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Blank Michigan 807 PDF Form

The Michigan 807 form is a Composite Individual Income Tax Return used by partnerships, S corporations, and other flow-through entities operating in Michigan. This form allows these entities to report income and tax obligations on behalf of their nonresident members. To ensure compliance and avoid penalties, it is essential to complete this form accurately and on time.

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Article Guide

The Michigan 807 form is an important document for partnerships, S corporations, and other flow-through entities operating in Michigan. This form serves as the Composite Individual Income Tax Return, which must be filed annually. It is due on April 15 of the following year, and failure to file can lead to penalties and interest. The form requires basic information such as the name of the entity, its Federal Employer Identification Number, and its mailing address. Along with the main form, several attachments are needed, including copies of the U.S. 1065 or 1120S forms, a Michigan Schedule of Apportionment, and detailed lists of participants and nonparticipants. The form also includes sections for reporting ordinary income, additions, subtractions, and the calculation of taxable income. Participants in the composite return must meet certain criteria, and the entity must withhold taxes for nonresident members. Overall, the Michigan 807 form facilitates compliance with state tax regulations for entities with multiple nonresident partners or shareholders.

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Michigan Department of Treasury 807 (Rev. 1-05)

2004 MICHIGAN

Composite Individual Income Tax Return

This return is due April 15, 2005. Type or print clearly in blue or black ink.

This form is issued under authority of P.A. 281 of 1967, as amended. Failure to file may result in the assessment of penalty and interest and could result in the revocation of filing agreement.

1. Name of Partnership, S Corporation or Other Flow-Through Entity	2. Federal Employer Identification or TR Number

3. Mailing Address (Street, P.O. Box or Rural Route No.)

4. City, Village or Township	State	ZIP Code

NOTE: Pages 1, 2 and 3 of the U.S. 1065 or 1120S, the MI-1040H, a list of participants and a list of nonparticipants must be attached to this return. See instructions.

5.	Ordinary income (loss) from line 22 of U.S. 1065 or line 21 of U.S. 1120S			5.	.00
6.	Additions (from line 35, page 2)			6.	.00
7.	Subtotal. Add lines 5 and 6		7.		.00
8.	Subtractions (from line 38, page 2)			8.	.00
9.	Total income subject to apportionment. Subtract line 8 from line 7		9.		.00
10.	Apportionment percentage from MI-1040H. (Caution! See instructions.)			10.	%
11.	Total Michigan apportioned income. Multiply line 9 by the percentage on line 10		11.		.00
12.	Michigan allocated income or (loss) (from line 43, page 2)			12.	.00
13.	Total Michigan income. Add lines 11 and 12		13.		.00
14.	Enter Michigan income that is attributable to Michigan residents			14.	.00
15.	Enter Michigan income that is attributable to nonparticipating nonresidents			15.	.00
16.	Enter Michigan income that is attributable to participants		16.		.00
17.	Exemption allowance (from line 49, page 2)	17.	.00
18.	SEP, SIMPLE or qualified plan deductions (from line 52, page 2)	18.	.00
18.		18.	19.		.00
19.	Add lines 17 and 18		19.		.00
20.	Taxable income. Subtract line 19 from line 16		20.		.00
21.	Tax due. Multiply line 20 by 3.95% (.0395)		21.		.00
22.	Michigan extension payments and credit forward			22.	.00
23.	Withholding tax payments			23.	.00

24.If line 22 plus line 23 is less than line 21, enter TAX DUE.

	Include interest	and penalty	, if applicable		PAY 24.	.00
	Include interest	and penalty	, if applicable		PAY 24.	.00
25.	If line 22 plus line 23 is more than line 21, enter overpayment			25.		.00
26.	Amount of line 25 to be credited to your 2005 estimated tax		26.	.00
27.	Subtract line 26 from line 25			REFUND 27.		.00
27.	Subtract line 26 from line 25			REFUND 27.

CERTIFICATION

I declare under penalty of perjury that the information in this return and attachments is true and				I declare under penalty of perjury that this return is based on all
complete to the best of my knowledge. I have obtained the required Power of Attorney from each
				information of which I have any knowledge.
of the members of this composite return and my firm will resolve the issue of any tax liability.				information of which I have any knowledge.


