Michigan Flow-Through Withholding Booklet

Flow-Through Withholding Booklet
Form 5014 (Obsolete)
2018 MICHIGAN
Corporate
Income Tax

S TA N DA R D TA X PAY E R S

This booklet contains information
on completing a Michigan Corporate
I n c o m e Ta x r e t u r n f o r c a l e n d a r ye a r
2 01 8 o r a f i s c a l ye a r e n d i n g i n 2 01 9 .

	 E-filing your return is easy, fast, and secure!
	 V
 isit Treasury’s Web site at www.MIfastfile.org for a
list of e-file resources and how to find an e-file provider.

W W W. M I FA S T F I L E . O R G

F I LI N G D UE DATE:

CALE N DAR FIL ER S — A P R IL 3 0 , 2 01 9
FISCAL F I LER S — TH E L A S T DAY O F T H E FO U R TH
M O NTH AFTER T H E EN D O F T H E TA X Y EA R .

W W W. M I C H I G A N . G OV/ TA X E S
This booklet is intended as a guide to help complete your return. It does not take the place of the law.
Michigan Department of Treasury — 4890 (Rev. 01-19)

Table of Contents
General Information for Standard Taxpayers............ Page 1
Sourcing of Sales to Michigan.................................. Page 8

Corporate Income Tax Penalty and Interest
Computation for Underpaid Estimated Tax
(Form 4899)............................................................ Page 61

Corporate Income Tax Annual Return
(Form 4891)............................................................ Page 13

Unitary Relationships with Flow-Through
Entities (Form 4900).............................................. Page 65

Corporate Income Tax Small Business
Alternative Credit (Form 4893)............................. Page 25

Corporate Income Tax Schedule
of Recapture of Certain Business Tax Credits
(Form 4902)............................................................ Page 71

Corporate Income Tax Schedule
of Shareholders and Officers (Form 4894)......... Page 29
Corporate Income Tax Loss Adjustment
for the Small Business Alternative Credit
(Form 4895)............................................................ Page 37
Corporate Income Tax Unitary Business
Group Affiliates Excluded from the Return
of Standard Taxpayers (Form 4896).................... Page 45
Corporate Income Tax Data on Unitary
Business Group Members (Form 4897).............. Page 49
Non-Unitary Relationships with
Flow-Through Entities (Form 4898)..................... Page 57

Extension of Time to File Michigan Tax
Returns (Form 4)................................................... Page 85
Supplemental Instructions for Standard
Members in Unitary Business Groups.................... Page 87

2018 General Information for Standard Taxpayers
Insurance Companies and Financial Institutions: See the Corporate Income Tax (CIT) Instruction Booklet for Insurance
Companies (Form 4904) or the CIT Instruction Booklet for Financial Institutions (Form 4907) at www.michigan.gov/taxes.

This booklet is intended as a guide to help complete the
Corporate Income Tax (CIT) return. It does not take the place
of the law.

of every member and after elimination of intercompany
transactions. The tax liability threshold of $100 is determined
on a group basis.

Who Files a Standard Return?

Insurance companies and financial institutions will calculate
tax liability using specialized tax bases and rules, which are
covered in separate booklets (see the Insurance Company
Annual Return for Corporate Income and Retaliatory Taxes
(Form 4905) and Form 4908, respectively).

Under the CIT, taxpayer means a C Corporation, insurance
company, financial institution, or a Unitary Business Group
(UBG) liable for tax, interest, or penalty. All taxpayers
(described here as standard taxpayers) other than financial
institutions and insurance companies with apportioned or
allocated gross receipts equal to $350,000 or more and whose
CIT liability is greater than $100 must file a CIT Annual
Return (Form 4891). (See “Filing if Tax Year Is Less Than 12
Months” in this “General Information” section.) The law does
not require the filing of the CIT return by a taxpayer whose
gross receipts apportioned or allocated to Michigan are less
than $350,000 or whose CIT liability is less than or equal to
$100. There is not a separate form for reporting that a taxpayer
has no filing requirement. However, taxpayers without a filing
requirement may choose to file a return to claim a refund of the
estimated payments made or flow-through withholding paid on
their behalf or create and carry forward an available business
loss.
Public Law 86-272: If a taxpayer’s activity is protected under
Public Law (PL) 86-272, but the taxpayer wishes to claim a
refund, the taxpayer must file a Form 4891. When filing this
form, leave lines 12 through 41 and lines 49 through 53 blank,
and include an attachment explaining the circumstances of the
PL 86-272 protection. Line 42 and line 43 must be completed to
report any recapture of credits.
UBGs: If all members of the UBG are claiming PL 86-272
protection, then the UBG will leave lines 12 through 41 and
lines 49 through 53 blank and include a statement explaining
the circumstances of the PL 86-272 protection for each
member.  Lines 42 and 43 of form 4891 must be completed to
report any recapture of credits by the group. (Each member
will leave lines 21 through 35 blank on the CIT Data on
Unitary Business Group Members, Form 4897.) However, as
long as one member of a UBG has nexus with Michigan and
exceeds the protections of PL 86-272, all members of the UBG
— including members protected under PL 86-272 — must
be included when calculating the UBG’s CIT tax base and
apportionment formula. PL 86-272 will only remove income
from the apportionable CIT tax base when all members of the
UBG are protected under PL 86-272.
EXCEPTION: A person that would be a standard taxpayer if
viewed separately is defined and taxed as a financial institution
if it is owned, directly or indirectly, by a financial institution
and is in a UBG with its owner. A person in this situation
will report on the CIT UBG Combined Filing Schedule for
Financial Institutions (Form 4910), which supports the CIT
Annual Return for Financial Institutions (Form 4908).
UBGs: For a UBG (discussed in greater detail below), the
$350,000 filing threshold is calculated by adding gross receipts

Using This Booklet
This CIT booklet includes forms and instructions for all
“standard taxpayers” (all filers except insurance companies and
financial institutions). These forms are designed for calendar
year 2018 and for a fiscal filer with a tax year ending in 2019.
Read the “General Information” section first. The Michigan
Department of Treasury (Treasury) recommends taxpayers and
tax preparers also review the instructions for all forms.

Overview of CIT for Standard Taxpayers
The CIT imposes a tax on all standard taxpayers with
apportioned or allocated gross receipts (annualized, if
applicable) equal to $350,000 or more and whose CIT liability
is more than $100. The CIT tax rate is 6 percent.
The statute offers one non-refundable credit that is available for
standard taxpayers. The Small Business Alternative Credit is
available for qualifying standard taxpayers by calculating the
credit on the CIT Small Business Alternative Credit (Form 4893).
For standard taxpayers, the CIT tax base is the taxpayer’s
federal taxable income (as defined for CIT purposes), with
certain additions and subtractions.

