Michigan Penalty and Interest Computation for Underpaid Estimated Tax

Penalty and Interest Computation for Underpaid Estimated Tax
4582, 2019 Michigan Business Tax Penalty and Interest Computation for Underpaid Estimated Tax
Attachment 16

Michigan Department of Treasury
4582 (Rev. 12-19), Page 1 of 2

2019 MICHIGAN Business Tax Penalty and Interest Computation
for Underpaid Estimated Tax
Issued under authority of Public Act 36 of 2007.
Taxpayer Name

Federal Employer Identification Number (FEIN) or TR Number

PART 1: ESTIMATED TAX REQUIRED
1. Annual tax from Form 4567, line 59; or Form 4588, line 47; or Form 4590, line 32 ..............................................
2. Required estimate amount. Enter 85% (0.85) of line 1..........................................................................................
See MBT instruction booklet for exceptions to penalty and
interest computation.
3. ENTER THE PAYMENT DUE DATES (MM-DD-YYYY) ....
4. Divide amount on line 2 by 4, or by the number of
quarterly returns required. If annualizing, enter the
amount from Annualization Worksheet, line 70, page 2 ....
CAUTION: Complete lines 5 - 13 one column at a time
5. Prior year overpayment .....................................................
6. Estimated payments and refundable credits (see instr.).....
7. Enter amount, if any, from line 13 of the previous column.
8. Add lines 5, 6 and 7...........................................................
9. Add amounts on lines 11 and 12 of the previous column
and enter the result here ...................................................

A

00
00

1.
2.

B

C

D

X X X X X

X X X X X

X X X X X

B

C

D

3.

4.
5.
6.
7.
8.
9.

X X X X X
X X X X X

10. Subtract line 9 from line 8. If less than zero, enter zero.
For column A only, enter the amount from line 8 ............... 10.
11. Remaining underpayment from previous period. If
amount on line 10 is zero, subtract line 8 from line 9 and
enter result here. Otherwise, enter zero ............................

11.

X X X X X

12. If line 4 is greater than or equal to line 10, subtract line 10
from line 4 and enter it here. Then go to line 6 of the next
column. Otherwise, go to line 13 ....................................... 12.
13. If line 10 is larger than line 4, subtract line 4 from line 10
and enter it here. Then go to line 6 of next column ........... 13.

PART 2: FIGURING INTEREST

A

14. TOTAL UNDERPAYMENT. Add lines 11 and 12................. 14.
15. Enter due date for the next quarter or date tax was paid,
whichever is earlier. In column D, enter the due date for the
annual return or date tax was paid, whichever is earlier ...... 15.
16. Number of days from the due date of the quarter to the
date on line 15 ....................................................................
17. No. of days on line 16 after 04-15-19 and before 07-01-19..
18. No. of days on line 16 after 06-30-19 and before 01-01-20..
19. No. of days on line 16 after 12-31-19 and before 07-01-20..
20. No. of days on line 16 after 06-30-20 ...................................

16.
17.
18.
19.
20.

21. Number of days on line 17 x 5.9% (0.0590) x line 14......... 21.
365
22. Number of days on line 18 x 6.39% (0.0639) x line 14....... 22.
365
23. Number of days on line 19 x 6.4% (0.0640) x line 14......... 23.
365
24. Number of days on line 20 x *% x line 14.......................... 24.
365
25. Interest on underpayment. Add lines 21 through 24........... 25.
26. Interest Due. Add line 25 columns A through D and enter the result here.......................................................

26.

00

* Interest rate will be set at 1% above the adjusted prime rate for this period.

+

0000 2019 63 01 27 9

Continue on Page 2.

2019 Form 4582, Page 2 of 2

FEIN or TR Number

PART 3: FIGURING PENALTY
27. Enter the amount from line 12 ........................................
28. Payment due dates from line 3 (MM-DD-YYYY) ............