				Preparer's Name, Address, PTIN and/or FEIN
Filer's Signature		Date		Preparer's Name, Address, PTIN and/or FEIN
Filer's Signature		Date

I authorize Treasury to discuss my return with my preparer.	Yes		No
I authorize Treasury to discuss my return with my preparer.	Yes		No

Mailing: Make check payable to "State of Michigan." Write the firm's Federal Employer Identification Number, "Composite

Return" and Tax Year on the check. Mail return with payment (if applicable) to: Composite Return, Michigan Department of Treasury, P.O. Box 30058, Lansing, MI 48909.

www.michigan.gov/treasury

Continued on Page 2

2004 807, Page 2

Name of Partnership, S Corporation or Other Flow Through Entity	Federal Employer Identification or TR Number

	ADDITIONS (see instructions)
28.	Net income (loss) from rental real estate activities	28.
29.	Net income (loss) from other rental activities	29.
30.	Portfolio Income (loss) (see instructions):
	a. Interest income	30a.
	b. Dividend income	30b.
	c. Royalty income	30c.
	d. Net short-term capital gain (loss) (from U.S. Schedule K)	30d.
	e. Net long-term capital gain (loss) (from U.S. Schedule K)	30e.
	f. Other portfolio income	30f.
31.	Net gain (loss) under Section 1231	31.
32.	Other income from U.S. Schedule K	32.
33.	State or local taxes measured by income	33.
34.	Other miscellaneous additions (attach schedule)	34.
35.	Total additions. Add lines 28 through 34. Enter here and on line 6	35.
	SUBTRACTIONS (see instructions)
36.	Income (loss) from other partnerships, S corp. and fiduciaries included in ordinary income	36.
37.	Other miscellaneous subtractions (attach schedule)	37.
38.	Total subtractions. Add lines 36 and 37. Enter here and on line 8	38.
	MICHIGAN ALLOCATED INCOME OR (LOSS)
39.	Guaranteed payments to participants for services performed in Michigan	39.
40.	Income attributable to other Michigan partnerships, S corporations or fiduciaries	40.
41.	Net Michigan capital gains (losses) (from U.S. Schedule D)	41.
42.	Other Michigan allocated income (loss) (see instructions)	42.
43.	Total Michigan allocated income (loss).
	Add lines 39 through 42. Enter here and on line 12	43.
	EXEMPTION ALLOWANCE
44.	Number of participants included in this agreement	44.
45.	Line 44 times $3,100 exemption allowance	45.
46.	Total Michigan income from line 13	46.
47.	Total distributive income (Total Distributive Income from Distributive Income Worksheet)	47.
48.	Percent of income attributable to Michigan. Divide line 46 by line 47.
	(May not exceed 100%.)	48.
49.	Apportioned exemption allowance. Multiply line 45 by the percentage on line 48
	Enter here and on line 17	49.
	SEP, SIMPLE OR QUALIFIED PLAN SUBTRACTIONS
50.	SEP, SIMPLE or qualified plan subtractions for participants (attach schedule)	50.
51.	Enter the percent of income attributable to Michigan from line 48	51.
52.	SEP, SIMPLE or qualified plan subtractions attributable to Michigan
	Multiply line 50 by the percentage on line 51. Enter here and on line 18	52.

.00

2004 807, PAGE 3

Instructions for Form 807, Michigan Composite Individual Income Tax Return

GENERAL INSTRUCTIONS

Who may file a return

Aflow-through entity, defined as partnerships, S corporations, limited partnerships, limited liability companies, or limited liability partnerships, that does business in Michigan and has two or more nonresident partners, shareholders or members (participants). The entity (firm) and participants must agree to comply with the Michigan Department of Treasury (Treasury) rules described below.

Participation Requirements

A member may not participate in this composite return in any of the following cases:

•If he or she is claiming a city income tax credit, public contribution credit, community foundation credit, homeless shelter/food bank credit, college tuition credit or Michigan Historic Preservation Tax Credit.

•If he or she was a Michigan resident (full-year or part-year).

•If he or she wishes to claim more than one Michigan exemption.

Due date of return

The composite return for any tax periods ending in 2004 is due April 15, 2005. The returns for any periods ending in 2005 will be due April 15, 2006.

If the firm cannot file by the due date, a request for an extension can be filed before the original due date. See “Requesting an Extension” on this page.

Withholding tax payments

Composite filers are required to make withholding tax payments on behalf of

all nonresident members (both participating and nonparticipating). The payment of withholding is due quarterly on April 20, July 20, and October 20 of the taxable year and January 20 of the succeeding year. The payment of withholding taxes is remitted on the payment voucher Form 160, Combined Return for Michigan Taxes.