Filing CIT Quarterly Tax Estimates
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.
NOTE: Formerly, taxpayers could pay by check on a monthly
or quarterly basis by remitting a check with a Combined
Return for Michigan Tax (Form 160). Form 160 was replaced.
The new form no longer accommodates CIT payments. As
a result, Form 4913 is the only form that supports a CIT
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.

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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)
Corporate Income Tax Division at 517-636-6925 for alternate
payment methods.

Treasury will continue to accept certain Portable Document
Format (PDF) attachments with CIT e-filed returns. A current
list of defined attachments is available in the CIT “Michigan
Tax Preparer Handbook for Electronic Filing Programs,” which
is available on the Treasury Web site at www.MIfastfile.org by
clicking on “Corporate Income Tax-Michigan Business Tax,”
then “Corporate Income Tax Handbook” for the applicable
tax year. Follow your software instructions for submitting
attachments with an e-filed return.

The estimated payment made with each quarterly return must
be computed on the actual CIT for the quarter, or 25 percent of
the estimated total liability if paying a CIT liability.

If the CIT return includes supporting documentation or
attachments that are not on the predefined list of attachments,
the return can still be e-filed. Follow your software instructions
for including additional attachments. The tax preparer or
taxpayer should retain file copies of all documentation or
attachments.

To avoid interest and penalty charges, estimated payments must
equal at least 85 percent of the total liability for the tax year
and the amount of each estimated payment must reasonably
approximate the tax liability for that quarter. If the prior year’s
tax under the Income Tax Act is $20,000 or less, estimated
tax may be based on the prior year’s total tax liability paid in
four equal installments. (“Four equal installments” describes
the minimum pace of payments that will satisfy this safe
harbor.) 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. Payments at a more
accelerated pace also will qualify. If the year’s tax liability is
$800 or less, estimates are not required.
NOTE: Reliance on the tax liability of the prior year as a
means to avoid interest and penalty charges is only allowed if
you had business activity in Michigan in that prior year and
filed a CIT return for that prior year. A return must be filed
to establish the tax liability for that prior year, even if gross
receipts in the prior year were 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 CIT liability for the current year. There is no prior-year safe
harbor for a taxpayer’s first CIT tax period. For a taxpayer’s
first CIT tax period the estimates must equal at least 85 percent
of the total CIT liability, as explained above.
Amending Estimates
If, after making payments, the estimated tax is substantially
different than originally estimated, recompute the tax and
adjust the payment in the next quarter.

Electronic Filing of CIT Returns
Michigan has an enforced CIT e-file mandate. Software
developers producing CIT preparation software and computergenerated forms must support e-file for all eligible Michigan
forms that are included in their software package. All eligible
CIT returns prepared using tax preparation software or
computer-generated forms must be e-filed.
Treasury will be enforcing the CIT e-file mandate. The
enforcement includes not processing computer-generated paper
returns that are eligible to be e-filed. A notice will be mailed to
the taxpayer, indicating that the taxpayer’s return was not filed
in the proper form and content and must be e-filed. Payment
received with a paper return will be processed and credited to
the taxpayer’s account even when the return is not processed.

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For more information and program updates, including
exclusions from e-file, visit the e-file Web site at
www.MIfastfile.org.
The taxpayer may be required to e-file its federal return. Visit
the Internal Revenue Service (IRS) Web site at www.irs.gov
for more information on federal e-file requirements and the IRS
Federal/State Modernized e-File (MeF) program.

Complete Federal Tax Forms First
Before preparing CIT returns, complete all federal tax forms.
These forms may include:
•	 C Corporations — U.S. Form 1120 and Schedules D, K, 851,
940, 4562, 4797, and 8825.
•	 Limited Liability Companies (LLCs) — Federal forms
listed above if LLC files as a C Corporation for federal return
purposes.
Reference these federal forms to complete Form 4891.
Copies of certain pages from these federal forms must also be
attached to the annual return filed. See the instructions for the
annual return for further details.

Completing Michigan Forms
Treasury captures the information from paper CIT returns
using an Intelligent Character Recognition process. If
completing a paper return, avoid unnecessary delays caused
by manual processing by following the guidelines below so the
return is processed quickly and accurately.
•	 Use black or blue ink. Do not use pencil, red ink, or felt tip
pens. Do not highlight information.
•	 Print using capital letters (UPPER CASE). Capital letters
are easier to recognize.
•	 Print numbers like this: 0123456789. Do not put a
slash through the zero ( ) or seven ( 7 ).
•	 Fill check boxes with an [X]. Do not use a check mark [a].
•	 Leave lines/boxes blank if they do not apply or if the
amount is zero, unless otherwise instructed.
•	 Do not enter data in boxes filled with Xs.

•	 Do not write extra numbers, symbols, or notes on the
return, such as cents, dashes, decimal points (excluding
percentages), or dollar signs, unless otherwise instructed.
Enclose any explanations on a separate sheet unless
instructed to write explanations on the return.
•	 Date format, unless otherwise specified, should be in the
following format: MM-DD-YYYY. Use dashes (-) rather
than slashes (/).
•	 Enter phone numbers using dashes (e.g., 517-555-5555); do
not use parentheses.
•	 Stay within the lines when entering information in boxes.
•	 Report losses and negative amounts with a negative
sign in front of the number (do not use parentheses). For
example, a loss in the amount of $22,459 should be reported
as -22,459.
•	 Percentages should be carried out four digits to the
right of the decimal point. Do not round percentages.
For example, 24.154266 percent becomes 24.1542 percent.
When converting a percentage to a decimal number, carry
numbers out six digits to the right of the decimal point. For
example, 24.154266 percent becomes 0.241542.
•	 Report all amounts in whole dollars. Round down
amounts of 49 cents or less. Round up amounts of 50 cents
or more. If cents are entered on the form, they will be
treated as whole dollar amounts.