B

A

D

29. Annual return due date or the date payment was made,
whichever is earlier.........................................................
29.
30. Number of days from date on line 28 to date on line 29.
30.
31. If line 30 is greater than 0 but less than 61, multiply line 27 by 5% (0.05) ..
31.
32. If line 30 is greater than 60, but less than 91, multiply line 27 by 10% (0.10).. 32.
33. If line 30 is greater than 90, but less than 121, multiply line 27 by 15% (0.15)..
33.
34. If line 30 is greater than 120, but less than 151, multiply line 27 by 20% (0.20).. 34.
35. If line 30 is greater than 150, multiply line 27 by 25% (0.25)......
35.
36. Add lines 31 through 35..................................................
36.
37. Total Penalty. Add line 36, columns A through D ...................................................................................................... 37.

00

38. Total Penalty and Interest. Add lines 26 and 37. Enter here and on Form 4567, line 68; or Form 4588, line 56;
or Form 4590, line 41 ................................................................................................................................................ 38.

00

PART 4: ANNUALIZATION WORKSHEET FOR MODIFIED
GROSS RECEIPTS AND BUSINESS INCOME TAXES
(If filing Form 4588 or Form 4590, see instructions.)
Complete worksheet if liability is not evenly distributed throughout year.
39.
40.
41.
42.
43.
44.
45.
46.
47.
48.
49.
50.
51.
52.
53.
54.

Gross receipts (GR).........................................................
Subtractions.....................................................................
Modified GR. Subtract line 40 from line 39......................
Apportionment percentage from Form 4567, line 11c .....
Apportioned GR Tax Base. Multiply line 41 by line 42.....
Multiply line 43 by 0.8% (0.008) ......................................
Enrichment Prohibition for dealers of boats/new motor vehicles ...
GR Tax Before Credits. Enter the greater of lines 44 or 45
Business Income (BI) ......................................................
Additions..........................................................................
Add lines 47 and 48.........................................................
Subtractions.....................................................................
BI Tax Base. Subtract line 50 from line 49.......................
Apportioned BI Tax Base. Multiply line 51 by line 42.......
MBT business loss carryforward .....................................
Qualified Affordable Housing Deduction..........................

39.
40.
41.
42.
43.
44.
45.
46.
47.
48.
49.
50.
51.
52.
53.
54.

55. Subtract line 54 and line 53 from line 52.
If less than zero, enter zero..............................................
56. BI Tax Before Credits. Multiply line 55 by 4.95% (0.0495)
57. Total MBT Before Credits. Add lines 46 and 56...............

55.
56.
57.

58. The annual surcharge is no longer applicable.
There is no amount to be entered on this line .................
59. Enter amount from line 57 ...............................................
60. Nonrefundable Credits.....................................................
61. Subtract line 60 from line 59. If less than zero, enter zero
62. Recapture of certain MBT credits and deductions...........
63. Corporate Income Tax adjustment (see instructions) ......
64. Net Tax Liability. Add lines 61, 62 and 63 ........................
65. Annualization ratios .........................................................
66. Annualized tax. Multiply line 64 by line 65.......................
67. Applicable percentage .....................................................
68. Multiply line 66 by line 67 ................................................
69. Combined amounts of line 70 from all preceding columns

58.
59.
60.
61.
62.
63.
64.
65.
66.
67.
68.
69.

70. ESTIMATE REQUIREMENTS BY QUARTER.
Subtract line 69 from line 68. If less than zero, enter zero.
Enter here and on page 1, line 4........................................

70.

A

First 3 Months

B

First 6 Months

%

0000 2019 63 02 27 7

C

First 9 Months

%

D

Full 12 Months

%

%

X X X X X

X X X X X

X X X X X

X X X X X

4

2

1.3333

1

21.25%

42.5%

63.75%

85%

X X X X X

NOTE: Totals on line 70 must equal 85% of the current year tax liability on page 1, line 1.

+

C

27.
28.

