How does a taxpayer with a fiscal year end calculate tax under the MBT for estimate purposes?
The following answer has been rescinded and replaced by A25. If estimated tax liability for the year is over $800.00, a taxpayer must file estimated quarterly returns and payments. Quarterly returns for fiscal year taxpayers are due the 15th day of the first month after each quarter. Any quarter less than 3 months is due on the 15th day of the month immediately following the final month of the taxpayer’s tax year. In the case of a short taxable year, no estimated tax payment is required if the short taxable year is a period of less than four full calendar months; or the estimated tax liability for the year is $800.00 or less. See IRS Reg. 1.6655-5(b). The estimated payment made with each quarterly return must be for the total estimated business income tax base and modified gross receipts tax base for the quarter, or 25% of the estimated annual liability. To avoid penalty and interest charges, estimated payments must equal at least 85 percent of the liability for the tax year, and the a