Requesting an extension

The firm may request an extension of time to file by sending payment of the estimated annual liability to Treasury with a copy of an approved federal extension. Any extension allowed by the

Internal Revenue Service for filing the firm’s federal return automatically extends the due date of the composite return to the same extended due date.

If the firm does not apply for a federal extension, request an Application for Extension of Time to File Michigan Tax Returns (Form 4). When completing the extension form, check “Fiduciary Tax” in box 1, use the firm’s name and federal employer identification number (FEIN) and write “composite return” on the form. Follow these special instructions to make sure your account is credited properly.

Payment of the estimated annual liability

must be made with the extension application. When you file your composite return, attach a copy of your extension application to it. Obtain Form MI-1041ES

from www.michigan.gov/treasury, Fiduciary Forms. Download a copy of the quarterly forms and complete one quarterly form. Use the name of the firm and the firm’s FEIN or the recipients Social Security number (SSN). Check the box labeled “CF” at the top of the voucher. Do not use the other three quarterly estimate forms.

Mailing refunds, assessments and correspondence

By signing the Michigan Composite Income Tax Return (Form 807), the signing partner or officer declares that the firm has power of attorney from each participant to file a composite return on his or her behalf. Treasury will mail refund

checks, assessments and all correspondence to the firm at the address indicated on the return. The firm must agree to be responsible for the payment of any additional tax, interest and penalties as finally determined. Issues involving the tax liability reported on a composite return will be resolved with the firm. In unusual circumstances, the department may contact the participants.

Attachments

Attach the following items to the composite return:

•A copy of pages 1, 2 and 3 of the U.S. 1065 or U.S. 1120S .

•A Michigan Schedule of Apportion- ment (Form MI-1040H).

•All required forms MI-NR-K1 for each member of the composite return.

•Two schedules (one for participants and one for nonparticipants) listing each partner’s, shareholder’s or member's name, address, SSN and respective share of Michigan income and/or loss. If the participating member is another flow-through entity, the schedule must include the entity’s name, address, FEIN, and share of Michigan-sourced income, as well as a list of the names, addresses, SSNs and ownership percentages of that entity’s nonresident partners or shareholders.

•A statement signed by an authorized officer or general partner certifying that each participant has been informed of the terms and conditions of this program.

LINE-BY-LINE INSTRUCTIONS

Lines not listed are explained on the form.

Line 10: Enter the apportionment percentage from Form MI-1040H. DO NOT

use the Single Business Tax apportionment percentage from Form C-8000H. The MI-1040H apportionment percentage is NOT weighted and the property factors are based on property owned or rented and USED in Michigan. See MI-1040H instructions for income tax nexus standards.

Line 13: The amount on this line should equal the total of lines 14, 15 and 16.

Line 21: Multiply the amount on line 20 by 3.95 percent (.0395).

Line 23: Enter the amount of withholding tax payments made on behalf of participating members.

Flow-Through Entities. Flow-through entities are required to withhold Michigan income tax on the taxable income available for distribution to nonresident members.

The amount of withholding is calculated and remitted on a quarterly basis by multiplying the share of taxable income allocable to each member, adjusted for the allowable exemption amount for a quarter, times the income tax rate (4.0 percent through June 30, 2004 and 3.9 percent beginning July 1, 2004).

Aflow-through entity is also required to withhold Michigan income tax when one or more of the entity’s members is a

2004 807, PAGE 4

nonresident flow-through entity. The flow-through entity in Michigan shall withhold Michigan income tax from any such nonresident flow-through entity on behalf of all of the nonresident members.

Line 24: If line 22 plus line 23 is less than line 21, enter the balance of the tax due. This is the tax owed with the return. Enter any applicable penalties and interest in the spaces provided. Add tax, penalty and interest together and enter the total on this line. If balance due is less than $1, no payment is required. Make checks payable to “State of Michigan.” Write the firm’s FEIN, “Composite Return,” and the tax year on the front of the check. To ensure accurate processing of your return, send one check for each return type.

Line 27: Refund. Subtract line 26 from line 25. This is the refund. Treasury will not refund amounts less than $1.

