Michigan Business Tax (MBT) Penalty Amnesty

On April 2, 2009, Gov. Granholm authorized an amnesty from penalties for a business that underpays MBT quarterly estimated tax payments by 25 percent or less during its first filing year.

For additional questions or assistance, please contact Bethanie Pollock at bpollock@gabridgeco.com.

MBT Surcharge & the Small Business Credit TrapThe MBT surcharge is getting the attention of large taxpayers and Michigan Congressmen. However, many small taxpayers are finding themselves subject to the current 21.99% surcharge calculated on MBT liability. Insurance companies and taxpayers that are eligible for the Small Business Credit are excluded from the surcharge. Many taxpayers that are expecting a Small Business Credit may be disqualified due to officers' compensation or distributive share business income. In addition, these "small businesses" are no longer exempt from the MBT surcharge. The House is currently reviewing a bill that will reduce the surcharge in 2009.

Please contact Jessica Dean at jdean@gabridgeco.com for additional information.