Suggested Order of Analysis and Preparation of
a CIT Annual Return
First, determine whether the taxpayer has nexus with
Michigan. Nexus is a legal term that expresses whether a
taxpayer has sufficient connection to Michigan to justify
subjecting the taxpayer to Michigan tax. See Revenue
Administrative Bulletins (RAB) 2013-9 and 2014-5 on
Treasury’s Web site at www.michigan.gov/treasury.
Next, determine whether the taxpayer has $350,000 or more of
gross receipts that are apportioned or allocated to Michigan.
(See “Filing if Tax Year Is Less Than 12 Months” in this
“General Information” section, if applicable.)
Gross receipts means the entire amount received by the
taxpayer from any activity, whether in intrastate, interstate,
or foreign commerce, carried out for direct or indirect gain,
benefit, or advantage to the taxpayer or to others, with certain
exceptions. Gross receipts also include the imputed gross
receipts from any (unitary or non-unitary) flow-through entity
that is not electing to be taxed under MBT and from which
the taxpayer receives a distributive share of income or loss.
The statutory definition of gross receipts is found in Michigan
Compiled Laws (MCL) 206.607(4). Guidance on gross receipts
can be found in the instructions for the CIT Annual Return
(Form 4891).
Gross receipts is a worldwide figure. For a taxpayer that has
nexus only with Michigan, all gross receipts are allocated
to Michigan. A taxpayer that has nexus with Michigan and
at least one other state or foreign country must calculate its
apportionment percentage and multiply its total gross receipts
by that apportionment percentage. See Form 4891, lines 9a
through 9g, and accompanying instructions for this calculation.

The resulting figure is the taxpayer’s gross receipts apportioned
to Michigan.
Gross receipts include the imputed gross receipts from any
(unitary or non-unitary) flow-through entity not electing to
be taxed under MBT and from which the taxpayer receives a
distributive share of income or loss. The imputed gross receipts
attributed to the taxpayer are the apportioned or allocated gross
receipts based on the flow-through entity’s apportionment
percentage multiplied by the percentage of the taxpayer’s share
of distributive income as compared to the total distributive
income of that flow-through entity.
If all of the foregoing considerations determine that a taxpayer
must file a CIT return, standard taxpayers will use Form 4891 to
file for CIT. It is available to all standard taxpayers, and allows
for the calculation of the Small Business Alternative Credit.
For a taxpayer using Form 4891, first complete lines 1 through
39 to calculate Corporate Income Tax Before Credit. At that
point, if the Small Business Alternative Credit will be claimed,
complete the CIT Small Business Alternative Credit (Form
4893). In addition, a taxpayer that is claiming the Small
Business Alternative Credit will need to complete the Schedule
of Shareholders and Officers (Form 4894) to determine if they
qualify for the credit.
After the Small Business Alternative Credit has been
determined on Form 4893, line 14 or line 18, carry the figure to
Form 4891, line 40. Follow the Form 4891 instructions for the
remaining lines.
If preparing a UBG return for a standard taxpayer, complete
the CIT Data on Unitary Business Group Members (Form
4897) for each member first, as this form provides the data that
is required on Form 4891.

Further General Guidance
A UBG must file a combined CIT return. (For a definition of
UBG, and details on filing a combined CIT return, see “UBGs
and Combined Filing” in this “General Information” section.)
Producers of oil and gas must add back expenses and subtract
income that was included in federal taxable income and
resulted from the production of oil and gas if that production of
oil and gas is subject to the Severance Tax on Oil or Gas, 1929
PA 48., and from the production of minerals if that production
is subject to severance tax in PA 410 of 2012. Expenses should
be added back on line 23, and income should be reported on
line 30.
Businesses reporting less than 12 months must annualize
gross receipts to determine whether they are required to file. (See
“Filing if Tax Year Is Less Than 12 Months” in this “General
Information” section for more guidance on annualization.)
If apportioned or allocated gross receipts are below the filing
requirement, there is no legal obligation to file a return or pay
the tax. If you are not legally required to file a return but you
wish to preserve the carryforward of a business loss or claim
a refund of estimated payments or flow-through withholding
paid on behalf of the entity, a return must be filed. There is
no form to notify Treasury that the taxpayer has no CIT filing
requirement.

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LLC. An LLC is classified for CIT purposes according to
its federal tax classification. The following terms, whenever
used in CIT forms, instructions, and statute, include LLCs as
indicated:
•	 S Corporation includes an LLC federally taxed as an S
Corporation, and a member of this LLC is a shareholder.
•	 C Corporation includes an LLC federally taxed as a C
Corporation, and a member of this LLC is a shareholder. A
member or other person performing duties similar to those of
an officer in an incorporated entity is an “officer” in this LLC.
NOTE: In this booklet, the term “corporation,” used without a
C refers to a C Corporation.
NOTE: A person that is a disregarded entity for federal income
tax purposes, including a single member LLC or qualified
subchapter S subsidiary (Q-Sub), is disregarded for purposes of
CIT. If the owner of the disregarded entity files CIT, the activity
of the disregarded entity must be included on that return.

UBGs and Combined Filing
NOTE: UBGs are addressed here, in general. In the
instructions for each form, “Special Instructions for Unitary
Business Groups” are located directly before “Line-by-Line
Instructions.” The areas in the “Line-by-Line Instructions” that
apply only to UBGs are labeled “UBGs.” Additional direction
is found in the “Supplemental Instructions for Standard
Members in UBGs” section of this instruction booklet.
General Overview of Unitary Taxation
More than 20 states have adopted unitary taxation. Unitary
taxation is a method of taxing related persons that, if it applies,
generally treats those related persons as if they were one. There
are specific tests, discussed below, to determine whether two or
more business entities are sufficiently connected by ownership
and business relationships to be treated as a group.
If those tests are satisfied and a UBG is found to exist, in most
cases the members of that UBG will file a single CIT return.
One member will be designated as the group’s representative
for filing the return and corresponding with Treasury. This
member is referred to throughout these instructions as the
designated member (DM). Included in that return will be
separate forms that report income, deductions, and activities
separately by member, and then the combined amounts are
entered on the Form 4891. References in the instructions to
“the taxpayer” generally will refer to the group rather than any
one of its members.
This is a simplification for introductory purposes, and there
are many details and exceptions described throughout the CIT
forms and instructions. In particular, tax credits, transactions
between members, and the presence of financial institutions or
insurance companies in the group require careful attention.
One key issue in dealing properly with unitary taxation is to
recognize that it is not limited to large, multi-state companies.
Businesses of any size and any geographic extent may find that
they are members of a UBG.
Determining the Existence and Membership of a UBG
Unitary Business Group means a group of United States

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persons that are corporations, insurance companies, or financial
institutions, other than a foreign operating entity, that satisfies
the control test and relationship test.
United States person is defined in Internal Revenue Code (IRC)
§ 7701(a)(30). A foreign operating entity is defined by statute in
Michigan Compiled Laws (MCL) 206.607(3).
Control Test and Relationship Tests. For information on
CIT topics, see the Treasury Web site at www.michigan.gov/
treasury. Revenue Administrative Bulletin (RAB) 2013-1
addresses the UBG Control Test and Relationship Tests.
Role of the Designated Member: The DM speaks, acts, and
files the CIT return on behalf of the UBG for CIT purposes.
Only the DM may file a valid extension request for the UBG.
Treasury maintains the UBG’s CIT tax data (e.g., prior CIT
returns, overpayment credit forward) under the DM’s name and
Federal Employer Identification Number (FEIN).

