4590: Annual Return for Financial Institutions (2024)
Michigan · Michigan Treasury · Used for tax years 2024
Michigan Form 4590 is the 2024 Michigan Business Tax annual return for financial institutions. It calculates tax liability and reports credits, payments, tax due, and any overpayment to be refunded or credited forward. It can also be used to amend a return.
Who files this form
Form 4590 is for financial institutions to calculate Michigan Business Tax (MBT) liability and claim credits.
Only taxpayers with a certificated credit that has been awarded but not fully claimed or used may elect to be MBT taxpayers. Filing an MBT return and claiming a certificated credit commits the taxpayer to MBT until that credit and any carryforward are exhausted.
The financial institution definition includes specified banks, bank holding companies, thrift institutions, certain savings and loan holding companies, and federally chartered Farm Credit System institutions. It can also include non-insurance entities owned directly or indirectly by these institutions that belong to the same unitary business group (UBG).
All financial institution members of a UBG must file a combined Form 4590. The designated member generally must be the controlling member. If the controlling member does not have nexus with Michigan, it may appoint a group member that does.
When it's due
For tax year 2024, the form states that the return is due April 30 or on or before the last day of the fourth month after the close of the tax year.
What you'll need
Have your FEIN or Michigan Treasury TR number, six-digit NAICS code, Michigan and total gross business figures, and payment and credit information available.
For the net capital calculation, gather records for the current tax year and four most recent MBT tax years, including equity capital, goodwill, and average daily book values of Michigan and U.S. obligations. Attach supporting schedules for equity capital.
Federal attachments listed in the instructions:
- Corporations: U.S. Form 1120, pages 1 through 4; Schedule D; and Forms 851, 4562, and 4797. If part of a consolidated federal return, attach a pro forma or consolidated schedule.
- S corporations: U.S. Form 1120-S, pages 1 through 4; Schedule D; and Forms 851, 4562, 4797, and 8825. Do not send K-1 copies unless Treasury requests them.
- Fiduciaries: U.S. Form 1041, pages 1 through 2; Schedule D; and Form 4797.
- LLCs: Attach the appropriate schedules above based on the federal return filed.
Michigan forms:
- Complete Form 4975 for the Corporate Income Tax comparison.
- UBGs must complete and include Form 4752.
- As applicable, use Form 4568 for nonrefundable credits, Form 4574 for refundable credits, Form 4587 for credit recapture, and Form 4582 for underpaid estimated tax penalty and interest.
For an amended return, include a separate explanation of the changes, an amended federal return or a signed and dated IRS audit document, and all schedules filed with the original return.
How to file
Complete both pages and sign and date the return. A UBG must complete Form 4752 before Form 4590, and an individual authorized to sign for the designated member must sign the return.
Mail without payment to:
Michigan Department of Treasury
PO Box 30783
Lansing MI 48909
Mail with payment to:
Michigan Department of Treasury
PO Box 30113
Lansing MI 48909
Pay the amount on line 43. Make the check payable to State of Michigan. Write the taxpayer's FEIN or TR number, the tax year, and MBT on the front of the check. Do not staple the check to the return.
E-file: The instructions state that an FEIN is required to submit taxes through e-file. They do not provide further e-file submission steps.
Common mistakes
- Missing account number: Register before filing if you do not have an FEIN or TR number. Returns without a registered account number will not be processed until one is provided. Use the same account number on all forms.
- Missing signatures or preparer details: Sign and date the return. Tax preparers must provide a PTIN, FEIN, or SSN, plus their business name, address, and phone number.
- Starting a UBG return before its schedule: Complete Form 4752 before Form 4590.
- Including the original return with an amendment: Do not attach a copy of the originally filed return. Include all original schedules, even those you are not changing.
- Trying to revoke the MBT election by amendment: A valid election to claim a certificated credit cannot be revoked this way.
- Leaving an overpayment unallocated: Elect a refund and/or designate an amount to carry forward. Complete lines 45 and 46 as applicable.
Questions people ask
How is the net capital average calculated?
Generally, divide line 19 by five. If the taxpayer has existed for fewer than five years, divide by the number of years it has existed. For a UBG, use the number of years the group has existed if fewer than five.
How do I amend a return?
Use Form 4590 for the year being amended and check the amended-return box. Enter the corrected figures, explain the changes on a separate sheet, and include the required federal documentation and all schedules from the original return.
Can I receive a refund or carry an overpayment forward?
Yes. Designate the amount to carry forward on line 45 and the amount to refund on line 46. You may split the overpayment between these options.
Why is there a Corporate Income Tax adjustment?
The instructions require a comparison of MBT liability with hypothetical Corporate Income Tax liability using Form 4975. If the hypothetical CIT liability is higher, add the difference to MBT liability on line 31.