4582: Penalty and Interest Computation for Underpaid Estimated Tax (2024)
Michigan · Michigan Treasury · Used for tax years 2024
Michigan Form 4582 computes penalty and interest for underpaid, late-filed, or late-paid quarterly Michigan Business Tax estimates for 2024. It also includes an annualization worksheet to determine and report estimates due when income is not evenly distributed throughout the tax
Who files this form
Form 4582 computes penalty and interest for underpaid, late-filed, or late-paid Michigan Business Tax (MBT) quarterly estimates. Part 4 also calculates and reports estimates when income is not evenly distributed through the tax year.
You may choose not to file this form. If you do, Michigan Treasury will calculate any applicable penalty and interest and bill you.
Estimated returns and payments are generally required if you expect annual MBT liability, including the Corporate Income Tax adjustment, to exceed $800. The text lists exceptions to penalty and interest, including:
- Current annual tax of $800 or less.
- A taxable period shorter than four calendar months.
- Quarterly payments that reasonably approximate each quarter’s liability and total at least 85% of annual liability.
- Four timely, equal payments totaling the preceding year’s annual MBT tax, subject to the stated prior-year requirements, including a $20,000 ceiling.
Special filing and payment rules also apply to farmers, fishermen, and seafarers.
When it's due
For the 2024 tax year, calendar-year estimated returns and payments are due to Michigan Treasury by:
- April 15, 2024.
- July 15, 2024.
- October 15, 2024.
- January 15, 2025.
For fiscal-year filers, quarterly due dates are the 15th day of the 4th, 7th, 10th, and 13th months after the fiscal year begins. If an estimated payment period is shorter than three months, its return is due on the 15th day of the month immediately after that period ends.
The text does not give a separate filing deadline for Form 4582. It says to include the completed form as part of the tax return filing.
What you'll need
Have these forms and records available:
- Your applicable MBT annual return: Form 4567, Form 4588, or Form 4590. Form 4582 uses the name, account number, and annual tax from that return.
- Records of estimated payments, including amounts and payment dates.
- The amount of any prior-year overpayment credited to current-year estimates.
- Form 4574, line 23, or Form 4596, line 5, if you have refundable credits.
- Your preceding year’s return if you are relying on the prior-year tax exception.
If you use Part 4, gather year-to-date gross receipts, business income, additions, subtractions, apportionment, credits, deductions, and applicable tax adjustments for each period. Filers using Form 4588 or Form 4590 must submit a schedule showing their quarterly computations.
If a late filing includes less than full payment, multiple penalty and interest calculations may be needed. Attach a separate schedule if necessary.
How to file
Include completed Form 4582 as part of your tax return filing. Enter the total penalty and interest from line 38 on the applicable annual return:
- Form 4567, line 68.
- Form 4588, line 56.
- Form 4590, line 41.
The supplied text does not give a mailing address or e-filing instructions for Form 4582.
For estimated payments, the text allows quarterly payment by check with Form 4913, or monthly or quarterly payment electronically by Electronic Funds Transfer (EFT). Form 4913 is not required when payments are made by EFT.
Common mistakes
- Completing rows across instead of columns: Complete lines 5 through 13 one column at a time.
- Using blocked boxes or the wrong date format: Do not enter data in boxes filled with Xs. Use MM-DD-YYYY for dates.
- Using an extended annual return deadline for interest: An approved extension does not change the annual return due date used in Part 2, column D.
- Combining annual-return charges with estimated-tax charges: Penalty and interest for late filing or late payment of the annual return are calculated separately.
- Entering the wrong loss carryforward: The MBT business loss carryforward is not the federal net operating loss or CIT business loss carryforward. A CIT loss carryforward cannot be entered on line 53 or applied against the MBT tax base.
- Missing the annualization check: The total of line 70, columns A through D, must equal 85% of current-year tax liability on page 1, line 1.
Questions people ask
Can Treasury calculate the penalty and interest for me?
Yes. If you prefer not to file Form 4582, Treasury will calculate any applicable penalty and interest and bill you.
What if my income varies during the year?
Standard taxpayers may use the Part 4 Annualization Worksheet to calculate and report estimates when income is not evenly distributed. Form 4588 and Form 4590 filers submit a schedule of quarterly computations, enter totals on line 64, and follow lines 65 through 70.
Can I use last year’s tax to avoid penalty and interest?
The prior-year exception requires four timely, equal estimated payments totaling the preceding year’s annual MBT tax, which must be $20,000 or less. Short-year amounts must be annualized. You must have had Michigan business activity in that prior year and filed a return establishing its tax liability. This exception is not available if the business did not exist in the preceding year.
What if I made no estimated payments?
If no exception applies, calculate interest in Part 2 and the penalty for non-filing in Part 3.