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An extension of time to file the federal return automatically extends the time to file the Michigan return to the new federal due date. Composite filers must submit Form 4 even if a federal extension was filed. An extension of time to file is not an extension of time to pay.
A Michigan S-corporation is a standard corporation that has elected for the special S-corp tax status with the IRS. The election is done by filing Form 2553 with the Internal Revenue Service.
All businesses pay the CIT on their taxable income if they have a \u201csubstantial nexus\u201d in the state. This means the business has a physical presence or collects at least $350,000 in gross receipts in Michigan.
Michigan's Corporate Income Tax (CIT) is at a flat rate of 6%. The tax applies to C Corporations and any entity that elects to be taxed as a C corporation. Income is apportioned based 100% on the sales factor.
At times it may happen that the taxpayer is aggrieved by an order of the Assessing Officer. In such a case he can file an appeal against the order of the Assessing Officer before the Commissioner Of Income-Tax (Appeals) {CIT(A)}.
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All taxpayers other than financial institutions and insurance companies (described here as standard taxpayers) with nexus and apportioned or allocated gross receipts equal to $350,000 or more and whose CIT tax liability is greater than $100 must file a CIT Annual Return (Form 4891).
Michigan recognizes the federal S election, and Michigan S corporations are not required to pay corporate income tax to the state. However, an individual S corporation shareholder will owe tax on his or her share of the company's income.
Step 1: Check-in with your state tax authority Some states including Wisconsin, Alabama and California offer automatic extensions to file your state income tax return without having to file any additional forms. Other states, such as New York, will grant you a extension but you must request it.
If federal extension is accepted, the Department will grant an automatic extension to the last day of the 8th month following the return due date. The taxpayer will need to provide the Department with a copy of the federal extension request and pay tax liability in full by the due date to avoid penalty & interest.
Michigan Corporate Income Tax (CIT) The CIT imposes a 6% corporate income tax on C corporations and taxpayers taxed as corporations federally. The CIT has one credit, the small business alternative credit, which offers an alternate tax rate of 1.8% of adjusted business income.

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