The Michigan Business Tax (MBT) will be administered by the Department of Treasury (Department) under the provisions of the Revenue Act. [MCL 208.1513] The Revenue Act penalty and interest provision will apply. Specifically these penalty provisions apply for failure to file, filing late and failure to pay. The penalty is equal to 5% per month up to a 25% maximum. Interest is applied at the rate of 1% over Michigan prime for non payment, insufficient payment or late payment of tax due on an estimated return or an annual return.

However, the MBT also includes administrative provisions which may require a taxpayer to file informational returns and it also mandates that the Department to promulgate rules. The following is a summary of the relevant provisions in the MBT requiring informational returns and promulgating administrative rules.

Informational Returns

At the request of the Department, a taxpayer required by the internal revenue code to file or submit an information return of income paid to others must, to the extent the information is applicable to residents of Michigan, at the same time file or submit the information in the form and content prescribed to the Department of Treasury. [MCL 208.1509(1)]

At the request of the Department, a voluntary association, joint venture, partnership, estate, or trust must file a copy of any tax return or portion of any tax return that was filed under the provisions of the internal revenue code. The Department may prescribe alternate forms of the returns. [MCL 208.1509(2)]

Administrative Rules

The MBTA mandates that the Department must promulgate rules to implement the MBT. The rules must be promulgated pursuant to the administrative procedures act. [MCL 208.1513(2)]

The MBTA gives the Department of Treasury authority to prescribe forms for use by taxpayers and may promulgate rules in conformity with the MBTA for the maintenance by taxpayers of records, books, and accounts, and for the computation of the tax, the manner and time of changing or electing accounting methods and of exercising the various options contained in this act, the making of returns, and the ascertainment, assessment, and collection of the tax imposed by the MBTA. [MCL 208.1513(3)]