Mail your completed return with payment (if applicable) to:

Composite Return

Michigan Department of Treasury

P.O. Box 30058

Lansing, MI 48909

Additions

Distributive Income Worksheet

Column A refers to Distributive Income categories from Schedule(s) K. Column B and C refer to lines on the U.S. 1065 Schedule K and U.S. 1120S Schedule K. Column D is the list of amounts that are added to arrive at total distributive income that is reported on Form 807, line 47.

A	B	C	D
A	U.S. 1065	U.S. 1120S	Distributive Income
Distributive Income Categories	U.S. 1065	U.S. 1120S	Distributive Income
Distributive Income Categories	Schedule K	Schedule K	Amounts
	Schedule K	Schedule K	Amounts
Ordinary income (loss) from trade or business	1	1
activity	1	1
activity
Net income (loss) from rental real estate	2	2
activity	2	2
activity
Net income (loss) from other rental activity	3c	3c

Portfolio income (loss):
Interest income	5	4

Dividend income	6a and 6b	5a and 5b

Royalty income	7	6

Net short-term capital gain (loss)	8	7

Net long-term capital gain (loss)	9a	8a

Guaranteed payments	4

Net gain (loss) under section 1231	10	9

Other income (loss)	11	10

TOTAL DISTRIBUTIVE INCOME
Add all amounts in Column D and carry total to Form 807, line 47.

Lines 28 through 32: Enter income from lines 2, 3c, 4, 5a, 5b, 6, 7, 8a, 9 and 10 of 1120S Schedule K and from lines 2, 3c, 5, 6a, 6b, 7, 8, 9a, 10 and 11 of U.S. 1065 Schedule K. Guaranteed payments, income attributable to other Michigan fiduciaries or flow-through entities should be allocated to Michigan on lines 39 through 42. See instructions below.

Line 33: Enter the amount of state and local income taxes that was used to determine ordinary income on line 22 of the U.S. 1065 or line 21 of the U.S. 1120S.

Line 34: Enter other additions to income, such as gross interest and dividends from obligations or securities of states and their political subdivisions other than Michigan.

Subtractions

Note: Charitable contributions and other amounts reported as itemized deductions on U.S. SCHEDULE A are not allowable subtractions in determining Michigan taxable income.

Line 36: Enter income (loss) from other fiduciaries or other flow-through entities that is included in ordinary income. Losses must be added back to ordinary

income. Attach a schedule showing the location of companies and amount of income attributable to each.

Line 37: Enter amounts such as interest from U.S. obligations that are included in line 30a, and other deductions for AGI (above the line) that were not included in determining ordinary income. This includes section 179 depreciation and amounts included on line 12[d][2] of U.S. 1120S Schedule K and on line 13[d][2] of U.S. 1065 Schedule K. Attach a schedule of all subtractions.

Michigan allocated income or loss

Line 39: Enter the portion of guaranteed payments attributable to services performed in Michigan by the nonresident participants.

Line 40: Enter income from other fiduciaries or other flow-through entities attributable to Michigan that have not been reported on another composite return. Attach a schedule showing the amount of income attributable to each.

Line 41: Enter gains/losses from the sale of real or personal property located in Michigan not subject to apportionment.

Line 42: Enter any other income (loss) allocated to Michigan. Include any Michigan net operating loss deduction (NOLD). Partnerships may include the Section 179 expenses on property located in Michigan as a deduction here. Attach schedules.

Exemption Allowance

Line 47: Enter the total distributive income as determined using the worksheet on this page.

Line 48: Compute the percentage of income attributable to Michigan by dividing total Michigan income (line 46) by the total distributive income (line 47). This figure may not exceed 100 percent.

SEP, SIMPLE or qualified plan subtractions

SEP - Simplified Employee Pensions

SIMPLE - Savings Incentive Match Plan for Employees

Line 50: Figure the portion of SEP, SIMPLE or qualified plan subtractions which is attributable to the participants. Attach a schedule showing calculations.

➤ PDF File

Form Specifications

Fact Name	Fact Details
Form Title	Michigan Composite Individual Income Tax Return (Form 807)
Governing Law	This form is issued under the authority of P.A. 281 of 1967, as amended.
Filing Deadline	The return is due on April 15, 2005, for tax periods ending in 2004.
Who Can File	Flow-through entities such as partnerships, S corporations, and limited liability companies with two or more nonresident participants may file.
Required Attachments	Pages 1, 2, and 3 of the U.S. 1065 or 1120S, MI-1040H, and participant/nonparticipant lists must be attached.
Penalties for Non-filing	Failure to file may lead to penalties, interest, and potential revocation of the filing agreement.
Tax Calculation	Tax due is calculated by multiplying taxable income by 3.95%.
Mailing Instructions	Returns should be mailed to the Michigan Department of Treasury, P.O. Box 30058, Lansing, MI 48909, with checks made payable to "State of Michigan."

