Retroactive tax law changes 20211/1/2024 ![]() ![]() Members claiming credits and adjustments must include a copy of these reports (or, if the template is not used, other equivalent documentation), as applicable, with their annual return (MI-1040, MI-1041, or 4891).ĭo not submit this report with the Annual Flow-Through Entity Tax Return (Form 5772), elsewhere on MTO, or to the Business Taxes Division unless requested.įTE Template to Report to Members Template Exampleįood Holdco, LLC owns a share of Bagels LLC, Chocolates LLC, and Snacks LLC in the following proportions, respectively: 33.33%, 44.44%, and 55.55%. There are two tabs, one for the reporting of “direct” credits and adjustments, and the other for the reporting of “indirect”/ “tiered” credits and adjustments. The templates are suggested but not required. Report to Members Templatesīelow are suggested templates that FTE taxpayers, or any other flow-through entity in a tiered structure, can use to report FTE tax information to their members. Business income tax base allocable to direct members subject to tax under CIT, in total and by memberįor information about reporting to members, see Treasury's Notice Regarding the Implementation of the Michigan Flow-Through Entity Tax and the templates below.Taxable income, calculated on the return and allocated to members that are individuals, trusts, estates, or other flow-through entities.Michigan-sourced income from non-electing flow-through entities.Positive business income received from all other flow-through entities.For planning purposes, taxpayers will need to provide the following information: Entities that have not elected to pay the flow-through entity tax as of January 18, 2022, should remit any unpaid estimated payments when making a timely election to pay the tax.įor example, calendar year filers that have made the election before January 18, 2022, should include the estimates previously due from the first, second, and third quarters with the fourth quarter estimated tax payment due on January 18, 2022.Įlectronic filing will be available March 10, 2022, through MTO. Flow-through entities that elected to pay the flow-through entity tax before January 18, 2022, should include any unpaid estimates with the next quarterly estimated payment due. Penalty and interest will not be levied on any quarterly estimated tax return or payment that was due prior to the enactment of the tax. Special Instruction for 2021īecause the flow-through entity tax is retroactive for tax year 2021, certain estimated payments otherwise due throughout 2021 may not have been made. Taxpayers are subject to penalty and interest for failure to pay estimated payments as required under the Revenue Act. ![]() For fiscal year filers, the estimates must be made in equal installments on dates that correspond to the due dates in the calendar year. Estimate Paymentsįor calendar year filers, the estimates must generally be made in equal installments on or before April 15, June 15, September 15, and January 15. See Flow-Through Entity Payments Instructions or visit the MTO Help Center for help making payments or using MTO. In addition, other payments made by flow-through entities (e.g., for composite return estimated payments) or members (e.g., for MI-1040 estimated payments) will not be applied toward the flow-through entity tax and will not constitute an election into the tax.įor 2021, while the initial election into the flow-through entity tax and any required payments aren't due until 2022, payments can be made using the Fast Pay option under Guest Services beginning December 29, 2021. Note: Payments submitted outside of MTO will not be accepted or considered as a valid election for the flow-through entity tax. A payment submitted timely through MTO will be considered a valid election for the tax year specified for the payment. All payments for flow-through entity tax are required to be submitted through Michigan Treasury Online (MTO). ![]()
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