Exemption Guidelines for CIT
The following may be exempt from CIT:
•	 Most persons who are exempt from federal income tax
under the IRC.
•	 Nonprofit cooperative housing corporations.
•	 Foreign person that is domiciled in a member country of
the North American free trade agreement if the foreign
person is domiciled in a subnational jurisdiction that does
not impose an income tax on a similarly situated person
domiciled in Michigan. For purposes of this provision,
foreign person is defined in MCL 206.625(5)(c).
•	 Domestic International Sales Corporations (DISCs) as
defined in IRC 992.
•	 A person that is a self-insurer group operating under an
agreement entered pursuant to section 611(2) of the worker’s
disability compensation act of 1969, 1969 PA 317, MCL
418.611.
If a taxpayer is exempt under the first bullet above, but has
unrelated business taxable income as defined in the IRC; that
business activity is subject to the CIT and a return will be
required if the apportioned or allocated gross receipts are
$350,000 or more from the unrelated business activity.
Foreign persons that are not exempt from the CIT must
calculate business income, gross receipts, CIT tax base, and the
sales factor differently than domestic taxpayers. Refer to MCL
206.625(2)-(4) for details.
For a complete list of exemptions, consult the CIT (PA 38 of
2011, as amended) at www.legislature.mi.gov.
If a taxpayer is exempt and has no unrelated business taxable
income, filing a CIT return is not required.

Flow-Through Withholding
On January 1, 2012, several changes to the Income Tax Act
of 1967 (ITA) went into effect establishing a new withholding
requirement for flow-through entities that have members,
partners, or shareholders that are corporations or other flowthrough entities. These withholding requirements are known as
Flow-Through Withholding (FTW).

Under FTW, every flow-through entity with business activity in
Michigan that reasonably expects to accrue more than $200,000
in apportioned or allocated business income for the tax year
must withhold on the distributive share of each member that is
a corporation or an intermediate flow-through entity at the CIT
rate of 6 percent. “Business income” for this purpose is defined
using the same rules as those contained in the CIT. However,
because FTW is concerned with the business income of flowthrough entities and not corporations, business income for
flow-through entities is further defined to include payments and
items of income and expense that are attributable to business
activity of the flow-through entity and separately reported to its
members. The distributive share of business income of a flowthrough entity is subject to FTW, and the CIT, even if it is not
actually distributed or paid to the member.
When a corporation had taxes withheld under FTW, the
amount is treated as a CIT payment that will be applied
against the corporation’s CIT liability. A corporation that
has had taxes withheld on its distributive share of flowthrough entity business income is not required to make
quarterly estimated payments on that income. To claim these
payments, the corporation will be required to file Form 4891.
If the corporation is a member of a UBG, then these payments
shall be claimed on the member’s Form 4897, and the sum
of all members’ FTW payments shall be claimed on the
UBG’s Form 4891. If the corporation is below one of the CIT
filing thresholds then it may file a Form 4891 to claim these
payments.
The flow-through entity is required to notify the members it
has withheld on of the amount of withholding paid on behalf of
that member as well as other information that the member will
need to complete its CIT return. There is no set method for this
reporting to be done. Treasury has recommended that this be
reported to the members as a supplemental attachment to the
federal Schedule K-1 that is required to be submitted to each
member. For a corporation, this information will include the:
•	
•	
•	
•	

FEIN of the flow-through entity
Tax year of the flow-through entity
FTW paid on behalf of that member
Member’s tentative distributive share of the flow-through
entity’s business income
•	 Flow-through entity’s sales that have been sourced to
Michigan
•	 Flow-through entity’s total sales.
There are also several exemptions from the FTW requirements,
which are explained in the FTW Forms and Instructions
Booklet (Form 5014) and on Treasury’s Web site at www.
michigan.gov/ftw.
NOTE: Under Public Act 158 of 2016, Flow-Through
Withholding is no longer required for flow-through entities’
(FTEs’) tax years beginning after June 30, 2016. Treasury
will no longer support the processing of forms or withholding
payments for FTEs with tax years beginning after that date.   
For FTEs with tax years beginning before July 1, 2016, a full
year’s withholding payments and annual return should be paid
and filed.

What Lead Form to File
File Form 4891 if:
•	 Apportioned or allocated gross receipts (annualized, if
applicable) are $350,000 or more and the standard taxpayer’s
CIT tax liability is greater than $100.
•	 Apportioned or allocated gross receipts (annualized, if
applicable) are less than $350,000, and:
○○ A refund is claimed, or
○○ A loss was generated during the filing period and will
create a carry forward to the next year, or
○○ A CIT business loss carryforward from a prior year is
reported (filing in this case is necessary to move the
carryforward to the following year).
This list does not cover all situations. See instructions for each
form for more information.
Different primary returns and instruction booklets are
available for insurance companies (Form 4905) and financial
institutions (Form 4908). The tax base for each of these
special taxpayer categories is fundamentally different than for
standard taxpayers.

Filing if Tax Year Is Less Than 12 Months
In most cases, annual returns must be filed for the same period
as federal income tax returns. If the filing period is less than 12
months, annualize to determine if there is a filing requirement,
which forms to file, and eligibility for a Small Business
Alternative Credit. Do not use annualized numbers on a return
unless specified; use them only to determine annual return and
estimated payment filing requirements, and qualifications for
the Small Business Alternative Credit.
Tax year means the calendar year, or the fiscal year ending
during the calendar year, upon the basis of which the tax base
of a taxpayer is computed. If a return is made for a fractional
part of a year, tax year means the period for which the return is
made.
A taxpayer that has a 52- or 53-week tax year beginning not
more than seven days before or after December 31 of any year
is considered to have a tax year beginning after December of
that tax year. (NOTE: While the examples below are for a prior
tax year, the concepts apply to the current tax year.)
Example 1: A taxpayer with a federal tax year beginning on
Saturday, December 28, 2013, will be treated as follows:
•	 2013 tax year end of December 31, 2013.
•	 Due date of April 30, 2014.
•	 2014 tax year beginning January 1, 2014.
Example 2: A taxpayer with a federal tax year ending on
Friday, January 3, 2014, will be treated as follows:
•	 2013 tax year end of December 31, 2013.
•	 Due date of April 30, 2014.
•	 2014 tax year beginning on January 1, 2014.
Example 3: A 52- or 53-week year closing near the end of
January is common in the retail industry. Such a taxpayer will