Instructions for Form 4582, Michigan Business Tax (MBT)
Penalty and Interest Computation for Underpaid Estimated Tax
Purpose
To	 compute	 penalty	 and	 interest	 for	 underpaying,	 late	 filing,	
or	 late	 payment	 of	 quarterly	 estimates.	 If	 a	 taxpayer	 prefers	
not	 to	 file	 this	 form,	 the	 Department	 of	 Treasury	 (Treasury)	
will	 compute	 any	 applicable	 penalty	 and	 interest	 and	 bill	 the	
taxpayer.	 Part	 4	 of	 this	 form	 also	 is	 used	 to	 determine	 and	
report	 the	 amount	 of	 estimates	 due	 when	 income	 is	 not	 evenly	
distributed	through	the	tax	year.
NOTE:	 Penalty	 and	 interest	 for	 late	 filing	 or	 late	 payment	 on	
the	 annual	 return	 is	 computed	 separately.	 See	 the	 “Computing	
Penalty	 and	 Interest”	 section	 of	 the	 “General	 Information	 for	
Standard	 Taxpayers”	 in	 the	 MBT Forms and Instructions for
Standard Taxpayers	(Form	4600).
Estimated	 returns	 and	 payments	 are	 required	 from	 any	
taxpayer	 that	 expects	 an	 annual	 MBT	 liability	 (including	
Corporate	 Income	 Tax	 adjustment)	 of	 more	 than	 $800.	
Exceptions	 are	 listed	 below.	 If	 a	 taxpayer	 owes	 estimated	
tax	 and	 the	 estimated	 return	 with	 full	 payment	 is	 not	 filed	 or	
is	 filed	 late,	 penalty	 is	 added	 at	 5	 percent	 of	 tax	 due,	 for	 the	
first	 two	 months.	 Penalty	 increases	 by	 an	 additional	 5	 percent	
per	 month,	 or	 fraction	 thereof,	 after	 the	 second	 month,	 to	 a	
maximum	 of	25	 percent.	If	 the	taxpayer	made	no	 estimated	 tax	
payments	 and	 none	 of	 the	 exceptions	 below	 apply,	 compute	 the	
interest	due	(Part	2)	and	the	penalty	for	non-filing	(Part	3).

less	 than	 $350,000.	 In	 addition,	 if	 your	 business	 was	 not	 in	
existence	 in	 the	 preceding	 year,	 no	 safe	 harbor	 exists.	 In	 such	
a	 case,	 estimates	 must	 be	 based	 on	 the	 MBT	 liability	 for	 the	
current	year.
• The	taxpayer	is	a	farmer,	fisherman,	or	seafarer	and	files	the	
MBT Annual Return	 (Form	 4567)	 by	 March	 1,	 or	 a	 tentative	
annual	 return	 with	 payment	 by	 January	 15,	 and	 the	 final	
return	on	or	before	April	15.	
Annualizing
To	 annualize	 for	 a	 period	 of	 less	 than	 12	 months,	 multiply	 each	
applicable	 amount	 by	 12	 and	 divide	 the	 result	 by	 the	 number	
of	 months	 the	 business	 operated	 or	 the	 person	 was	 a	 partner.	
Generally,	a	business	is	considered	in	business	for	one	month	if	
the	 business	 operated	 for	 more	 than	 half	 the	 days	 of	 the	 month.	
If	 the	 business	 was	 in	 operation	 for	 less	 than	 a	 month	 it	 is	
considered	to	have	been	in	business	for	1	month.
NOTE:	 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.	
Retain	the	calculation	for	your	records.

Exceptions

Line-by-Line Instructions

If	 any	 of	 the	 conditions	 listed	 below	 apply,	 do	 not	 pay	 penalty	
and	 interest.	 If	 a	 business	 operated	 less	 than	 12	 months	 in	 the	
current	 or	 preceding	 year,	 annualize	 figures	 (as	 applicable)	 to	
determine	 if	 the	 exceptions	 apply.	 See	 Form	 4600	 for	 complete	
annualizing	instructions.

Lines not listed are explained on the form.

