4586: Schedule of Business Activity Protected Under Public Law 86-272 (2025)
Michigan · Michigan Treasury · Used for tax years 2025
Michigan Form 4586 is a Michigan Business Tax schedule for reporting business activities protected under Public Law 86-272 and certifying that protection. It lists protected activities and collects information about the business’s presence in Michigan. The protection applies only
Who files this form
Form 4586 is the 2025 Michigan Business Tax schedule for reporting business activities and certifying protection under Public Law 86-272.
The form addresses out-of-state businesses conducting activities in Michigan. It explains that PL 86-272 generally protects income from sales of tangible personal property when the business's only Michigan activity is soliciting orders and the conditions for protection are met. This protection applies only to the Business Income Tax, not the Modified Gross Receipts Tax.
What you'll need
The form asks for the following information, rather than listing supporting documents to attach:
- Taxpayer name and Federal Employer Identification Number (FEIN) or TR Number.
- The protected activities your business conducted in Michigan during the tax year.
- Whether employees, representatives or independent contractors worked in Michigan.
- The tax type and tax year of the most recent Michigan return filed, if you check item 16 for prior returns.
- The location of a Michigan regional office, if you check item 17.
The certification also requires you to review the list of Unprotected Activities in the instructions. Those instructions were not included in the supplied text.
Common mistakes
- Treating protection as covering both taxes. PL 86-272 does not protect against the Modified Gross Receipts Tax. All gross receipts apportioned or allocated to Michigan remain subject to that tax calculation.
- Assuming protection carries over automatically. Protection must be evaluated for each tax year.
- Overlooking unprotected activity during the year. The form warns that if a business conducts unprotected activities at any time during a tax year, none of its Michigan-attributable income for that year is protected.
- Certifying without reviewing unprotected activities. Item 18 requires review of the Unprotected Activities list in the instructions and certification that the business does not conduct those activities.
- Assuming certification guarantees protection. Treasury may review the business's Michigan activities and determine that it is not protected.
Questions people ask
Does PL 86-272 mean my business has no Michigan nexus?
No. The form states that PL 86-272 does not prevent Michigan from finding that an out-of-state business has nexus. It limits income-based taxation of protected activities.
Which activities should I check in Part 1?
Check all listed protected activities that apply to your business in the current tax year. Examples include soliciting orders through advertising, carrying free samples for display or distribution, and passing orders, inquiries and complaints to the home office.
Are independent contractors treated the same as employees?
Not entirely. The form notes that sales activities by independent contractors receive additional protection under PL 86-272 that is not afforded to employees or representatives.
What does checking item 18 certify?
You certify that you reviewed the listed items and, to the best of your knowledge, your business activity is protected. You also certify that you reviewed the Unprotected Activities list in the instructions and that your business does not conduct those activities. Treasury may reach a different conclusion after further review.