Michigan 807: Usage Guidelines

Filling out the Michigan 807 form requires careful attention to detail. Once completed, the form needs to be submitted along with necessary attachments by the due date. This ensures compliance with state tax regulations and helps avoid potential penalties.

Obtain the Form: Download the Michigan 807 form from the Michigan Department of Treasury website or acquire a physical copy.
Fill in Basic Information: Write the name of the partnership, S corporation, or other flow-through entity in the designated space.
Enter Federal Identification Number: Input the Federal Employer Identification Number (EIN) or TR Number accurately.
Provide Mailing Address: Clearly print the mailing address, including street, city, state, and ZIP code.
Attach Required Documents: Ensure that pages 1, 2, and 3 of the U.S. 1065 or 1120S, the MI-1040H, and lists of participants and nonparticipants are attached.
Report Ordinary Income: Enter the ordinary income or loss from the specified line of the U.S. 1065 or 1120S.
Calculate Additions: Include any additions as instructed, and sum them up to complete the subtotal.
Calculate Subtractions: Input any applicable subtractions and calculate the total income subject to apportionment.
Determine Apportionment Percentage: Input the apportionment percentage from the MI-1040H form.
Calculate Total Michigan Apportioned Income: Multiply the total income subject to apportionment by the apportionment percentage.
Report Allocated Income or Loss: Enter the Michigan allocated income or loss as required.
Complete Tax Calculations: Subtract any exemptions and deductions to arrive at the taxable income.
Calculate Tax Due: Multiply the taxable income by the tax rate of 3.95% to find the total tax due.
Account for Payments: Include any Michigan extension payments and withholding tax payments made on behalf of members.
Determine Overpayment or Tax Due: If applicable, calculate any overpayment or amount due.
Certification: Sign and date the form, certifying the accuracy of the information provided.
Mail the Form: Send the completed form and any payment to the Michigan Department of Treasury at the specified address.

Your Questions, Answered

What is the Michigan 807 form?

The Michigan 807 form, officially known as the Composite Individual Income Tax Return, is used by flow-through entities such as partnerships and S corporations that do business in Michigan. It allows these entities to report income on behalf of their nonresident partners or shareholders, simplifying the tax filing process for those individuals.

Who is eligible to file the Michigan 807 form?

Eligibility to file the Michigan 807 form requires that the entity is a flow-through entity with two or more nonresident partners, shareholders, or members. This includes partnerships, S corporations, limited partnerships, limited liability companies, and limited liability partnerships. All participants must agree to comply with the filing requirements outlined by the Michigan Department of Treasury.

When is the Michigan 807 form due?

The Michigan 807 form is due on April 15 of the year following the tax year being reported. For example, for tax periods ending in 2004, the due date was April 15, 2005. If the entity cannot file by this date, an extension can be requested.

What documents must accompany the Michigan 807 form?

When submitting the Michigan 807 form, several attachments are required. These include a copy of pages 1, 2, and 3 of the U.S. 1065 or U.S. 1120S, a Michigan Schedule of Apportionment (Form MI-1040H), and forms MI-NR-K1 for each member of the composite return. Additionally, schedules listing the names, addresses, and respective shares of Michigan income for each partner or shareholder must be included.

How is the tax calculated on the Michigan 807 form?

Tax on the Michigan 807 form is calculated by first determining the taxable income. This is done by subtracting allowable exemptions and deductions from the total income. The resulting taxable income is then multiplied by the tax rate of 3.95%. If there are any withholding payments made on behalf of the nonresident members, these can be deducted from the total tax due.

What happens if the form is not filed on time?

Failure to file the Michigan 807 form by the due date may result in penalties and interest being assessed. In some cases, it could also lead to the revocation of the filing agreement between the entity and the Michigan Department of Treasury, which could complicate future filings.

Can an extension be requested for filing the Michigan 807 form?

Yes, an extension can be requested. This is typically done by submitting payment of the estimated annual liability along with a copy of an approved federal extension. If no federal extension is applied for, a specific application for a Michigan extension must be submitted.

