4899: Penalty and Interest Computation for Underpaid Estimated Tax* (2025)
Michigan · Michigan Treasury · Used for tax years 2025
Michigan Form 4899 calculates penalty and interest on underpaid estimated Corporate Income Tax for 2025. It includes an annualization worksheet for tax liability that is not evenly distributed throughout the tax year.
Who files this form
Form 4899 is used to calculate penalty and interest for underpaid Michigan Corporate Income Tax estimated payments for tax year 2025. It uses the total tax liability from Form 4891, line 43; Form 4905, line 47; or Form 4908, line 24.
The form does not state a separate filing threshold or a complete rule for who must file it.
What you'll need
Have these forms and payment details available to complete Form 4899:
- Your taxpayer name and Federal Employer Identification Number (FEIN).
- Your total tax liability from Form 4891, line 43; Form 4905, line 47; or Form 4908, line 24.
- Details of prior-year overpayments and estimated tax payments.
- Quarterly payment due dates, actual payment dates, and the annual return due date.
If completing the annualization worksheet, you also need income, additions, subtractions, loss carryforwards, credits, and credit recapture amounts for the first 3, 6, and 9 months and the full 12 months. The worksheet also uses the apportionment percentage from Form 4891, line 9g, and apportioned income from non-unitary flow-through entities.
Common mistakes
- Working across columns too soon: The form cautions you to complete lines 5 through 13 one column at a time.
- Not checking the annualization totals: The quarterly amounts on line 59 must total the amount on page 1, line 2.
- Skipping the annualization worksheet when it applies: The form says to complete it if your liability is not evenly distributed throughout the tax year.
Questions people ask
How is the required estimated tax amount calculated?
Line 2 is 85% of the total tax liability on line 1. For line 4, divide that amount by four or by the number of quarterly returns required. If annualizing, use the amount from line 59 of the annualization worksheet instead.
When should I complete the annualization worksheet?
Complete it if your tax liability is not evenly distributed throughout the tax year. The form directs filers of Forms 4905, 4906, 4908, or 4909 to see the instructions, which are not included in the supplied text.
How is the penalty calculated?
Part 3 uses the underpayment from line 12 and counts days from the payment due date to the annual return due date or the actual payment date, whichever is earlier. The penalty is 5% for 1 through 60 days, 10% for 61 through 90 days, 15% for 91 through 120 days, 20% for 121 through 150 days, and 25% for more than 150 days.
Where do I report the total penalty and interest?
Add interest from line 26 and penalty from line 37 on line 38. Enter that total on Form 4891, line 51; Form 4905, line 56; or Form 4908, line 32. If amending, the form directs you to the instructions, which are not included in the supplied text.