• The	annual	tax	on	the	current	annual	return	is	$800	or	less.
• The	 return	 is	 for	 a	 taxable	 period	 of	 less	 than	 four	 calendar	
months.
• The	 estimated	 quarterly	 payments	 reasonably	 approximate	
the	 tax	 liability	 incurred	 for	 each	 quarter	 and	 the	 total	 of	 all	
payments	 equals	 at	 least	 85	 percent	 of	 the	 annual	 liability.	
Complete	 the	 Annualization	 Worksheet	 (Part	 4)	 if	 the	
liability	is	not	evenly	distributed	through	the	tax	year.
• The	 sum	 of	 estimated	 payments	 equals	 the	 annual	 tax	 on	 the	
preceding	 year’s	 return,	 provided	 these	 payments	 were	 made	
in	four	timely	equal	payments	and	the	preceding	tax	year’s	tax	
under	the	MBT	Act	was	$20,000	or	less.	If	the	prior	year’s	tax	
liability	 was	 reported	 for	 a	 period	 less	 than	 12	 months,	 this	
amount	 must	 be	 annualized	 for	 purposes	 of	 both	 the	 $20,000	
ceiling	 and	 calculating	 the	 quarterly	 payments	 due	 under	 this	
method.	 See	 “Filing	 if	 Tax	 Year	 Is	 Less	 Than	 12	 Months”	 in	
the	 “General	 Information”	 section	 of	 Form	 4600	 for	 more	
information.	 Reliance	 on	 the	 prior	 year’s	 tax	 liability	 as	 a	
means	 to	 avoid	 interest	 and	 penalty	 charges	 is	 only	 allowed	
if	 you	 had	 business	 activity	 in	 Michigan	 in	 that	 prior	 year.	 A	
return	 must	 have	 been	 filed	 to	 establish	 the	 tax	 liability	 for	
that	 prior	 year,	 even	 if	 gross	 receipts	 in	 the	 prior	 year	 were	

Do	not	enter	data	in	boxes	filled	with	Xs.
Dates	must	be	entered	in	MM-DD-YYYY	format.
Name and Account Number: Enter	name	and	account	number	
as	 reported	 on	 page	 1	 of	 the	 applicable	 MBT	 annual	 return	
(either	 Form	 4567,	 the	 MBT Annual Return for Financial
Institutions	 (Form	 4590),	 or	 the	 Insurance Company Annual
Return for Michigan Business and Retaliatory Taxes	 (Form	
4588)).	
PART 1: ESTIMATED TAX REQUIRED
Line 2:	Enter	85	percent	of	the	annual	tax	amount	from	line	1.	
Line 3:	 Enter	 the	 due	 date	 for	 each	 quarterly	 return.	 For	
calendar	 year	 filers	 these	 dates	 are	 April	 15,	 July	 15,	 October	
15,	 and	 January	 15.	 For	 fiscal	 year	 filers,	 these	 dates	 are	 the	
15th	 day	 of	 the	 4th,	 7th,	 10th	 and	 13th	 months	 after	 the	 start	 of	
the	 fiscal	 year.	 For	 any	 tax	 year	 that	 includes	 an	 estimated	 tax	
payment	 period	 of	 less	 than	 three	 months,	 the	 quarterly	 return	
for	 that	 period	 is	 due	 on	 the	 15th	 day	 of	 the	 month	 immediately	
following	the	final	month	of	the	estimated	tax	payment	period.
Line 4:	 Divide	 the	 amount	 of	 the	 estimated	 tax	 required	 for	
the	 year	 on	 line	 4	 by	 four	 and	 enter	 this	 as	 estimated	 tax	 for	
each	 quarter.	 If	 the	 business	 operated	 less	 than	 12	 months,	
divide	 by	 the	 number	 of	 quarterly	 returns	 required	 and	 enter	
this	as	the	estimated	tax	for	each	quarter.	
Actual Quarterly Tax.	 If	 a	 taxpayer	 computes	 quarterly	 tax	

