The Ups and Downs of Your Tax Bill:
The State of Michigan passed legislation in 2004 that requires the County Treasurers, over the course of three years starting with the tax year 2005, to shift the County operating millage from being collected on the winter tax bill to being collected entirely on the summer tax bill. In 2005 one-third of the county's tax portion was billed in the summer and two-thirds was billed in the winter. This year, two-thirds of the county portion is on the summer tax bill and one-third will be billed on the winter tax bill. In 2007, the shift of the county portion from the winter tax bill to the summer tax bill will be complete and the 2007 summer tax bill will reflect the entire County operating tax portion.
Section 179 Deduction for Equipment Purchases:
Internal Revenue Code Section 179 allows a taxpayer to expense up to $102,000 (adjusted or inflation) of qualifying property placed in service during the tax year. After 2007, the annual limit will be reduced to $25,000. The $102,000 limit is reduced dollar-for-dollar (but not below zero) to the extent the taxpayer purchases more than $410,000 of qualifying property (adjusted for inflation).
The Section 179 deduction applies to passenger vehicles with a gross vehicle weight of 6,000 pounds or more (full-size pickups and large SUVs). However, the Section 179 deduction is limited to $25,000 for vehicles under 14,000 pounds. Vehicles under 6,000 lbs (passenger cars, small pickups, small-medium SUVs) are not eligible for the section 179 deduction.
Penalties |
Federal failure to pay (payroll) |
2%-32% of outstanding balance, based on length of delinquency, plus 0.5% per month until balance is paid, plus interest. |
Federal failure to pay (income tax) |
0.5% per month until balance is paid, plus interest. |
Federal payroll improper payment |
10% of outstanding balance, plus interest. |
Federal failure to file (payroll and income tax) |
5% per month of unpaid balance up to 25%, plus interest. |
Michigan underpayment (sales, use, withholding and income/SBT) |
5% per month up to 25%, plus interest. |
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Tax return due dates |
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Original due date |
Maximum extended due date |
Individual tax return (1040) |
April 15th |
October 15th |
Corporation tax return (1120, 1120S) |
March 15th |
September 15th |
Partnership/LLC tax return (1065) |
April 15th |
October 15th |
Payroll reporting due dates |
|
Frequency |
Due date |
W-2 and 1099 |
Annual |
January 31st (employee)
February 28th (SSA) |
Federal unemployment tax return (Form 940) |
Annual |
January 31st |
Federal withholding and payroll tax (Form 941) |
Quarterly |
30th or 31st day of month following quarter end |
State unemployment tax (Form 1020/1017) |
Quarterly |
25th day of month following quarter end |
Michigan sales, use and withholding tax (Form 160/165) |
Monthly (annual liability greater than $3,600) |
20th of each month following month/quarter end. |
| Quarterly (annual liability $750-$3,600) |
Year-end form due February 28th |
| Annual (annual liability less than $750) |
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Payroll tax and withholding remittance due dates |
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Frequency |
Due date |
Federal unemployment tax |
Quarterly |
30th of 31st day of month following quarter end |
Federal withholding and payroll tax (Form 941) |
Every payroll (annual liability greater than $50,000)
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Within 3 business days of every payroll. |
| Monthly (annual liability $2,500-$50,000) |
15th day of each month following month end. |
| Quarterly (annual liability less than $2,500) |
30th or 31st of each month following quarter end (with Form 941) |
State unemployment tax |
Quarterly |
25th day of month following quarter end (with Form 1020/1017) |
Michigan sales, use and withholding |
Monthly (annual liability greater than $3,600) |
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| Quarterly (annual liability $750-$3,600) |
20th of each month following month/quarter end (with Form 160) |
| Annual (annual liability less than $750) |
February 28th (with Form 165) |
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