SENATE BILL No. 654

September 15, 2011, Introduced by Senator BRANDENBURG and referred to the Committee on Finance.

A bill to amend 1967 PA 281, entitled

"Income tax act of 1967,"

by amending section 685 (MCL 206.685), as added by 2011 PA 38.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 685. (1) An annual or final return shall be filed with

the department in the form and content prescribed by the department

by the last day of the fourth month after the end of the taxpayer's

tax year. Any final liability shall be remitted ~~with this return.~~

by the annual due date of the taxpayer's annual or final return,

excluding any extension of time to file the return as provided

under subsections (2) and (3). A taxpayer, other than a taxpayer

subject to the tax imposed under chapter 12 or 13, whose

apportioned or allocated gross receipts are less than $350,000.00

does not need to file a return or pay the tax imposed under this

part. The apportioned or allocated gross receipts of a flow-through

entity shall be imputed to each of its members based upon the same

percentage that each member's proportionate share of distributive

income is to the total distributive income of the flow-through

entity. A taxpayer whose tax liability under this part is less than

or equal to $100.00 does not need to file a return or pay the tax

imposed under this part.

(2) If a taxpayer has apportioned or allocated gross receipts

for a tax year of less than 12 months, the threshold amount of

$350,000.00 in subsection (1) shall be multiplied by a fraction,

the numerator of which is the number of months in the tax year and

the denominator of which is 12.

(3) ~~(2)~~ The department, upon application of the taxpayer and

for good cause shown, may extend the date for filing the annual

return. Interest at the rate under section 23(2) of 1941 PA 122,

MCL 205.23, shall be added to the amount of the tax unpaid for the

period of the extension. The state treasurer shall require with the

application payment of the estimated tax liability unpaid for the

tax period covered by the extension.

(4) ~~(3)~~ If a taxpayer is granted an extension of time within

which to file the federal income tax return for any tax year, the

filing of a copy of the request for extension together with a

tentative return and payment of an estimated tax with the

department by the due date provided in subsection (1) shall

automatically extend the due date for the filing of an annual or

final return under this part until the last day of the eighth month

following the original due date of the return. Interest at the rate