MI HB5022

Changes the election deadline for flow-through entities to pay corporate income tax from the fifteenth day of the third month of the tax year to the last day of the ninth month after the end of the tax year for tax years beginning on or after January 1, 2024.

Modifies the deadline for reporting member allocations and tax information from the fifteenth day of the third month after the end of the tax year to the date for filing the annual return under section 833 (including extensions) for tax years beginning on or after January 1, 2024.

Provides relief from interest and penalties on quarterly estimated tax payments made prior to the entity's election to pay the tax for that tax year, unless the department determines the deficiency is due to intentional disregard of the law.

Allows taxpayers to avoid interest and penalties for tax years beginning on or after January 1, 2024 if they submit 4 equal quarterly installments equaling at least 90% of current year tax liability or 100% of prior year tax liability.

Effective date: April 2, 2025.