How are refunds processed for the Michigan 807 form?

Refunds are processed by the Michigan Department of Treasury and are mailed to the address indicated on the Michigan 807 form. The signing partner or officer certifies that they have the power of attorney from each participant, and any refunds will be sent to the firm responsible for the filing.

What are the participation requirements for members?

Members may not participate in the composite return if they are claiming certain credits, were Michigan residents at any time during the tax year, or wish to claim more than one Michigan exemption. It’s important for all participants to understand these requirements before agreeing to file a composite return.

Common mistakes

Incomplete Information: Many individuals fail to provide complete details in the required fields. For instance, missing the Name of Partnership or the Federal Employer Identification Number can lead to processing delays. Always ensure that every section is filled out accurately.
Incorrect Apportionment Percentage: Entering the wrong percentage on line 10 can have significant consequences. It is crucial to derive this figure from the correct form, specifically the MI-1040H, rather than using other business tax forms. Miscalculating this can affect the entire tax return.
Neglecting Required Attachments: Failing to attach necessary documents is a common oversight. The form requires specific pages from the U.S. 1065 or 1120S, along with a list of participants and nonparticipants. Without these attachments, the return may be deemed incomplete.
Misunderstanding Exemption Allowances: Participants often miscalculate the exemption allowance. This can happen when individuals do not accurately multiply the number of participants by the exemption amount. It is essential to carefully follow the instructions to avoid errors that could lead to an incorrect tax liability.

Documents used along the form

The Michigan 807 form, known as the Composite Individual Income Tax Return, is essential for flow-through entities like partnerships and S corporations that operate in Michigan. To ensure accurate filing and compliance, several other forms and documents are often submitted alongside the Michigan 807 form. Below is a list of these commonly used documents, each described briefly.

U.S. Form 1065 or 1120S: These forms report the income, deductions, gains, and losses of partnerships (1065) or S corporations (1120S). Pages 1, 2, and 3 of these forms must be attached to the Michigan 807 return to provide a comprehensive overview of the entity's financial activities.
Michigan Schedule of Apportionment (Form MI-1040H): This form is used to calculate the apportionment percentage of income that is subject to Michigan tax. It is critical for determining how much income is allocated to Michigan, which influences the tax liability reported on the Michigan 807 form.
Forms MI-NR-K1: These forms are required for each member of the composite return. They report the individual share of income, deductions, and credits for nonresident participants, ensuring that each member's tax responsibilities are accurately reflected.
Participant and Nonparticipant Schedules: These schedules list the names, addresses, and respective shares of income or loss for each partner, shareholder, or member. They help clarify the distribution of income and ensure compliance with Michigan tax laws.

Filing the Michigan 807 form along with the necessary supporting documents helps facilitate a smoother tax process. It is advisable to ensure that all required forms are completed accurately and submitted on time to avoid penalties or interest. Understanding these additional documents can aid in achieving compliance and minimizing tax-related issues.

Similar forms

The Michigan 807 form, which is the Composite Individual Income Tax Return, shares similarities with several other tax-related documents. Each of these forms serves a specific purpose in reporting income, deductions, and tax liabilities. Below are six documents that are similar to the Michigan 807 form, along with explanations of how they are alike.

U.S. Form 1065: This is the U.S. Return of Partnership Income. Like the Michigan 807, it is used by partnerships to report income, deductions, and other tax-related information. Both forms require details about income from various sources and how it is allocated among partners.
U.S. Form 1120S: This form is the U.S. Income Tax Return for an S Corporation. Similar to the Michigan 807, it allows S corporations to report their income, deductions, and credits. Both forms require information about the entity's income and how it is distributed to shareholders.
Michigan Form MI-1040H: This is the Michigan Homestead Property Tax Credit Claim. While it serves a different purpose, it also involves reporting income and deductions for tax purposes in Michigan, similar to the income calculations found in the Michigan 807 form.
U.S. Schedule K-1: This document reports income, deductions, and credits from partnerships or S corporations to their partners or shareholders. Like the Michigan 807, it details how income is shared among participants, ensuring transparency in reporting income.
Michigan Form MI-NR-K1: This is the Nonresident Schedule for Michigan tax purposes. It is similar to the Michigan 807 in that it provides a breakdown of income and deductions specifically for nonresident members of a partnership or S corporation, helping to clarify tax obligations.
Form 160: This is the Combined Return for Michigan Taxes. While it is used for various tax types, it shares the requirement of reporting income and tax liabilities for entities doing business in Michigan, similar to the Michigan 807's focus on composite returns for partnerships and S corporations.