123

due	 based	 on	 the	 actual	 tax	 base	 for	 each	 quarter,	 complete	
Part	 4	 first,	 then	 bring	 the	 tax	 from	 line	 70	 of	 the	Annualization	
Worksheet	 to	 line	 4.	 See	 Part	 4	 instructions	 for	 taxpayers	 filing	
a	 return	 other	 than	 Form	 4567.	 The	 total	 of	 the	 four	 computed	
amounts	cannot	be	less	than	line	2.
Line 5:	 Complete	 column	 A	 only.	 Enter	 the	 amount	 of	 prior	
year	overpayment	credited	to	the	current	tax	year	estimates.
Line 6:	Amount	Paid.
• Column A:	 Enter	 estimated	 payments	 made	 by	 the	 due	 date	
for	 the	 first	 quarterly	 return.	 Also	 in	 column	 A,	 enter	 the	
total	 refundable	 credits	 from	 line	 23	 of	 the	 MBT Refundable
Credits	 (Form	 4574)	 or	 line	 5	 of	 the	 Miscellaneous Credits
for Insurance Companies	(Form	4596).
• Column B:	 Enter	 payments	 made	 after	 the	 due	 date	 in	
column	A	and	by	the	due	date	in	column	B.	
• Column C:	 Enter	 payments	 made	 after	 the	 due	 date	 in	
column	B	and	by	the	due	date	in	column	C.	
• Column D:	 Enter	 payments	 made	 after	 the	 due	 date	 in	
column	C	and	by	the	due	date	in	column	D.
If	 quarterly	 payments	 are	 made	 after	 the	 due	 date,	 penalty	 and	
interest	 will	 apply	 until	 the	 payment	 is	 received.	 If	 less	 than	
full	 payment	 is	 made	 with	 a	 late	 filing,	 the	 taxpayer	 will	 need	
to	 compute	 multiple	 penalty	 and	 interest	 calculations	 for	 each	
column.	Attach	a	separate	schedule	if	necessary.
PART 2: FIGURING INTEREST
Compute	 the	 interest	 due	 for	 both	 non-filing	 and	 underpayment	
of	 the	 required	 estimated	 tax	 in	 this	 section.	 Follow	 the	
instructions	 for	 each	 line,	 as	 interest	 is	 calculated	 separately	
for	 each	 quarter	 and	 the	 interest	 rate	 might	 not	 be	 the	 same	 for	
each	quarter.
Line 15: Enter	 the	 due	 date	 of	 the	 next	 quarter	 or	 the	 date	 the	
tax	was	paid,	whichever	is	earlier.	In	column	D,	enter	the	earlier	
of	the	due	date	for	the	annual	return	or	the	date	the	tax	was	paid.	
An	 approved	 extension	 does	 not	 change	 the	 due	 date	 of	 the	
annual	return	(column	D)	for	this	computation.
PART 3: FIGURING PENALTY
Compute	 the	 penalty	 due	 for	 both	 non-filing	 and	 underpayment	
of	 the	 required	 estimated	 tax	 in	 this	 section.	 Follow	 the	
instructions	 for	 each	 line,	 as	 the	 penalty	 and	 interest	 is	
calculated	separately	for	each	quarter	and	the	penalty	percentage	
and	interest	rate	might	not	be	the	same	for	each	quarter.
Avoiding Penalty and Interest Under MBT
If	 estimated	 liability	 for	 the	 year	 is	 reasonably	 expected	 to	
exceed	$800,	a	taxpayer	must	file	estimated	returns.	A	taxpayer	
may	 remit	 quarterly	 estimated	 payments	 by	 check	 with	 a	
Corporate	 Income	 Tax	 Quarterly	 Return	 (Form	 4913)	 or	 may	
remit	 monthly	 or	 quarterly	 estimated	 payments	 electronically	
by	 Electronic	 Funds	 Transfer	 (EFT).	 When	 payments	 are	 made	
by	EFT,	Form	4913	is	not	required.
Formerly,	 taxpayers	 could	 make	 payments	 on	 a	 monthly	 basis	
by	 remitting	 a	 check	 with	 a	 Combined Return for Michigan
Tax	 (Form	 160).	 Form	 160	 was	 replaced	 effective	 Janaury	
2015.	 The	 new	 form	 no	 longer	 accommodates	 MBT	 payments.	

