Filing Requirements 11. What is the filing threshold under Part 2 of the Income Tax Act of 1967 (ITA) that imposes the CIT?

Section 685(1) (MCL 206.685(1)) of the ITA directs that a taxpayer, other than an insurance company or financial institution, whose apportioned or allocated gross receipts are less than $350,000.00, does not need to file a return or pay the tax imposed under Part 2 of the ITA. Section 685(1) also directs that a taxpayer whose CIT tax liability is less than or equal to $100.00 does not need to file a return or pay the tax imposed under Part 2.

This section clearly excludes insurance companies and financial institutions from the $350,000.00 filing threshold. An insurance company or financial institution with an annual liability of $100.00 or less is not required to file a CIT annual return or pay the tax.

Although a taxpayer may have gross receipts and tax under the applicable thresholds, the filing of a return may nonetheless be required in order to (i) obtain a refund of overpaid taxes, (ii) credit forward overpaid taxes to a subsequent year, or (iii) carry forward a business loss to a subsequent year.