Michigan Form 165 PDF Details

Michigan Form 165 is a form that taxpayers in the state of Michigan use to report their estimated tax liability. The form must be filed annually, and must be accompanied by the appropriate payment. Taxpayers who do not file or pay their estimated taxes may face penalties and interest. The form is available on the Michigan Department of Treasury website.

This knowledge will aid you to understand better the details of the michigan form 165 before you begin filling it out.

QuestionAnswer
Form NameMichigan Form 165
Form Length6 pages
Fillable?Yes
Fillable fields75
Avg. time to fill out16 min 34 sec
Other namesform 165, mi form 165, michigan gov form 165, michigan form 165 instructions

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Click Here to Use Michigan Treasury Online to File Electronically

Michigan Department of Treasury

5081 (Rev. 04-20), Page 1 of 2

2021 Sales, Use and Withholding Taxes Annual Return

Issued under authority of Public Acts 167 of 1933, 94 of 1937, and 281 of 1967, all as amended.

Reset Form

This form cannot be used as an amended return; see the 2021

Sales, Use and Withholding

Taxes Amended Annual Return (Form 5082).

File this return by February 28, 2022.

Do not use this form to replace a monthly/quarterly return.

Taxpayer’s Business Name

Business Account Number (FEIN or TR Number)

Street Address

City

State

ZIP Code

PART 1: SALES AND USE TAX

1.Total gross sales for tax year being reported...........................................

2.Rentals of tangible property and accommodations .................................

3.Telecommunications services..................................................................

4.Add lines 1, 2 and 3.................................................................................

A. Sales

B. Use: Sales & Rentals

1.

2. XXXXXXX

3. XXXXXXX

4.

5.ALLOWABLE DEDUCTIONS

 

a. Resale, sublease or subrent

5a.

 

b. Industrial processing exemption

5b.

 

c. Agricultural production exemption

5c.

 

d. Interstate commerce

5d.

 

e. Nontaxable services billed separately

5e.

 

f. Bad debts

5f.

 

g. Food for human/home consumption

5g.

 

h. Government exemption

5h.

 

i. Michigan motor fuel tax

5i.

 

j. Direct payment deduction

5j.

 

k. Other exemptions and/or deductions (see instructions)

5k.

 

l. Tax included in gross sales

5l.

 

m. Total allowable deductions. Add lines 5a - 5l

5m.

6.

Taxable balance. Subtract line 5m from line 4

6.

7.

Gross tax due. Multiply line 6 by 6% (0.06)

7.

8.

Tax collected in excess of line 7

8.

9.

Tax due before discount allowed. Add lines 7 and 8

9.

10.

Total discount allowed (see instructions)

10.

A. Sales Tax

B. Use Tax

XXXXXXX

XXXXXXX

+ 0000 2021 68 01 27 4

Continue on page 2.

2021 Form 5081, Page 2 of 2

 

 

 

 

 

Taxpayer’s Business Name

 

Business Account Number

 

 

 

 

 

 

 

 

 

 

 

 

A. Sales Tax

 

B. Use Tax

11.

Total tax due. Subtract line 10 from line 9

 

11.

 

 

 

 

 

12.

.....................Tax payments and credits in current year (after discounts)

12.

 

 

 

 

 

PART 2: USE TAX ON ITEMS PURCHASED FOR BUSINESS OR PERSONAL USE

 

 

 

 

 

 

13.

Purchases for which no tax was paid or inventory purchased or withdrawn for business or personal use....

13.

 

 

14.

.....................................................................Total use tax on purchases due. Multiply Line 13 by 6% (0.06)

 

 

14.

 

 

15.

..........................................................................Use tax paid on purchases and withdrawals in current year

 

 

15.

 

 

PART 3: WITHHOLDING TAX

 

 

 

 

 

 

 

 

 

 

 

 

 

 

16.

Gross Michigan payroll, pension and other taxable compensation

 

 

16.

 

 

17.

Total number of W-2 and 1099 forms

 

17.

 

 

 

 

18.

........................................................................Total Michigan income tax withheld per W-2 and 1099 forms

 

 

18.

 

 

19.

..............................................................Total Michigan income tax withholding paid during current tax year

 

 

19.

 

 

PART 4: SUMMARY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

20.

Total sales, use and withholding tax due. Add lines 11A, 11B, 14 and 18

 

 

20.

 

 

21.

.....................................................Total sales, use and withholding tax paid. Add lines 12A, 12B, 15 and 19

 

 

21.

 

 

22.