124

As	 a	 result,	 Form	 4913	 is	 the	 only	 form	 that	 supports	 an	 MBT	
estimated	payment.
Estimated	 returns	 and	 payments	 for	 calendar	 year	 taxpayers	
are	 due	 to	 Treasury	 by	 April	 15,	 July	 15,	 October	 15,	 and	
January	 15	 of	 the	 following	 year.	 Fiscal	 year	 taxpayers	 should	
make	 returns	 and	 payments	 by	 the	 appropriate	 due	 date	 which	
is	 fifteen	 days	 after	 the	 end	 of	 each	 fiscal	 quarter.	 The	 sum	 of	
estimated	 payments	 for	 each	 quarter	 must	 always	 reasonably	
approximate	the	liability	for	the	quarter.
NOTE:	 Your	 debit	 transaction	 will	 be	 ineligible	 for	 EFT	
if	 the	 bank	 account	 used	 for	 the	 electronic	 debit	 is	 funded	 or	
otherwise	 associated	 with	 a	 foreign	 account	 to	 the	 extent	 that	
the	payment	transaction	would	qualify	as	an	International	ACH	
Transaction	(IAT)	under	NACHA	Rules.	Contact	your	financial	
institution	 for	 questions	 about	 the	 status	 of	 your	 account.	
Contact	 the	 Michigan	 Department	 of	 Treasury’s	 (Treasury)	
EFT	Unit	at	517-636-6925	for	alternate	payment	methods..
PART 4: ANNUALIZATION WORKSHEET FOR
MODIFIED GROSS RECEIPTS AND BUSINESS
INCOME TAXES
Standard	 taxpayers	 may	 use	 the	 Annualization	 Worksheet	 to	
calculate	 and	 report	 the	 amount	 of	 estimates	 due	 when	 income	
is	not	evenly	distributed	throughout	the	tax	year.
If	 filing	 Form	 4588,	 or	 Form	 4590,	 submit	 a	 schedule	 showing	
the	 entity’s	 computations	 for	 each	 quarter.	 Enter	 the	 total	
amounts	 on	 line	 64	 and	 follow	 the	 instructions	 for	 lines	 65	
through	70.	
Each	column	represents	a	quarterly	three-month	filing	period.
The	 Annualization	 Worksheet	 essentially	 leads	 filers	 through	
the	 steps	 required	 to	 calculate	 the	 actual	 MBT	 due	 for	 the	
tax	 year	 to	 date.	 The	 net	 tax	 liability	 is	 then	 annualized	 and	
multiplied	 by	 the	 percentage	 of	 estimates	 required	 for	 that	
quarter.
Line 42:	If	not	subject	to	apportionment,	enter	100	percent.
Line 53: Deduct	 any	 available	 MBT	 business	 loss	 incurred	
after	December	31,	2007.	Enter	as	a	positive	number.
Business loss	means	a	negative	business	income	tax	base,	after	
apportionment,	if	applicable.
NOTE:	 MBT	 business	 loss	 carryforward	 is	 not	 the	 same	 as	
the	 federal	 net	 operating	 loss	 carryforward	 or	 carryback.	 It	 is	
also	 not	 the	 same	 as	 a	 Corporate	 Income	 Tax	 (CIT)	 business	
loss	 carryforward.	 CIT	 business	 loss	 carryforward	 may	 not	 be	
entered	on	this	line	or	applied	against	the	MBT	tax	base.
Line 63:	Enter	in	Column	A	the	entire	amount	of	CIT	adjustment	
from	 Form	 4567,	 Line	 58;	 Form	 4590,	 Line	 31;	 or	 Form	 4588,	
Line	28.		Only	a	positive	amount	may	be	entered	on	this	line.
Line 70: The	 totals	 for	 line	 70,	 columns	 A,	 B,	 C,	 and	 D,	 must	
equal	85	percent	of	the	current	year	tax	liability	on	page	1,	line	1.
Include completed Form 4582 as part of the tax return filing.