Estimated Returns and Payments
Corporate, financial institution and insurance company taxpayers that reasonably expect to have a liability of more than $800 for the tax year must make quarterly estimated payments and returns. Each payment must approximate the taxpayer's tax liability for the quarter or 25% of estimated annual liability. Second, third, and fourth quarter payments should include any necessary adjustments for overpayments or underpayments from a previous quarter. Interest and penalty will not be assessed if the sum of all estimated payments made is at least 85% of the annual liability and each quarterly payment reasonably approximates the liability incurred in the quarter.
Taxpayers that calculate and pay estimates pursuant to IRC 6655(e) may use the same methodology to make CIT estimated payments.
Estimated returns and payments are due to the Department on April 15, July 15, October 15, and January 15. Fiscal year taxpayers should make returns and payments on the appropriate due date which in the fiscal year corresponds to the calendar year. Use Form 4913 to make estimated payments.
For tax years after the first CIT tax year, a taxpayer may submit four equal estimated payments, the sum of which equals the previous tax year's liability, if the previous year's liability was $20,000 or less.
For the taxpayer's first year under the CIT of less than 12 months, the amounts paid with each quarterly return shall be proportional to the number of payments made in the first tax year. A taxpayer with a tax year of less than four months is not required to file an estimated tax return or remit estimated payments.
An annual or final return must be filed with the Department by the last day of the fourth month after the end of the taxpayer's tax year. A taxpayer must remit any liability by the due date of the return.
The Department of Treasury will prescribe forms for use by taxpayers.
Taxpayers with less than $350,000 in allocated or apportioned gross receipts are not required to file a return or pay the tax. In calculating the filing threshold, the apportioned or allocated gross receipts of a flow-through entity shall be imputed to each of its members based upon the same percentage that each member's proportionate share of distributive income is to the total distributive income of the flow-through entity. A taxpayer with an annual liability of less than or equal to $100 is not required to file or pay under the act.
For tax years of less than 12 months, a taxpayer's gross receipts filing threshold is calculated by multiplying $350,000 by a fraction, the numerator of which is the number of months in the taxpayer's tax year and the denominator of which is 12.
The gross receipts filing threshold does not apply to insurance companies and financial institutions. However, these taxpayers are not required to file or pay if annual liability is less than or equal to $100.
Extension of Time to File
The Department of Treasury may grant an extension for filing of a return for good cause shown. If the taxpayer received a federal extension and files a copy of that federal extension with the Department, together with a tentative return and payment, then the taxpayer will receive an automatic extension to the last day of the eighth month following the original due date.
An extension of time to file is not an extension of time to pay.
An insurance company does not qualify for an automatic extension.
A CIT taxpayer’s tax year is the calendar year, or the fiscal year ending during that calendar year. In the case of a return made for a fractional part of a year, “tax year” is the period for which the return is made. Except for the first return required under the CIT, a taxpayer’s tax year shall be for the same period as is covered by its federal income tax return.
A taxpayer that has a 52- or 53-week tax year beginning not more than 7 days before the end of any month is considered to have a tax year beginning on the first day of the subsequent month.
A person included in a unitary business group that joins or departs the unitary business group other than at the beginning or end of that person’s federal tax year shall have a tax year beginning at the start of its federal tax year and ending on the date of joining or departing the unitary business group, and another tax year beginning on the date immediately after joining or departing the unitary business group and ending with the conclusion of its federal tax year.
Computation of First Tax year Less than 12 Months
If a taxpayer's CIT tax year ends before December 31, 2012, the tax may be computed by applying the CIT to the actual short period tax year or computed as though the CIT were in effect for the taxpayer's entire tax year and prorating.
The choice between the annual and actual calculation methods applies only to the first year under the CIT. The calculation method chosen by the taxpayer for the first short year must be the same as the method used by the taxpayer when computing the final MBT return for the other portion of the taxpayer's same tax year.