...........................................If line 21 is greater than line 20, enter the difference here. If not, skip to line 25

 

 

23.

............................................................................Amount of line 22 to be credited forward to a future period

 

 

23.

 

 

24.

REFUND. Subtract line 23 from line 22

 

 

 

 

24.

 

 

25.

If line 21 is less than 20, enter balance due

 

 

 

 

25.

 

 

26.

.................................................................................Penalty for late filing or late payment (see instructions)

 

 

26.

 

 

27.

Interest for late payment (see instructions)

 

 

 

 

27.

 

 

28.

TOTAL PAYMENT DUE. Add lines 25, 26 and 27

 

 

 

 

28.

 

 

PART 5: SIGNATURE (All information below is required.)

Taxpayer Certification. I declare under penalty of perjury that the information in this

Preparer Certification. I declare under penalty of perjury that this

return and attachments is true and complete to the best of my knowledge.

return is based on all information of which I have any knowledge.

 

 

 

 

 

 

 

 

 

 

 

 

Preparer’s Signature

 

 

 

By checking this box, I authorize Treasury to discuss my return with my preparer.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Signature of Taxpayer or Official Representative (must be Owner, Officer, Member,

Preparer’s Business Address

 

Manager, or Partner)

 

 

 

 

 

 

 

 

 

 

 

Print Taxpayer or Official Representative’s Name

 

Date

 

 

 

 

 

 

 

 

 

Title

Telephone

Number

Preparer’s Identification Number

Preparer’s Telephone Number

 

 

 

 

 

 

 

File and pay this return for free on Michigan Treasury Online at mto.treasury.michigan.gov.

Alternatively, make check payable to “State of Michigan.” Write the account number, “SUW Annual” and tax year on the check. Send the return and payment due to: Michigan Department of Treasury, P.O. Box 30401, Lansing, MI 48909-7901

+ 0000 2021 68 02 27 2

2021 Form 5081, Page 3

Instructions for 2021 Sales, Use and

Withholding Taxes Annual Return (Form 5081)

Form 5081 is available for submission electronically using Michigan Treasury Online (MTO) at mto.treasury.michigan.gov or by using approved tax preparation software. Most taxpayers will have the option to file the Annual EZ form, reducing the amount of fields needed to complete. Go to MTO to see if you qualify.

NOTE: The address field on this form is required to be completed but will not be used to replace an existing valid address for the purpose of correspondence or refunds. Update address and other registration information using MTO at mto.treasury.michigan.gov or mail a Notice of Change or Discontinuance (Form 163).

IMPORTANT: This is a return for sales tax, use tax and/ or withholding tax. If the taxpayer inserts a zero on or leaves blank any line reporting sales tax, use tax or withholding tax, the taxpayer is certifying that no tax is owed for that tax type. Only enter figures for taxes the business is registered and/or liable for. If it is determined that tax is owed the taxpayer will be liable for the deficiency as well as penalty and interest.

PART 1: SALES AND USE TAX

Lines 1 through 3: For information about determining whether a person has nexus with Michigan, see Revenue Administrative Bulletins (RABs) 1999-1, 2015-22, and 2018-

16.Please also visit www.michigan.gov/remotesellers for guidance, including FAQs.

Line 1A: SALES TAX - Total Gross Sales for the Tax

Year: This line should be used by sellers with nexus to report sales of tangible personal property where ownership transfers in Michigan. This includes sellers with nexus through physical presence or economic presence (remote sales).

Enter total sales, including cash, credit and installment transactions, of tangible personal property. Include any costs incurred before ownership of the property is transferred to the buyer, including installation, shipping, handling, and delivery charges. Dealers do not reduce sales reported here by any trade-in value.

Providers of nontaxable services (that do not involve the sale or lease of tangible personal property) should not report those sales.

Line 1B: USE TAX - Total Sales for the Tax Year: This line should be used by:

•Sellers with nexus to report sales of tangible personal property sourced to Michigan, for which ownership transfers outside Michigan, or

•Remote sellers without nexus who voluntarily collect Michigan tax.

Enter total sales, including cash, credit, and installment transactions, of tangible personal property.

Line 2B: USE TAX - Rentals of Tangible Personal Property and Accommodations.

•Lessors of tangible personal property: Lessors that have made a valid election under MCL 205.95(4) and MAC R 205.132(1) should report receipts from rentals of that tangible personal property under the election.

•Persons providing accommodations: This includes but is not limited to total hotel, motel, and vacation home rentals, and assessments imposed under the Convention and Tourism Act, the Convention Facility Development Act, the Regional Tourism Marketing Act, and the Community Convention or Tourism Marketing Act.