Dos and Don'ts

When filling out the Michigan 807 form, attention to detail is crucial. Here are seven important dos and don’ts to ensure your submission is accurate and timely.

Do type or print clearly in blue or black ink to avoid any confusion during processing.
Do attach all required documents, including copies of U.S. 1065 or 1120S pages, MI-1040H, and participant lists.
Do ensure that the apportionment percentage is taken from the MI-1040H form, not from the Single Business Tax apportionment.
Do double-check that all lines are filled out completely before submitting the form.
Don't forget to sign the form. An unsigned form may be considered invalid.
Don't use the wrong mailing address. Send your completed return to the Michigan Department of Treasury at the specified P.O. Box.
Don't submit the form late. The due date is April 15, 2005, for the 2004 tax year. Request an extension if necessary.

By following these guidelines, you can help ensure that your Michigan 807 form is processed smoothly and efficiently. Take the time to review your submission carefully, as mistakes can lead to penalties or delays. Stay informed and compliant to avoid any issues down the road.

Misconceptions

Here are some common misconceptions about the Michigan 807 form, along with clarifications to help you understand its purpose and requirements:

Misconception 1: The Michigan 807 form is only for Michigan residents.

This form is actually designed for flow-through entities like partnerships and S corporations that have nonresident members. It allows these entities to file taxes on behalf of their nonresident participants.

Misconception 2: Filing the 807 form is optional for partnerships.

Filing is mandatory if the partnership has nonresident members. Failure to file can lead to penalties and interest.

Misconception 3: All partners must participate in the composite return.

Not all partners can participate. Those claiming certain credits or who were Michigan residents cannot be included in the composite return.

Misconception 4: The 807 form is due on April 15 of the current year.

The due date for the 807 form is April 15 of the year following the tax period. For example, for tax year 2004, the due date was April 15, 2005.

Misconception 5: You don’t need to attach any additional documents when filing the 807 form.

You must attach several documents, including pages from the U.S. 1065 or 1120S and a Michigan Schedule of Apportionment, among others.

Misconception 6: The apportionment percentage is the same as the Single Business Tax apportionment percentage.

This is incorrect. The apportionment percentage used on the 807 form must come from the MI-1040H and is not weighted.

Misconception 7: There are no penalties for late filing of the 807 form.

Late filing can result in penalties and interest, so it’s important to file on time or request an extension.

Misconception 8: You can claim any exemption amount you want.

Exemptions are limited to specific amounts and conditions. For instance, there is a set exemption allowance based on the number of participants.

Misconception 9: You can submit the 807 form electronically without any issues.

While electronic submission may be available, it’s essential to check the Michigan Department of Treasury's guidelines to ensure compliance.

Misconception 10: The 807 form is only for businesses with a physical presence in Michigan.

Even if a business operates outside Michigan, it may still need to file the 807 form if it has nonresident partners earning income sourced from Michigan.

Key takeaways

Filling out and using the Michigan 807 form requires careful attention to detail. Below are key takeaways to consider:

Eligibility: The form is intended for flow-through entities, such as partnerships and S corporations, with two or more nonresident partners or members.
Filing Deadline: The Michigan 807 form is due on April 15 of the year following the tax year, which for 2004 was April 15, 2005.
Required Attachments: Pages 1, 2, and 3 of the U.S. 1065 or 1120S, along with a Michigan Schedule of Apportionment and lists of participants and nonparticipants, must accompany the return.
Income Reporting: Ordinary income or loss from the U.S. 1065 or 1120S must be reported on the form.
Apportionment Percentage: The apportionment percentage from Form MI-1040H must be accurately entered to determine the Michigan apportioned income.
Tax Calculation: Tax due is calculated by multiplying the taxable income by 3.95%.
Withholding Requirements: The entity must make quarterly withholding tax payments for all nonresident members, which are due on specific dates throughout the year.
Extensions: If additional time is needed, a request for an extension must be submitted along with payment of the estimated tax liability.
Refund Process: Any overpayment must be clearly indicated on the form to ensure proper processing of refunds.
Certification: The signing partner or officer must certify the accuracy of the information provided and have the necessary power of attorney from each participant.