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be treated as follows:
•	 2013-14 fiscal year end will be January 31, 2014.
•	 Due date will be May 31, 2014.
•	 2014-15 fiscal year will begin on February 1, 2014.
Annualizing
Multiply each amount required, including gross receipts,
business income, and prior year’s tax liability, by 12 and divide
the result by the number of months the business operated.
Generally, a business is considered in business for one month if
the business operated for more than half the days of the month.
A business whose entire tax year is 15 days or less, however, is
considered in business for one month.
•	 If annualized apportioned or allocated gross receipts are
$350,000 or more and the CIT tax liability is greater than
$100, file an annual return.
•	 Annualize prior year’s CIT tax liability to determine whether
estimates may be based on that liability. If the prior year’s
annualized liability is $20,000 or less, estimates may be based
on the annualized amount if paid in four equal installments.
○○ Example: A fiscal year taxpayer with a tax year ending
in June files a six-month return ending June 2014
reporting a tax liability of $9,000. Estimates for the tax
year ending June 2015 may be based on the annualized
liability of $18,000. Estimates must be paid in four
equal installments of $4,500.
See appropriate forms (CIT Small Business Alternative Credit
(Form 4983), and CIT Schedule of Shareholders and Officers
(Form 4894)) for annualization instructions pertaining to the
Small Business Alternative Credit.

Due Dates of Annual Returns
For the 2018 calendar year, all annual returns are due April 30,
2019. All fiscal filers with a federal tax year ending in 2019,
will be required to file the 2018-2019 fiscal year return by the
last day of the fourth month after the end of the tax year. An
extension of time to file is not an extension of time to pay.

Additional Filing Time
If additional time is needed to file an annual tax return, request
a Michigan extension by filing an Application for Extension of
Time to File Michigan Tax Returns (Form 4).
Filing a federal extension request with the IRS does not
automatically grant a CIT extension. The IRS does not notify
state governments of extensions.
Extension applications must be postmarked on or before the
due date of an annual return.
Although Treasury may grant extensions for filing CIT returns,
it will not extend the time to pay. Extension applications
received without proper payment will not be processed. Penalty
and interest will accrue on the unpaid tax from the original due
date of the return.
Properly filed and paid estimates along with the amount
included on the extension application will be accepted as
payment on a tentative return, and an extension may be granted.
It is important that the application is completed correctly.
Once a properly prepared and timely filed application along

6

with appropriate estimated tax payments are received, Treasury
will grant an extension of eight months to file the tax return.
A written response will be sent to the legal address on file
when a valid extension application is received.
If a CIT extension is filed on time but the total payments
received by the original due date are less than 90 percent of the
tax liability, a 10 percent negligence penalty may apply.
An extension of time to file will also extend the statute of
limitations.

Amending a Return
To amend a current or prior year annual return, complete the
Michigan CIT Amended Return (Form 4892) that is applicable
for that year and attach a separate sheet explaining the reason
for the changes. Include all schedules filed with the original
return, even if not amending that schedule. Do not include a
copy of the original return with your amended return.
Current and past year forms are available on Treasury’s Web
site at www.michigan.gov/treasuryforms.
To amend a return to claim a refund, file within four years of
the due date of the original return (including valid extensions).
Interest will be paid beginning 45 days after the claim is filed
or the due date, whichever is later.
If amending a return to report a deficiency, penalty and interest
may apply from the due date of the original return.
If any changes are made to a federal income tax return that
affect the CIT tax base, filing an amended return is required.
To avoid penalty, file the amended return within 120 days after
the final determination by the IRS.

Computing Penalty and Interest
Annual and estimated returns filed late or without sufficient
payment of the tax due are subject to a penalty of 5 percent of
the 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.
Compute penalty and interest for underpaid estimates using the
CIT Penalty and Interest Computation for Underpaid Estimated
Tax (Form 4899). If a taxpayer prefers not to file this form,
Treasury will compute the penalty and interest and send a bill.
The following chart shows the interest rate that applies to each
filing period. A new interest rate is set at 1 percent above the
adjusted prime rate for each six-month period.
Beginning Date

Rate

Daily Rate

January 1, 2018

5.15%

0.0001411

July 1, 2018

5.41%

0.0001482

January 1, 2019

5.9%

0.0001616

For a list of interest rates, click on “Reports and
Legal Resources” on the Treasury Web site at
www.michigan.gov/treasury/. Interest rates are updated in
Revenue Administrative Bulletins (RABs).

Signing the Return
All returns must be signed and dated by the taxpayer or the
taxpayer’s authorized agent. This may be the owner, corporate
officer, or association member. The corporate officer may be
the president, vice president, treasurer, assistant treasurer, chief
accounting officer, or any other corporate officer (such as tax
officer) authorized to sign the corporation’s tax return.
If someone other than the above prepared the return, the preparer
must give his or her business address and telephone number.
Print the name of the authorized signer and preparer in the
appropriate area on the return.
Assemble the returns and attachments (in sequence order) and
use a clip in the upper-left corner or rubber band the pages
together. (Do not staple a check to the return.) In an e-filed
return, the preparation software will assemble the forms and
PDF attachments in the proper order automatically.
IMPORTANT REMINDER: Failure to include all the
required forms and attachments will delay processing and may
result in reduced or denied refund or credit forward or a bill for
tax due.
SIGNING AN E-FILED RETURN: An electronic tax
return must be signed by an authorized tax return signer, the
Electronic Return Originator (ERO), if applicable, and the paid
tax preparer, if applicable. NOTE: If the return meets one of
the exceptions to the e-file mandate and is being filed on paper,
it must be manually signed and dated by the taxpayer or the
taxpayer’s authorized agent.
The CIT Fed/State e-file signature process is as follows:
Fed/State Returns: Michigan will accept the federal signature
method. Michigan does not require any additional signature
documentation.
State Stand Alone Returns: State Stand Alone returns must
be signed using Form MI-8879 (also called the Michigan
e-file Authorization for Business Taxes MI-8879, Form
4763). Returns are signed by entering the taxpayer PIN in the
software after reading the perjury statement displayed in the
software. The taxpayer PIN will be selected by the taxpayer, or
the taxpayer may authorize his or her tax preparer to select the
taxpayer PIN.
The MI-8879 (Form 4763) will be printed and contain the
taxpayer PIN. The tax preparer will retain Form MI-8879 in
his or her records as part of the taxpayer’s printed return. CIT
State Stand Alone e-filings submitted without a taxpayer PIN
will be rejected by Treasury. Do not mail Form MI-8879 to
Treasury and do not include Form MI-8879 as an attachment
with the e-file return.