Line 3B: USE TAX - Telecommunications Services. Enter gross income from telecommunications services.

Line 5a-5l: Allowable Exemptions and/or Deductions. Use lines 5a - 5l to deduct from gross sales the nontaxable sales included in line 4. Deductions taken for tax exempt sales must be substantiated in business records. A completed copy of Michigan Sales and Use Tax Certificate of Exemption (Form 3372) or the same information in another format must be obtained from the purchaser. For more information on exemption documentation, see Revenue Administrative Bulletin (RAB) 2016-14.

Line 5a: Resale, Sublease or Subrent. Enter resale, sublease or subrent exemption claims.

Line 5b: Industrial Processing Exemption. The sale or lease of tangible personal property ultimately used in industrial processing by an industrial processor is exempt. Industrial processing is the activity of converting or conditioning tangible personal property by changing its form, composition, quality, combination, or character. In general, all of the following must be met:

•Property must be used in producing a product for ultimate sale at retail,

•Property must be sold or leased to an industrial processor, including a person that performs industrial processing on behalf of another industrial processor or performs industrial processing on property that will be incorporated into a product for ultimate sale at retail, and

•Activity starts when property begins moving from raw materials storage to begin industrial processing and ends when finished goods first come to rest in finished goods inventory.

If property is used for both an exempt and a taxable purpose, the property is only exempt to the extent that it is used for an exempt purpose. In such cases, the exemption is limited to the percentage of exempt use to total use determined by a reasonable formula or method approved (but not required to be pre-approved) by Treasury. For exceptions and exclusions, see MCL 205.54t and 205.94o.

Line 5c: Agricultural Production Exemption. Property must be directly or indirectly used in agricultural production. Generally, the following non-exhaustive list may be exempt:

(i) Tangible personal property sold or leased to a person

2021 Form 5081, Page 4

engaged in a business enterprise that uses or consumes the property for either:

•Tilling, planting, draining, caring for, maintaining, or harvesting things of the soil, or

•Breeding, raising, or caring for livestock, poultry, or horticultural products.

(ii)To the extent that the property is affixed to and made a structural part of real estate for others and used for an exempt purpose in (i), tangible personal property sold to a contractor that is one of the following:

•Agricultural land tile

•Subsurface irrigation pipe

•Portable grain bins

•Grain drying equipment and its fuel or energy source However, the following sales from (i) or (ii) are not exempt:

•Food, fuel, clothing, or similar property for personal living or human consumption, or

•Property permanently affixed to and becoming a structural part of real estate unless it is agricultural land tile, subsurface irrigation pipe, a portable grain bin, or grain drying equipment. Certain property that can be disassembled and reassembled may be exempt.

Some specific types of exempt property and exempt uses of property are clarified in the statute. If property is used for both an exempt and a taxable purpose, the property is only exempt to the extent that it is used for an exempt purpose. In such cases, the exemption is limited to the percentage of exempt use to total use determined by a reasonable formula or method approved (but not required to be pre-approved) by Treasury. For more information, see MCL 205.54a and 205.94.

Line 5d: Interstate Commerce. Enter sales made in interstate commerce. To claim such a deduction, the property must be delivered by the business to the out-of-state purchaser. Property transported out-of-state by the purchaser does not qualify as interstate commerce. Documentation of out-of-state shipments must be retained in business records to support this deduction.

Line 5e: Nontaxable Services Billed Separately. Enter charges for nontaxable services billed separately, such as repair or maintenance, if these charges were included in gross receipts on line 1. Costs, such as delivery or installation charges, that are incurred before the completion of the transfer of ownership of taxable property are included in the tax base and may not be subtracted.

Line 5f: Bad Debts. Bad debts may be eligible for a deduction if the following criteria are met:

•The debts are charged off as uncollectible on business books and records at the time the debts become worthless

•The debts are deducted on the return for the period during which the bad debts are written off as uncollectible

•The debts are or would be eligible to be deducted for federal income tax purposes.

A bad debt deduction may be claimed by a third-party lender if the retailer who reported the tax and the lender financing the sale timely execute and maintain a separate written election designating which party may claim the deduction. Certain additional conditions must be met. See MCL 205.54i, 205.99a, and RAB 2019-3.

Line 5g: Food for Human/Home Consumption. Enter the total of retail sales of grocery-type food, excluding tobacco, marihuana products, and alcoholic beverages. Prepared food is subject to tax. See MCL 205.54g and MCL 205.94d for more information.

