the entire Part 3, Line 3. For a group filing CIT Form 4902, continue to complete the remainder of member specific Worksheet 4c, Worksheet 4a, Line 4, Column E, and finally the entire Worksheet 5.
    14. Repeat SBT Data Entry Process for Another UBG Member: Return to the top of this section (B) of instructions. Leave the first name/FEIN line as it is (Instruction B(1), identifying the DM). Change the second name/FEIN line (Instruction B(2) ) to identify the member whose data will be entered next. Data entered for the previous member will disappear from the screen when you click "Go". Repeat for every member that has sales in the current filing period of SBT-era ITC assets.

You may want to print these instructions before proceeding to the tool.

Proceed to the Web tool




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