4899: Penalty and Interest Computation for Underpaid Estimated Tax* (2024)
Michigan · Michigan Treasury · Used for tax years 2024
Michigan Form 4899 calculates penalty and interest for underpaid, late, or missing 2024 Corporate Income Tax quarterly estimates. It also includes an annualization worksheet to determine and report estimated payments due when income is not evenly distributed throughout the tax ye
Who files this form
Form 4899 computes penalty and interest for underpaid, late, or missing Michigan Corporate Income Tax (CIT) quarterly estimates. Filing this form is optional: if you do not file it, Treasury will compute any applicable penalty and interest and bill you.
Estimated returns and payments are generally required if you reasonably expect annual CIT liability of more than $800. They are not required if:
- The taxable period is less than four calendar months.
- The annual tax on the current annual return is $800 or less.
Penalty and interest are not due if quarterly estimated payments reasonably approximate each quarter’s tax liability and total at least 85% of annual liability. Complete Part 4 if liability is not evenly distributed throughout the year.
A prior-year payment exception also applies when estimated payments equal the preceding year’s CIT tax, paid at least at the pace of four timely equal payments, and that prior-year tax is $20,000 or less. A short prior year must be annualized for both purposes. You must have had Michigan business activity and filed a return for that prior year. This exception is unavailable if the business did not exist in the preceding year.
When it's due
For the 2024 tax year, calendar-year estimated returns and payments are due:
- April 15, 2024
- July 15, 2024
- October 15, 2024
- January 15, 2025
For fiscal-year filers using the 2024 form, payments are due on the 15th day of the 4th, 7th, 10th, and 13th months after the fiscal year starts.
If an estimated payment period is shorter than three months, its quarterly return is due on the 15th day of the month immediately following the period’s final month.
Include completed Form 4899 with the tax return. The text does not give a separate filing date for Form 4899.
What you'll need
Have these forms and records available:
- Your applicable CIT annual return: Form 4891, Form 4905, or Form 4908. Form 4899 uses the taxpayer information and total tax liability from that return.
- Records of estimated payments, including amounts and payment dates.
- The amount of any prior-year overpayment credited to current-year estimates.
- Your preceding year’s CIT return if relying on the prior-year payment exception.
If using Part 4, have the income, additions, subtractions, apportionment, loss carryforward, and credit information needed for the worksheet. Line 52 uses Form 4902, line 16.
Form 4905 or Form 4908 filers using annualization must submit a schedule showing their computations for each quarter. A separate schedule may also be needed for multiple penalty and interest calculations when a late filing includes less than full payment.
How to file
Include completed Form 4899 as part of your tax return filing. Enter the total penalty and interest from line 38 on Form 4891, line 50; Form 4905, line 55; or Form 4908, line 31.
The text does not provide a mailing address or a separate e-file method for Form 4899.
For quarterly estimated payments, the instructions list these options:
- Fast Pay on Michigan Treasury Online at mto.treasury.michigan.gov.
- A check with the Corporate Income Tax Quarterly Return, Form 4913.
- Electronic funds transfer (EFT).
Form 4913 is not required when payments are made through MTO or by EFT. EFT information is available at www.michigan.gov/taxes/business-taxes/biz.
Common mistakes
- Completing rows instead of columns: Complete lines 5 through 13 one column at a time.
- Entering information in blocked boxes: Do not enter data in boxes filled with Xs.
- Using the wrong date format: Enter dates as MM-DD-YYYY.
- Leaving off the second-page FEIN: Repeat the taxpayer’s FEIN on page 2.
- Using an extended annual-return date for interest: An approved extension does not change the annual-return due date used in Part 2, column D.
- Missing the annualization check: The totals on line 59 must equal line 2, which is 85% of current-year tax liability.
- Combining annual-return late charges with this calculation: Penalty and interest for late filing or late payment of the annual return are computed separately.
Questions people ask
Can Treasury calculate the penalty and interest for me?
Yes. If you prefer not to file Form 4899, Treasury will compute any applicable penalty and interest and bill you.
What if my income is not evenly distributed throughout the year?
Use Part 4 to determine and report estimated amounts due. If filing Form 4905 or Form 4908, submit a schedule of quarterly computations, enter the totals on line 53, and follow lines 54 through 59.
What if I made no estimated payments?
If none of the listed exceptions apply, compute interest in Part 2 and the penalty for non-filing in Part 3.
Is the interest rate the same for every quarter?
Not necessarily. Calculate interest separately for each quarter. Rates are adjusted every six months. Updated rates are posted at michigan.gov/treasury under “Reports & Legal,” then “Revenue Administrative Bulletins,” in the bulletin titled “Interest Rate.”