Line 5h: Government Exemption. Direct sales to the United States government or the state of Michigan or its political subdivisions are exempt.

Line 5i: Michigan Motor Fuel Tax. Motor fuel retailers may deduct the Michigan motor fuel taxes that were included in gross sales on line 1 and paid to the State or the distributor.

Line 5j: Direct Payment Deduction. Enter sales made to purchasers that claimed direct pay exemption from sales and use taxes. With the exemption claim, the purchaser must include the following statement: “Authorized to pay use tax on purchases of tangible personal property directly to the State of Michigan under Account Number [listing either the Federal Employer Identification Number or the Michigan Treasury Registration Number]. If using Michigan Sales and Use Tax Certificate of Exemption (Form 3372), check the box in Section 3 for “Other” and include the above statement as the explanation. MCL 205.98.

Line 5k: Other Exemptions and/or Deductions. Identify exemptions or deductions not covered in items 5a through 5j on this line. Examples of exemptions or deductions are:

•Allowable trade-in values on vehicle sales. Motor vehicle, recreational vehicle, and watercraft dealers may be eligible to deduct the value of a trade-in under MCL 205.51(d). Deduction for motor vehicles is subject to limitation.

Taxes paid to Secretary of State are not reported here. Instead, they are reported on the Vehicle Dealer Supplemental Schedule (Form 5086, e-file only).

•Credit for the core charge attributable to a recycling fee, deposit, or disposal fee for a motor vehicle or recreational vehicle part or battery if the recycling fee, deposit, or disposal fee is separately stated on the invoice, bill of sale, or similar document given to the purchaser.

•Direct sales, not for resale, to certain nonprofit agencies, churches, schools, hospitals, and homes for the care of children and the aged, to the extent the property is used to carry out the nonprofit purpose of the organization. For sales to certain nonprofit agencies, the exemption is limited based on the sales price of property used to raise funds or obtain resources. All sales must be paid for directly from the funds of the exempt organization to qualify.

•Assessments imposed under the Convention and Tourism Act, the Convention Facility Development Act, the

2021 Form 5081, Page 5

Regional Tourism Marketing Act, or the Community Convention or Tourism Marketing Act. Hotels and motels may deduct the assessments included in gross sales and rentals if use tax on the assessments was not charged to the customers.

•Credits allowed to customers for sales tax originally paid on merchandise voluntarily returned, provided the return is made within the time period for returns stated in the taxpayer’s refund policy or 180 days after the initial sale, whichever is earlier. Repossessions are not allowable deductions.

•Sales to contractors of materials which will become part of a finished structure for a qualified exempt nonprofit hospital, qualified exempt nonprofit housing entity or church sanctuary, or materials to be affixed to and made a structural part of real estate located in another state. The purchaser will provide a Michigan Sales and Use Tax Contractor Eligibility Statement (Form 3520). See RAB 2016-18.

•Vehicle sales to non-reciprocal states for which no tax was paid to Secretary of State.

•Qualified nonprofit organizations with aggregate sales in the calendar year of less than $25,000 may exempt the first $10,000 of sales for fundraising purposes. Separately, veterans organizations exempt under IRC 501(c)(19) may exempt sales for the purpose of raising funds for the benefit of an active duty service member or veteran, up to $25,000 per event.

Line 5l: Tax Included in Gross Sales. Complete this line only if you have tax included in your gross sales. Subtract line 5m from line 4, then divide by 17.6667 and enter the amount.

Line 8: If more tax was collected than the amount on line 7, enter the difference.

Line 10: Total Discount Allowed for Timely Payments.

•Annual filers: Enter $72 if the tax due on line 9 is $108 or more. If tax due is less than $108, calculate the discount by multiplying line 9 by 2/3 (0.6667).

•Accelerated/Monthly/Quarterly filers: Enter total discounts allowed for the year.

Line 12: Enter total payments plus credits from 2021 Fuel Supplier and Wholesaler Prepaid Sales Tax Schedule (Form 5083), 2021 Fuel Retailer Supplemental Schedule (Form 5085), and 2021 Vehicle Dealer Supplemental Schedule (Form 5086), if applicable, made for the current tax year.

Note: all prepaid sales tax schedules are e-file only.

PART 2: USE TAX ON ITEMS PURCHASED FOR BUSINESS OR PERSONAL USE

Line 13: Unless a specific exemption applies enter purchases for which no sales or use tax was paid, including property withdrawn for business or personal use. See Michigan Use Tax Act, 1937 PA 94, for information on various exemptions. For questions contact Michigan Department of

Treasury at 517-636-4357. For Manufacturer/Contractors, alternative measures of the use tax base should be reported (see MCL 205.93a(1)(f) and (g) and RAB 2016-24 for more information). For all other taxpayers, report the “purchase price” as defined in MCL 205.92(f).

