5324: City of Detroit Corporate Income Tax Penalty and Interest Computation for Underpaid Estimated Tax (2024)
Michigan · Michigan Treasury · Used for tax years 2024
Form 5324 calculates penalty and interest for underpaid, late, or missed quarterly estimated payments of 2024 City of Detroit Corporate Income Tax. It shows required estimated payments, quarterly underpayments, and the total penalty and interest to carry to Form 5297.
Who files this form
Form 5324 is used to calculate penalty and interest for underpaid, late, or missed quarterly estimated City of Detroit corporate income tax payments for tax year 2024.
You may choose not to file this form. If you do, the Michigan Department of Treasury will calculate any applicable penalty and interest and bill you.
If your tax liability on line 1 is less than $250, no estimated payments are required.
When it's due
For tax year 2024, the instructions list these quarterly payment due dates for calendar-year filers:
- April 15
- June 15
- September 15
- January 15
These are quarterly payment dates, not a separately stated filing deadline for Form 5324.
What you'll need
Have these forms and records ready:
- Your taxpayer name and Federal Employer Identification Number (FEIN).
- Your 2024 and 2023 Forms 5297, specifically the total tax liability on line 39 of each return.
- Records of any prior-year overpayment credited to your current-year estimated tax.
- Records of estimated payments, including amounts and payment dates.
- The quarterly return due dates and annual return due date used in the calculation.
If you made a late partial payment, you may need multiple penalty and interest calculations for a quarter. Attach a separate schedule if necessary.
How to file
The supplied text does not give a mailing address or e-file instructions for Form 5324.
Complete the three calculation parts: estimated tax required, interest, and penalty. Add the interest from line 28 and penalty from line 36 on line 37, then carry that total to Form 5297, line 48. The form directs taxpayers who are amending to see the instructions.
For quarterly estimated payments, the instructions allow payment by check with the City of Detroit Corporate Income Tax Quarterly Return, Form 5300. This is a payment option, not a mailing instruction for Form 5324.
Common mistakes
- Working across columns too soon. The form cautions you to complete lines 7 through 15 one column at a time.
- 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.
- Stopping late-payment charges too early. The instructions say penalty and interest apply until a late quarterly payment is received.
- Using only one calculation for a late partial payment. If less than full payment is made with a late filing, multiple penalty and interest calculations are needed for each affected column. Attach a separate schedule if necessary.
- Assuming one interest rate applies throughout. Interest is calculated separately for each quarter, and the rate may differ.
Questions people ask
Can I let Treasury calculate the penalty and interest?
Yes. If you prefer not to file Form 5324, Treasury will calculate any applicable penalty and interest and bill you.
Are estimated payments required if my tax liability is less than $250?
No. The instructions say no estimated payments are required if the tax liability on line 1 is less than $250.
How is the required estimated tax calculated?
Use the smaller of your 2024 and 2023 total tax liabilities from Form 5297, line 39. Multiply that amount by 70%. Divide the result by four, or by the number of quarterly returns required if the business operated for less than 12 months.
Does an approved extension change the interest calculation deadline?
No. An approved extension does not change the annual return due date used in Part 2, column D.
How is the penalty calculated?
For each quarter, Part 3 uses the underpayment from line 14 and counts the months, including fractional months, from the payment due date to the annual return due date or payment date, whichever is earlier. The printed penalty rate is 1% per month.