The Single Business Tax (SBT) is almost gone and the Michigan Business Tax (MBT) is almost here. The first concern of taxpayer's and practitioners is filing estimated returns and payments. The following is a summary of the estimated return filing requirements and payment requirements. Please note the filing requirement and due dates have changed from the SBT. Also note, the last year's tax safe haven does not apply to 2008 payments.

A taxpayer that reasonably expects liability for the tax year to exceed $800.00 must file an estimated return and pay an estimated tax for each quarter of the tax year. [MCL 208.1501(1)]

For taxpayers on a calendar year basis, the quarterly returns and estimated payments must be made on or before April 15, July 15, October 15, and January 15. Taxpayers not on a calendar year basis must file quarterly returns and make estimated payments on the appropriate due date which in the taxpayer's fiscal year corresponds to the calendar year. [MCL 208.1501(3)]

The estimated payment made with each quarterly return of each tax year shall be for the estimated business income tax base and modified gross receipts tax base for the quarter or 25% of the estimated annual liability. The second, third, and fourth estimated payments in each tax year must include adjustments, if necessary, to correct underpayments or overpayments from previous quarterly payments in the tax year to a revised estimate of the annual tax liability. [MCL 208.1501(3)]

The MBTA provides limited safe-harbor provisions whereby certain taxpayers in specified situations can avoid the assessment of interest for underpayment of estimated. The interest due on underpayments of estimated tax will not be assessed:

• (a) If the sum of the estimated payments equals at least 85% of the liability and the amount of each estimated payment reasonably approximates the tax liability incurred during the quarter for which the estimated payment was made. [MCL 208.1501(4)(a)]
• (b) For the 2009 tax year and each subsequent tax year, if the preceding year's tax liability was $20,000.00 or less and if the taxpayer submitted 4 equal installments the sum of which equals the immediately preceding tax year's tax liability. [MCL 208.1501(4)(b)]

Each estimated return must be filed on a form prescribed by the Department of Treasury and must include an estimate of the annual tax liability and other information required by the state treasurer.   [MCL 208.1501(5)]

For a taxpayer filing an estimated tax return for the first tax year of less than 12 months, the amounts paid with each return must be proportional to the number of payments made in the first tax year.   [MCL 208.1501(6)]

Estimated payments made will be a credit against the annual tax return. The Department of Treasury has the authority in the law to require filing of the returns and payment of the tax for other than quarterly or annual periods. Such authority is invoked if the Department of Treasury considers it necessary to insure payment of the tax or to provide a more efficient administration of the tax. [MCL 208.1501(8)]