PART 3: WITHHOLDING TAX

Line 17: Enter the number of your W-2 and 1099 statements.

Line 18: Enter the total Michigan income tax withheld for the return year.

Line 19: Enter the total Michigan income tax withholding previously paid for the return year. (Do not include penalty and interest.)

PART 4: SUMMARY

Line 24: Enter the amount of overpayment from line 22 to be refunded. Refunds will not be made in amounts of less than $1.

Line 25: If line 21 (tax paid) is less than line 20 (tax due), enter the additional tax due. Pay any amount greater than or equal to $1.

Line 28: Total Payment Due. Add lines 25, 26 and 27. Make check payable to “State of Michigan.” Write the account number, “SUW Annual” and the tax year on the check. Do not pay if the amount due is less than $1.

How to Compute Penalty and Interest

If the return is filed after February 28 and no tax is due, compute penalty at $10 per day up to a maximum of $400. If the return is filed with additional tax due, include penalty and interest with the payment. Penalty is 5% of the tax due and increases by an additional 5% per month or fraction thereof, after the second month, to a maximum of 25%. Interest is charged daily using the average prime rate, plus 1 percent.

Refer to www.michigan.gov/taxes for current interest rate information or help in calculating late payment fees.

PART 5: SIGNATURE

REMINDER: Taxpayers must sign and date returns. Preparers must provide a Preparer Taxpayer Identification Number (PTIN), FEIN or Social Security Number (SSN), as well as a business name, business address and phone number.

Annual Return Reporting

All taxpayers are encouraged to file the annual return electronically using Michigan Treasury Online (MTO). Visit mto.treasury.michigan.gov for more information. Taxpayers with 250 or more employees must file their withholding return electronically. Do not include wage statements with your mailed annual return.

1099 and Wage Statement Reporting

Due Date. State copies of wage statements are due to the Department of Treasury on or before January 31. Late filing is subject to penalty as provided by the Revenue Act. Pursuant to the Income Tax Act of 1967, Treasury is unable to grant an extension of this filing.

2021 Form 5081, Page 6

1099 Reporting: Forms with Withholding. Taxpayers who withheld Michigan income tax on a 1099 form (1099- MISC, 1099-NEC, 1099-R, etc.) must report the income and the withholding on the Sales, Use, and Withholding Taxes Annual Return (Form 5081) and send a copy of the 1099 form directly to Treasury.

1099 Reporting: Forms without Withholding. Michigan participates in the combined federal/state 1099 filing program. Taxpayers who electronically filed 1099 forms using the IRS Filing Information Returns Electronically (FIRE) system should not send copies to Treasury. Taxpayers who did not electronically file 1099 forms through the IRS FIRE system should only send copies of the 1099-MISC forms to Treasury.

Filing Options. All taxpayers are encouraged to file state copies of wage statements electronically using Michigan Treasury Online (MTO). On MTO, you can submit wage statements for a particular business you have connected to via Tax Services or you can utilize Guest Services to send a copy of the IRS EFW2 file for one or multiple businesses.

For all MTO upload options, you will receive a confirmation of your submission. Visit mto.treasury.michigan.gov for more information. Alternatively, taxpayers can mail wage statements to: Michigan Department of Treasury Lansing, MI 48930. Do not include a copy of the annual return with wage statement mailing.

Magnetic Media. Treasury offers Magnetic Media filing to all taxpayers reporting wage statements to Michigan. You can send Magnetic Media by mail or electronically through MTO. Taxpayers with 250 or more employees must use MTO to electronically submit wage statements. For more information, refer to Transmittal for Magnetic Media Reporting of W-2s, W-2Gs and 1099s to the State of Michigan (Form 447).

Tax Assistance

For assistance, call 517-636-6925. Assistance is available using TTY through the Michigan Relay Center by calling 711.

How to Edit Michigan Form 165 Online for Free

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michigan gov form 165 spaces to complete

You need to provide the crucial information in the c, Agricultural, production, exemption, c d, Interstate, commerce, d f, Bad, debts, f g, Food, for, human, home, consumption, g h, Government, exemption, h i, Michigan, motor, fuel, taxi j, Direct, payment, deduction, j l, Tax, included, in, gross, sales, l Taxable, balance, Subtract, line, m, from, line XXXX, XXX and XXXX, XXX space.

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