Mailing Addresses
Mail the annual return and all necessary schedules to:
With payment:
Michigan Department of Treasury
PO Box 30804
Lansing MI 48909

Without payment:
Michigan Department of Treasury
PO Box 30803
Lansing MI 48909
Mail an extension application (Form 4) to:
Michigan Department of Treasury
PO Box 30774
Lansing MI 48909-8274
Mail CIT quarterly estimate payments (Form 4913) to:
Michigan Department of Treasury
PO Box 30774
Lansing MI 48909-8274
Courier delivery service mail should be sent to:
Michigan Department of Treasury
7285 Parsons Dr.
Dimondale MI 48821
Make all checks payable to “State of Michigan.” Print
taxpayer’s FEIN or Michigan Treasury (TR) assigned number,
the tax year, and “CIT” on the front of the check. Do not staple
the check to the return.

Correspondence
An address change or business discontinuance can be
reported online by using Michigan Treasury Online (MTO),
Business Tax Services. See www.michigan.gov/mtobusiness
for information. In the alternative, Notice of Change or
Discontinuance (Form 163), can be found online at www.
michigan.gov/treasuryforms.
Mail correspondence to:
Michigan Department of Treasury
Business Taxes Division, CIT Unit
PO Box 30059
Lansing MI 48909

To Request Forms
Internet
Current and past year forms are available on Treasury’s Web site
at www.michigan.gov/treasuryforms.
Alternate Format
Printed material in an alternate format may be obtained by
calling 517-636-6925.
TTY
Assistance is available using TTY through the Michigan Relay
Service by calling 711.

Revenue Administrative Bulletins (RABs)
Treasury provides updates via RABs on the Treasury Web site
at www.michigan.gov/treasury/. Currently relevant RABs for
the CIT are:
•	 2013-9, CIT Definition of “Actively Solicits”
•	 2013-1, CIT Unitary Business Group Control Test and
Relationship Tests
•	 2014-5, Michigan CIT Nexus Standards
•	 2015-20, Where Benefit of Services is Received
•	 2018-23, Interest Rate

7

Sourcing of Sales to Michigan under the Corporate Income Tax (CIT)
TANGIBLE AND REAL PROPERTY
Sale of tangible personal property
Property is shipped or delivered, or, in the case of electricity
and gas, the contract requires the property to be shipped or
delivered, to any purchaser within this State based on the
ultimate destination at the point that the property comes to
rest regardless of the free on board point or other conditions of
the sales. Property stored in transit for 60 days or more prior
to receipt by the purchaser or the purchaser’s designee, or in
the case of a dock sale not picked up for 60 days or more, shall
be deemed to have come to rest at this ultimate destination.
Property stored in transit for fewer than 60 days prior to receipt
by the purchaser or the purchaser’s designee, or in the case of a
dock sale picked up before 60 days, is not deemed to have come
to rest at this ultimate destination.
NOTE: Tangible personal property means that term as defined
in Section 2 of the Use Tax Act, Public Act (PA) 94 of 1937,
MCL 205.92.
Sale, lease, rental or licensing of real property
Property is located in this State.
Lease or rental of tangible personal property
To the extent the property is used in this State. Extent of use
is determined by multiplying the receipts by a fraction, the
numerator is the number of days of physical location of the
property in this State during the lease or rental period in the
tax year and the denominator is the number of days of physical
location of the property everywhere during all lease or rental
periods in the tax year.
If the physical location of the property during the lease or
rental period is unknown or cannot be determined, the tangible
personal property is used in the state in which the property
was located at the time the lease or rental payer obtained
possession.
Lease or rental of mobile transportation property
owned by the taxpayer
To the extent property is used in this State. For example, the
extent an aircraft will be deemed to be used is determined
by multiplying all the receipts from the lease or rental of the
aircraft during the tax year by a fraction, the numerator of the
fraction is the number of landings of the aircraft in this State
in the tax year and the denominator of the fraction is the total
number of landings of the aircraft in the tax year.

Property is used by the purchaser in this State. If property is
used in more than one state, royalties or other income will be
apportioned to this State pro rata according to the portion of
use in this State.
If the portion of use in this State cannot be determined, the
royalties or other income will be excluded from both the
numerator and the denominator.
If the purchaser of intangible property uses it or the rights to
the intangible property, in the regular course of its business
operations in this State, regardless of the location of the
purchaser’s customers.

SALES FROM PERFORMANCE OF SERVICES (IN
GENERAL)
Receipts from performance of services, in general
Recipient of services receives all of the benefit of the services
in this State.
If the recipient of the services receives some of the benefit of
the services in this State, receipts are included in the numerator
of the apportionment factor in proportion to the extent that the
recipient receives benefit of the services in this State.
For more information regarding how a taxpayer determines
where the recipient of services performed receives the benefit
of those services and on other CIT topics, see the Michigan
Department of Treasury (Treasury) Web site at www.
michigan.gov/treasury/. Review “Corporate Income Tax”
under “Taxes.” Treasury also posts updates via Revenue
Administrative Bulletin (RAB). Also see RAB 2015-20, Where
Benefit of Services is Received,

FINANCIAL SERVICES
Sales derived from securities brokerage services
including commissions on transactions, the spread
earned on principal transactions in which broker buys
or sells from its account, total margin interest paid
on behalf of brokerage accounts owned by broker’s
customers, and fees and receipts of all kinds from
underwriting of securities
Multiply the total dollar amount of receipts from securities
brokerage services by a fraction, the numerator of which is the
sales of securities brokerage services to customers within this
State, and the denominator of which is the sales of securities
brokerage services to all customers.

INTANGIBLE PROPERTY (IN GENERAL)

If receipts from brokerage services can be associated with
a particular customer, but it is impractical to associate the
receipts with the address of the customer, then the address of
the customer will be presumed to be the address of the branch
office that generates the transactions for the customer.

Royalties and other income received for use of or for
the privilege of using intangible property including
patents, knowhow, formulas, designs, processes,
patterns, copyrights, trade names, service names,
franchises, licenses, contracts, customer lists,
custom computer software, or similar items

Sales of services derived directly or indirectly from
sale of management, distribution, administration,
or securities brokerage services to, or on behalf of,
a regulated investment company or its beneficial
owners, including receipts derived directly or
indirectly from trustees, sponsors, or participants

If the extent of use of any transportation property within this
State cannot be determined, the receipts are in this State if the
property has its principal base of operations in this State.

