Fill Your Michigan 514 Template

The Michigan 514 form is a Conditional Tax Clearance Request issued by the Michigan Department of Treasury. This form is specifically designed for sole proprietorships, partnerships, limited liability companies, or corporations that have sold most of their assets while retaining the corporate shell to continue filing tax returns. Completing this form is essential for businesses seeking to ensure compliance with state tax obligations during the transition period.

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Documents used along the form

The Michigan 514 form is a crucial document for businesses seeking conditional tax clearance in Michigan. It is often accompanied by several other forms and documents that help facilitate the process. Below is a list of commonly used documents that may be required alongside the Michigan 514 form.

Limited Power of Attorney (Form 3840): This document allows an individual to act on behalf of the business owner or officer in matters related to tax clearance. It is necessary when someone other than the owner is submitting the 514 form.
Final Federal 941 Return: This return reports the employer's quarterly federal tax obligations. It is essential to include the final 941 return to show that all payroll taxes have been accounted for prior to discontinuing business operations.
Affidavit of Gift Form: To ensure the legal transfer of gifts, use our comprehensive Affidavit of Gift documentation to formalize the process appropriately.
Michigan Tax Returns: All unfiled Michigan tax returns up to the date of business discontinuance must be submitted. This includes any state income tax or sales tax returns that are due.
Escrow Agreement: If there are funds held in escrow pending tax clearance, this document outlines the terms of the escrow arrangement, including the amount and the parties involved.
Certificate of Dissolution: If the business intends to formally dissolve, this document is necessary to officially end the business entity's existence with the state of Michigan.
Business Sale Agreement: If the business has been sold, this agreement details the terms of the sale, including the buyer's information and the date of sale, which is crucial for tax clearance purposes.
List of Business Locations: A document listing all business locations still in operation is needed if the business operates multiple sites. This helps clarify which locations require clearance.
Taxpayer Identification Information: This includes the Federal Employer Identification Number (FEIN) or Taxpayer Registration Number (TR Number) for the business, which is essential for processing the tax clearance request.

Each of these documents plays a significant role in ensuring a smooth and efficient tax clearance process. It is important to gather and submit all required paperwork to avoid delays and complications.

Michigan 514 Preview

Michigan Department of Treasury 514 (Rev. 09-12)

Date

Conditional Tax Clearance Request

Issued under the provision of Public Act 144 of 1921, as amended; Public Act 265 of 1947, as amended; Public Act 281 of 1967, as amended; Public Act 119 of 1980, as amended; Public Act 167 of 1933, as amended; and Public Act 94 of 1937, as amended.

IMPORTANT: This is a request for a Michigan Conditional Tax Clearance by a sole-proprietorship, partnership, limited liability company or corporation that has sold most of its assets, but the corporate shell will remain to continue iling tax returns (when due) until the corporation later determines whether it will ile a Certiicate of Dissolution with the Corporation Division.

This form must be completed in its entirety.

Name of Sole-Proprietorship, Partnership or Corporation, Limited Liability Company

Federal Employer Identiication Number or TR Number

Owner(s) Name(s) (if sole-proprietorship or partnership)

Social Security Number(s)

Doing Business As (trade name)

Business Street Address of Location Requesting Clearance

City

State

ZIP Code

If a Corporation, Date Incorporated in Michigan (mm/dd/yyyy)

Date Business Started at This Location (mm/dd/yyyy)

Date Business Discontinued at This Location (mm/dd/yyyy)

Ending Date of Last Payroll at This Location (mm/dd/yyyy)

Are you continuing business activity after clearance?

If Yes, Expected Gross Receipts for the Year

Yes

Residence Address of Discontinued Taxpayer

Residence Telephone Number (including area code)

Does taxpayer operate more than one place of business?

If multiple locations, is clearance requested for the above location only?

Yes

Names and Addresses of Business Locations Still in Operation (use reverse side if necessary)

Have you sold or disposed of business to another entity?

If Yes, Date of Sale (mm/dd/yyyy)

Yes

If Yes, Name and Address of Purchaser

Purchaser’s Federal Employer Identiication Number or TR Number

Is money being held in escrow pending receipt of a tax clearance?

Yes

Amount if Yes:

Business Name and Address of Holder of Escrow Money

Attention:

Holder’s Telephone Number (include area code)

Month(s) Included on Final Federal 941 Return

Name and Location of Holder of Seller’s Books and Records

Certiication: I declare under penalty of perjury that I am the owner, oficer or, member of the business on which tax clearance is requested and that the information is true (Submit a Limited Power of Attorney (Form 3840) if not the owner, oficer, or member).

Print Name	Title

Signature

A business requesting a Michigan Conditional Tax Clearance should forward all uniled Michigan tax returns (up to the date of discontinuance) together with all remittances for those returns with this form to the address below. Mail form directly to: Tax Clearance

Section, Michigan Department of Treasury, P.O. Box 30168, Lansing, MI 48909.

