Tax Center

Tax Center: Here you'll find useful information and materials to help you understand more about tax and compliance issues. It's also a great area to download various forms so you can complete that information easily and efficiently and save time.

On-line Tax Returns and Organizers

Click on the link below to go to your SECURE on-line tax return/organizer log-in

https://secure.netlinksolution.com/mytaxportal/index.jsp?firmID=13162

Tax Tips for Business Owners

Here you�ll find some up-to-date tips on dealing with your business tax requirements.

Tax Tips for Individuals

Be sure you know what is required of you when filing your tax returns. Don�t miss out on legitimate deductions that you could be entitled to.

Federal Taxes

Stay abreast of tax law changes that may affect you by checking this section regularly.

Standard Mileage Rates Increased for Rest of 2008 (July 11, 2008): To reflect the recent increase in gas prices, the IRS raised the standard mileage rates for the last six months of the year. The rate will increase to 58.5 cents per mile for business miles driven from 7/1/08 through 12/31/08, an eight cent per mile increase from the rate in effect for the first six months of 2008 [see Rev. Proc. 2007-70 (2007-50 IRB 1162) ]. The rate for computing deductible medical or moving expenses will also increase by eight cents per mile to 27 cents per mile, up from 19 cents per mile for the first six months of 2008. The rate for providing services for a charity is set by statute, and remains at 14 cents per mile.

IRS Describes New Tax Scams (July 11, 2008): The IRS warned taxpayers to be on the lookout for a new wave of tax scams. In fact, taxpayers have reported about 1,600 phishing incidents to the IRS so far this year, with almost 700 reported in May and June alone. There are several variations of the tried-and-true refund scam. In a related scam, the recipient is eligible for an economic stimulus payment but to obtain it must click a link to complete and submit a fake online form. Other recent scams include the substitute Form 1040 scam (need to supply requested information), the company report scam (need to review IRS report on company), and the Tax Court scam (download case involving the recipient). Those receiving suspect phone calls or emails should contact the IRS at phishing@irs.gov mailbox.

Michigan Business Tax

Tax Effect of the New Michigan Business Tax on Businesses Organized as S-corporations

On January 1, 2008 the Michigan Business Tax (MBT) became effective for all companies doing business in Michigan with gross receipts of more than $350,000. The MBT is comprised of three taxes, (1) a 4.95% business income tax (BIT), (2) a 0.80% modified gross receipts tax (GRT) and a 21.99% MBT �surcharge.� The MBT surcharge was added via amendment in December 2007 and is calculated by multiplying the 21.99% surcharge rate times the sum of the BIT and GRT to arrive at the total MBT liability.

Since its enactment on July 12, 2007, the MBT has been amended twenty times, ten amendments in 2008 alone, and more are expected. However, if not addressed, current MBT legislation imposes an additional burden on companies operating as S-corporations that will likely cause a significant increase in your 2008 MBT liability. One manner of offsetting the impact of the MBT on S-corporations is to pay out most or all of the business�s income as bonuses to shareholders. Although paying bonuses will result in 2.90% of additional Federal payroll taxes (employee and employer portion of Medicare taxes), it has no Federal or State tax effect to individual shareholders, avoids the 4.95% MBT business income tax, reduces the 21.99% MBT surcharge and increases the compensation credit against the MBT liability.

We will continue to monitor MBT legislative developments and its effect on your business throughout the remainder of the year. We will also keep you abreast of any significant changes in the MBT and any further tax planning opportunities that may arise. In the meantime, please do not hesitate to contact us with any questions regarding this issue.

Michigan Corporation Information Update Online Filing Instructions

Each year Corporations are required to file an annual report with the State of Michigan. In prior years we have been able to prepare the required forms on our system and provide them to you to file. However, due to changes by the State of Michigan, you are now required to either file the original form you receive from the state or file electronically on the state's web site.

The following are instructions on how to file your Michigan Corporation Information Update Report online:

1. Go to the Michigan Department of Energy, Labor and Economic Growth web site at http://www.michigan.gov/dleg and from the left side of the page click on the heading for "Commercial Services and Corporations" and select "online services."

2. From the "online services" page, select the FILEOnline (filing of annual reports/statements) link.

3. Select the "File Your Annual Report or Annual Statements" link in the middle of the page.

4. A page will open and you will need to input the company's six-digit, (numeric or alpha-numeric) Entity ID Number, then select "Go" (to look up your business's Entity ID Number, click the link for "Business Entity Search").

5. The next page will show the annual reports that have been filed and those that need to be filed. If there is more than one year shown with a balance due you will need to file for each year starting with the oldest report outstanding. Select the year you would like to file from the year column.

6. The next page will allow you to update the registered agent name and address OR check a box indicating that there are no changes to the report. Once updates are made (if any), click the next button.

7. Now complete the preparer information, check box certifying the report, then click the next button to go to the payments screen.

8. You will need to enter your payment information on this screen. When payment is confirmed, a detailed receipt will appear. Print a copy for your records.

9. If you do not wish to file electronically and did not receive a pre-printed Corporation Information Update form from the State of Michgian, you may contact the State of Michigan and request a pre-printed form at (517) 241-6470.

10. Please call our office at 517-789-8900 with questions or if any assistance is needed.

Record Retention Guide

Click on the image to view the record retention guide.