8

of employee benefit plans that have accounts in a
regulated investment company
To the extent the shareholders of the regulated investment
company are domiciled within this State. For this purpose,
domicile means the shareholder’s mailing address on the
records of the regulated investment company.
If the regulated investment company or the person providing
management services to the regulated investment company has
actual knowledge that the shareholder’s primary residence or
principal place of business is different than the shareholder’s
mailing address, then the shareholder’s primary residence or
principal place of business is the shareholder’s domicile.
A separate computation must be made with respect to receipts
derived from each regulated investment company. Total
amount of sales attributable to this State must be equal to
total receipts received by each regulated investment company
multiplied by a fraction determined as follows:
•	 The numerator of the fraction is the average of the sum of
the beginning-of-year and end-of-year number of shares
owned by the regulated investment company shareholders
who have their domicile in this State.
•	 The denominator of the fraction is the average of the sum
of the beginning-of-year and end-of-year number of shares
owned by all shareholders.
•	 For purposes of the fraction, the year will be the tax year of
the regulated investment company that ends with or within
the tax year of the taxpayer.
Receipts from the origination of a loan or gains from
sale of a loan secured by residential real property
Only if one or more of the following apply:
•	 Real property is located in this State.
•	 Real property is located both within this State and one or
more other states and more than 50 percent of the fair
market value of the real property is located within this State.
•	 More than 50 percent of the real property is not located in
any one state and the borrower is located in this State.*
Interest from loans secured by real property
Property is located in this State.
If property is located both in this State and one or more other
states, and more than 50 percent of the fair market value of the
real property is located within this State.
If more than 50 percent of the fair market value of the real
property is not located within any one state, if the borrower is
located in this State.*
The determination of whether the real property securing a loan
is located in this State will be made at the time the original
agreement was made and any and all subsequent substitutions
of collateral will be disregarded.
Interest from a loan not secured by real property
Borrower is located in this State*

Gains from sale of a loan not secured by real
property, including income recorded under coupon
stripping rules of IRC 1286
Borrower is located in this State*
Credit card receivables, including interest, fees, and
penalties from credit card receivables and receipts
from fees charged to cardholders, such as annual fees
Billing address of the cardholder is located in this State
Sale of credit card or other receivables
Billing address of the customer is located in this State
Credit card issuer’s reimbursements fees
Billing address of the cardholder is located in this State.
Merchant discounts, computed net of any cardholder
chargebacks, but not reduced by any interchange
transaction fees or by any issuer’s reimbursement
fees paid to another for charges made by its
cardholders
Commercial domicile of the merchant is located in this State.
Loan servicing fees derived from loans of another
secured by real property
Real property is located in this State.
Real property is located both in and out of this State and one or
more states if more than 50 percent of the fair market value of the
real property is located in this State.
More than 50 percent of the fair market value of the real
property is not located in any one state, and the borrower is
located in this State.*
If the location of the security cannot be determined, then loan
servicing fees for servicing either the secured or the unsecured
loans of another are in this State if the lender to whom the loan
servicing service is provided is located in this State.
Loan servicing fees derived from loans of another not
secured by real property
Borrower is located in this State.*
If location of the security cannot be determined, then loan
servicing fees for servicing either the secured or the unsecured
loans of another are in this State if the lender to whom the loan
servicing service is provided is located in this State.
Sale of securities and other assets from investment
and trading activities, including, but not limited to,
interest, dividends, and gains
Attributable to the State if the person’s customer is in this
State, or if the location of the person’s customer cannot be
determined, both of the following:
•	 Interest, dividends, and other income from investment
assets and activities and from trading assets and activities,
including, but not limited to, investment securities; trading

*A borrower is considered located in this State if the borrower’s billing address is in this State.

9

account assets; federal funds; securities purchased and sold
under agreements to resell or repurchase; options; futures
contracts; forward contracts; notional principal contracts such
as swaps; equities; and foreign currency transactions are in
this State if the average value of the assets is assigned to a
regular place of business of the taxpayer within this State.
○○ Interest from federal funds sold and purchased and
from securities purchased under resale agreements and
securities sold under repurchase agreements are in this
State if the average value of the assets is assigned to
a regular place of business of the taxpayer within this
State.
○○ Amount of receipts and other income from investment
assets and activities is in this State if assets are assigned
to a regular place of business of the taxpayer within this
State.
•	 Amount of receipts from trading assets and activities,
including, but not limited to, assets and activities in the
matched book, in the arbitrage book, and foreign currency
transactions, but excluding amounts otherwise sourced in
this section, are in this State if the assets are assigned to a
regular place of business of the taxpayer within this State.

TRANSPORTATION SERVICES
Receipts from transportation services
Generally, receipts will be proportioned based on the ratio that
revenue miles of the person in this State bear to the revenue
miles of the person everywhere. Revenue mile means the
transportation for consideration of 1 net ton in weight or 1
passenger the distance of 1 mile.
For transportation services that source sales based on revenue
miles, enter a sales amount on Form 4891, Line 9a, by
multiplying total sales of the transportation service by the ratio
of Michigan revenue miles over revenue miles everywhere for
that type of transportation service. Revenue mile means the
transportation for a consideration of one net ton in weight or
one passenger the distance of one mile.
Receipts from maritime transportation services will be
attributable to this State as follows:
•	 50 percent of those receipts that either originate or terminate
in this State.

Michigan Ton Miles
Total Ton Miles

Michigan Passenger Miles
Total Passenger Miles

=

x

Receipts from
Transportation of Property

x

Receipts from
Transportation of Passengers

+

Michigan Sales from Transportation Services

•	 Oil by pipeline – Proportioned based on the ratio that the
receipts for the barrel miles transported in this State bear to
the receipts for the barrel miles transported by the person
everywhere.
•	 Gas by pipeline – Proportioned based on the ratio that the
receipts for the 1,000 cubic feet miles transported in this
State bear to the receipts for the 1,000 cubic feet miles
transported by the person everywhere.
NOTE: If a taxpayer can show that revenue mile information
is not available or cannot be obtained without unreasonable
expense to the taxpayer, receipts attributable to this State will
be that portion of the revenue derived from transportation
services performed everywhere that the miles of transportation
services performed in this State bears to the miles of
transportation services performed everywhere. If Treasury
determines that the information required for the calculations
above are not available or cannot be obtained without
unreasonable expense to the taxpayer, Treasury may use other
available information that in the opinion of Treasury will result
in an equitable allocation of the taxpayer’s receipts to this State.
NOTE: Only transportation services are sourced using revenue
miles. To the extent the taxpayer has business activities or
revenue streams not from transportation services, those
receipts should be sourced accordingly.

TELECOMMUNICATIONS SERVICES
NOTE: Terms used to describe the sale of telecommunications
service or mobile telecommunications service have the same
meaning as those terms defined in the Streamlined Sales and
Use Tax Agreement administered under the Streamlined
Sales and Use Tax Administration Act, PA 174 of 2004, MCL
205.801 to 205.833.