Similar forms

The Michigan 514 form is a crucial document for businesses seeking conditional tax clearance. It shares similarities with several other important forms that also serve to facilitate tax-related processes for businesses. Here’s a look at six documents that are comparable to the Michigan 514 form:

Form 941: This is the Employer's Quarterly Federal Tax Return. Like the Michigan 514, it involves reporting tax information and is essential for businesses to stay compliant with tax obligations. Both forms require accurate reporting of financial information to avoid penalties.
Form 1065: This form is used for partnerships to report income, deductions, and other tax-related items. Similar to the Michigan 514, it requires detailed information about the business and its partners, ensuring that all parties are aware of their tax responsibilities.
Durable Power of Attorney: The Illinois Durable Power of Attorney form allows individuals to designate someone to make financial and healthcare decisions on their behalf when they are incapacitated. For more information and to obtain the form, visit Illinois PDF Forms.
Form 1120: The U.S. Corporation Income Tax Return is vital for corporations to report their income and pay taxes. Much like the Michigan 514, it is necessary for a corporation to provide a clear financial picture to the tax authorities, especially when selling assets.
Form 990: Nonprofit organizations use this form to report their financial information to the IRS. Similar to the Michigan 514, it serves as a transparency tool, ensuring that nonprofits disclose their financial activities and maintain compliance with tax regulations.
Form 1040: This is the Individual Income Tax Return, which many business owners file. Like the Michigan 514, it requires personal financial information and is crucial for determining tax obligations, especially for sole proprietors.
Certificate of Dissolution: This document is filed when a business formally closes its operations. It is similar to the Michigan 514 in that both deal with the cessation of business activities and require tax clearance to ensure all obligations are met before dissolution.

Understanding these forms can help streamline the process of managing business taxes and compliance. Each document plays a vital role in ensuring that businesses operate within the legal framework and avoid unnecessary penalties.

Misconceptions

Understanding the Michigan 514 form is crucial for businesses undergoing a significant transition. However, several misconceptions can lead to confusion. Here are six common misunderstandings about this form:

Misconception 1: The form is only for corporations.

Many believe that only corporations need to file the Michigan 514 form. In reality, this form is applicable to sole proprietorships, partnerships, limited liability companies, and corporations that have sold most of their assets.

Misconception 2: Filing the form automatically cancels business taxes.

Some people think that submitting the Michigan 514 form means they no longer have to pay taxes. This is not true. The form requests a conditional tax clearance, but businesses must continue to file tax returns until officially dissolved.

Misconception 3: All debts must be settled before filing.

While it is essential to address outstanding tax obligations, not all debts need to be cleared before submitting the form. The clearance request is part of the process, and the state will review the business's tax status.

Misconception 4: The form can be submitted without complete information.

Some believe they can submit the form with incomplete details. However, the Michigan 514 form must be filled out entirely. Incomplete submissions may delay the clearance process.

Misconception 5: The clearance is immediate.

Many expect an instant clearance upon submission. The review process takes time, and businesses should not assume they can operate without tax obligations during this period.

Misconception 6: The form is only necessary for businesses that are closing down.

While the form is often associated with business closures, it can also be used when a business is restructuring or selling assets but wishes to maintain its corporate status for future tax filings.

Being aware of these misconceptions can help ensure a smoother process when dealing with the Michigan 514 form. Proper understanding can lead to better compliance and fewer complications down the line.

Detailed Instructions for Using Michigan 514

Completing the Michigan 514 form is an essential step for businesses seeking conditional tax clearance. After filling out the form, it must be mailed along with any unfiled tax returns to the appropriate department. Here’s how to fill out the form step by step.

Identify Your Business Type: Determine if you are a sole proprietorship, partnership, limited liability company, or corporation.
Provide Business Information: Enter the name of your business, the Federal Employer Identification Number (EIN) or TR Number, and if applicable, the owner(s) name(s) along with their Social Security Number(s).
Fill in Trade Name: If your business operates under a different name, include the Doing Business As (DBA) name.
Enter Business Address: Provide the street address, city, state, and ZIP code of the location requesting clearance.
Corporate Details: If applicable, input the date your corporation was incorporated in Michigan, the date business started at this location, and the date business was discontinued at this location.
Payroll Information: Indicate the ending date of the last payroll at this location.
Continuing Business Activity: Answer whether you will continue business activity after clearance. If yes, state the expected gross receipts for the year.
Residence Information: Fill in the residence address and telephone number of the discontinued taxpayer.
Multiple Business Locations: Indicate if the taxpayer operates more than one place of business and whether clearance is requested for the location listed.
Business Locations Still in Operation: List names and addresses of any business locations still operational. Use the reverse side if necessary.
Sale of Business: If you have sold or disposed of the business, indicate yes and provide the date of sale, along with the name and address of the purchaser and their EIN or TR Number.
Escrow Information: State if money is being held in escrow pending receipt of a tax clearance. If yes, provide the amount and details of the holder.
Final Federal 941 Return: Specify the months included on the final Federal 941 return.
Books and Records: Provide the name and location of the holder of the seller’s books and records.
Certification: Sign and print your name, title, and ensure that the information provided is true. If you are not the owner, officer, or member, submit a Limited Power of Attorney (Form 3840).

Once the form is complete, mail it along with all unfiled Michigan tax returns and remittances to the Tax Clearance Section at the Michigan Department of Treasury. This ensures that your request for clearance is processed efficiently.

Dos and Don'ts

When filling out the Michigan 514 form, it’s important to be thorough and accurate. Here’s a list of things you should and shouldn’t do:

Do complete all sections of the form fully.
Do provide accurate names and identification numbers.
Do ensure that the information matches your business records.
Do sign and date the form before submission.
Don't leave any fields blank unless instructed otherwise.
Don't submit the form without including all unfiled tax returns.
Don't forget to include remittances for any outstanding taxes.
Don't provide false information, as it may lead to penalties.