Michigan State And Local Tax: Recent Comments

Comment on Governor Signs the Refund Anticipation Loan Disclosure Act and the Refund Anticipation Loan Act

2010-03-18T04:28:38Z

Hi,

Thanks for the post. Keep the great work.

Comment on Michigan NOT In Compliance with the Streamlined Sales Tax Agreement - Letter of Substantial Compliance Sent to the Streamlined Sales Tax Governing Board

2010-03-10T04:21:43Z

Thanks for great info...

Comment on Michigan Supreme Court Rejects Treasury Appeal In Alliance Single Business Tax Case

2010-02-18T19:37:23Z

The cases that are pending in the Court of Claims would need to be resolved with refunds because the taxpayer was required to pay the tax before filing an appeal in the Court of Claims. However, for those cases pending in the Michigan Tax Tribunal or in Informal Conferance, only the agreed portion was required to be paid. In those cases the desired outcome would be the cancellation of the assessment.

Comment on Michigan Supreme Court Rejects Treasury Appeal In Alliance Single Business Tax Case

2010-02-16T19:22:35Z

Regardless of whether you agree with the outcome (or reasoning) of this case, the real question in my mind is whether clients will ever see a refund?

Comment on Does IFT Personal Property Qualify for the Personal Property Tax Exemptions and Michigan Business Tax Credit?

2010-02-12T11:32:41Z

Only those who bought into the boom ten to 15 years ago can really benefit from the price rises, Daniel said. In the current market, however, “people are locked in to paying back a massive debt for their entire lives”.

Comment on Michigan Department of Treasury Issues E-File requirements

2010-02-10T19:14:58Z

Thanks for looking. I couldn't find one either, and wasn't sure if I was missing it.

Comment on Michigan Department of Treasury Issues E-File requirements

2010-02-10T18:38:43Z

Greg,

I could not find a penalty for filing a manual return instead of electronically filing the return. The problem may be one of processing.

Ed

Comment on Does IFT Personal Property Qualify for the Personal Property Tax Exemptions and Michigan Business Tax Credit?

2010-02-07T14:14:20Z

There is so much competition in the real estate market. The company that advertises the most usually gets most of the business. I just see it around me so much. I see real estate agents that have billboards and post cards get alot business that i see from past experience. If you spend on money on marketing you will get it back in sales.

Comment on Michigan Department of Treasury Issues E-File requirements

2010-02-05T18:50:11Z

What is the penalty for electing to manually file the returns instead of electronically filing the returns?
Thanks.

Comment on DRAFT of Michigan Business Tax Proposed Rule Issued for Comment: Order of Credits

2010-01-26T16:16:23Z

Michael,

I am sorry to disappoint you. There is a conflict between the law and Treasury's instructions for Form 4569 Single Business Tax (SBT) Credit Carryforwards. The instructions for Form 4569, Line 31, instruct the taxpayer to carry the total of SBT credit carryforwards to Form 4568, Line 2 which is before all other credits.

Line 31: Total SBT Credit Carryforwards Used. Standard taxpayers and financial institutions carry this amount to the MBT Nonrefundable Credits Summary (Form 4568), line 2.

The MBT Proposed Draft Rule - Ordering of Credits reads in paragraph (1)(b) "Available Single Business Tax Act carryover credits shall be deducted from liability before any Michigan Business Tax Act credits available under Chapter 4 of the Act."

However, the Michigan Business Tax Act in Section 403(l) states: "Notwithstanding any other provision in this act, the credits provided in this section shall be taken before any other credit under this act."

So what does the tax preparer do? In our office we have not encountered this problem yet. However, our tax preparation software will allow us to override the form in order to take the credits as mandated by the law. We recommend that if you do this, first discuss it with the taxpayer and if the taxpayer agrees to take the credits in the order mandated by the law, attach a schedule explaining it.

I would expect Treasury to make an adjustment and advise the taxpayer accordingly. The taxpayer has the right to appeal at an informal conference.