•	 100 percent of those receipts that both originate and
terminate in this State.

Sale of telecommunications service
telecommunications service, in general

Receipts attributable to this State of a person whose business
activity consists of the transportation of:

Customer’s place of primary use of the service is in this State.
As used here, place of primary use means the customer’s
residential street address or primary business street address
where the customer’s use of the telecommunications service
primarily occurs.

•	 Property and individuals – Proportioned based on the
total receipts for passenger miles and ton mile fractions,
separately computed and individually weighted by the
ratio of receipts from passenger transportation to total
receipts from all transportation, and by the ratio of receipts
from freight transportation to total receipts from all
transportation, respectively.

10

or

mobile

For mobile telecommunications service, the customer’s
residential street address or primary business street address is
the place of primary use only if it is within the licensed service
area of the customer’s home service provider.

Sale of telecommunications service sold on an
individual call-by-call basis
Call both originates and terminates in this State.
Call either originates or terminates in this State and the service
address is located in this State.
Sale of postpaid telecommunications service
Origination point of the telecommunication signal (as first
identified by the service provider’s telecommunication system or
as identified by information received by the seller from its service
provider if the system used to transport telecommunication
signals is not the seller’s) is located in this State.
Sale of prepaid telecommunications service
prepaid mobile telecommunications service

or

Purchaser obtains the prepaid card or similar means of
conveyance at a location in this State.
Recharging a prepaid telecommunications service or
mobile telecommunications service
Purchaser’s billing information indicates a location in this State.
Sale of private communication services
100 percent of the receipts from the sale of each channel
termination point within this State.
100 percent of the receipts from the sale of the total channel
mileage between each termination point within this State.
50 percent of the receipts from the sale of service segments for
a channel between two customer channel termination points,
one of which is located in this State and the other is located
outside of this State, which segments are separately charged.
Receipts from the sale of service for segments with a channel
termination point located in this State and in two or more other
states or equivalent jurisdictions, and which segments are
not separately billed, are in this State based on a percentage
determined by dividing the number of customer channel
termination points in this State by the total number of customer
channel termination points.
Sale of billing services and ancillary services for
telecommunications service
Based on the location of the purchaser’s customers.
If the location of the purchaser’s customers is not known or
cannot be determined, the sale of billing services and ancillary
services for telecommunications service are in this State based
on the location of the purchaser.
To access a carrier’s network or from the sale of
telecommunications services for resale

100 percent of receipts from interstate end user access line
charges, if customer’s service address is in this State. As
used here, “interstate end user access line charges” includes,
but is not limited to, the surcharge approved by the federal
communications commission and levied pursuant to 47 CFR 69.
Gross receipts from sales of telecommunications services to
other telecommunication service providers for resale will be
sourced to this State using the apportionment concepts used
for non-resale receipts of telecommunications services if the
information is readily available to make that determination. If
the information is not readily available, then the taxpayer may
use any other reasonable and consistent method.
Taxpayer whose business activities include live radio
or television programming as described in Subsector
Code 7922 of Industry Group 792 or are included in
Industry Groups 483, 484, 781, or 782, under the SIC
Code as compiled by the U.S. Department of Labor, or
any combination of the business activities included in
those groups
Media receipts are attributable to this State only if the
commercial domicile of the customer is in this State and the
customer has a direct connection or relationship with the
taxpayer pursuant to a contract under which the media receipts
are derived.
Media receipts from the sale of advertising are attributable to
this State if the customer of that advertising is commercially
domiciled in this State and receives some of the benefit of
the sale of that advertising in this State. Sales are included in
proportion to the extent that the customer receives the benefit
of the advertising in this State.
If the taxpayer is a broadcaster and if the customer receives
some of the benefit of the advertising in this State, the media
receipts for that sale of advertising from that customer will be
proportioned based on the ratio that the broadcaster’s viewing
or listening audience in this State bears to its total viewing or
listening audience everywhere.
Media property means motion pictures, television programs,
Internet programs and Web sites, other audiovisual works, and
any other similar property embodying words, ideas, concepts,
images, or sound without regard to the means or methods of
distribution or the medium in which the property is embodied.
Media receipts means receipts from the sale, license, broadcast,
transmission, distribution, exhibition, or other use of media
property and receipts from the sale of media services. Media
receipts do not include receipts from the sale of media property
that is a consumer product that is ultimately sold at retail.
Media services means services in which the use of the media
property is integral to the performance of those services.

OTHER

100 percent of the receipts from access fees attributable to
intrastate telecommunications service that both originates and
terminates in this State.

Default for all other receipts not otherwise sourced
here

50 percent of the receipts from access fees attributable to
interstate telecommunications service if the interstate call
either originates or terminates in this State.

Sourced based on where the benefit to the customer is received,
or if where the benefit to the customer is received cannot be
determined, sourced to the customer’s location.

11

12

Michigan Department of Treasury
4891 (Rev. 04-18), Page 1 of 2

This form cannot be used
as an amended return; use
the CIT Amended Return
(Form 4892).

2018 MICHIGAN Corporate Income Tax Annual Return
Issued under authority of Public Act 38 of 2011.
MM-DD-YYYY

MM-DD-YYYY

1. Return is for calendar year 2018 or for tax year beginning:
2. Taxpayer Name (print or type)

and ending:
3. Federal Employer Identification Number (FEIN)

4. Street Address
City

State

5. NAICS (North American Industry Classification System) Code

ZIP/Postal Code

6. If a Final Return, Enter Effective End Date

Check if a special sourcing formula
for transportation services is used in
the sourcing of Sales to Michigan.

8.
Check if Filing Michigan Unitary Business Group Return.
(Include Form 4896, if applicable, and Form 4897.)

7a.

Country Code

7b. Affiliated Group Election year (MM-DD-YYYY)

Important: If the tax liability on line 41 is less than or equal to $100, or the gross receipts on line 11 are less than $350,000, you are not required to file this
return or pay the tax. Short period filers, see instructions.
9. Apportionment Calculation — If any amount in line 9a through 9e is zero, enter zero. All lines must be completed.
a. Michigan sales of the corporation/Unitary Business Group (UBG) (if no Michigan sales, enter zero)....... 9a.
b. Proportionate Michigan sales from unitary Flow-Through Entities (FTEs) (include Form 4900)................ 9b.
c. Michigan sales. Add lines 9a and 9b.......................................................................................................... 9c.
d. Total sales of the corporation/UBG............................................................................................................. 9d.
e. Proportionate total sales from unitary FTEs (include Form 4900)................................................................ 9e.
f. Total sales. Add lines 9d and 9e..................................