Fill Your Michigan 5156 Template

The Michigan 5156 form is a Request for Tax Clearance Application, essential for businesses undergoing significant transitions such as sales or closures. This form, issued under Public Act 228 of 1975, requires specific sections to be completed based on the nature of your request. If you’re in the process of selling your business or need to close it down, it's important to fill out this form accurately to ensure compliance with state tax regulations.

To get started on your application, click the button below.

Get Form Here

Jump Links

Documents used along the form

When dealing with the Michigan 5156 form, there are several other documents that may be necessary to complete the process smoothly. Each document serves a specific purpose and helps ensure that all legal requirements are met. Below is a list of these important forms and documents.

Form 163 - Notice of Change or Discontinuance: This form is required when a business is discontinuing operations or changing its structure. It provides the Michigan Department of Treasury with essential information about the business's status.
Federal Business Tax Returns: If a business has not registered with the Michigan Department of Treasury, it must submit the last four years of Federal Business Tax Returns. This helps establish the business's tax history.
Small Estate Affidavit: For those navigating asset transfers, consider the complete small estate affidavit resources to simplify the process for heirs.
Corporate Dissolution Documents: These documents are necessary for formally dissolving a corporation in Michigan. They include the articles of dissolution filed with the Michigan Department of Licensing and Regulatory Affairs (LARA).
Escrow Agreement: If there is money held in escrow pending the tax clearance, an escrow agreement outlines the terms and conditions under which the funds are held. This document is crucial for protecting both the seller and buyer.
Purchase Agreement: This document details the terms of the sale of the business or its assets. It includes information about the buyer, seller, and the assets being sold, ensuring that all parties are clear on the transaction.
Tax Clearance Certificate: This is the final document issued by the Michigan Department of Treasury, confirming that all tax obligations have been met. It is essential for completing the sale or dissolution process.
Authorization for Disclosure of Tax Information: This form allows a business owner to designate a third party to receive tax clearance information. It is optional but can be helpful if someone else is handling the process.

Each of these documents plays a vital role in ensuring compliance with Michigan laws when selling or closing a business. Properly preparing and submitting these forms can help avoid delays and complications in the process.

Michigan 5156 Preview

Michigan Department of Treasury 5156 (Rev. 05-15)

Request for Tax Clearance Application

Issued under authority of Public Act 228 of 1975, as amended.

ReAson foR The RequesT

I am selling my business or business assets. l Complete Part 1 and Part 4 ONLY

I am closing my business and my business is registered as a corporation with the Michigan Department of Licensing and Regulatory Affairs.

l Complete Part 1, Part 2, and Part 4 ONLY

I have completed the sale of my business or business assets and require a tax clearance certiicate. l Complete Part 1, Part 3, and Part 4 ONLY

PART 1: GeneRAl InfoRmATIon — To be completed by ALL applicants.

Current Business or Corporation Name

FEIN or TR Number

Previous Business or Corporation Name

Address

City

State

ZIP Code

PART 2: CoRPoRATe DIssoluTIon oR WIThDRAWAl — To be completed by any business entity incorporated through the Michigan Department of Licensing and Regulatory Affairs (LARA).

noTe: The date that the business is actually discontinued (below) should relect the date on the Form 163 Notice of Change or Discontinuance submitted to the Michigan Business Tax Registration Unit. If this form has not been submitted, please complete and attach with this request. If the business and its FEIN number were not registered with the Michigan Department of Treasury, please submit the last four years of Federal Business Tax Returns in place of the Form 163.

Corporate ID Number Assigned by LARA	Date Incorporated with the State through LARA	Date Business Actually Discontinued in Michigan

If this corporation had no tax liability or was not required to register with the Michigan Department of Treasury, provide a detailed explanation in the space below. Substantiate with attachments:

Continue and sign on Page 2

Form 5156, Page 2

PART 3: sAle of BusIness oR AsseTs — To be completed by any business (all types) that has sold all or part of the business prior to submitting this application.

ImPoRTAnT: This is a request by any business entity that has sold most of its assets, but the business shell will remain in place to continue iling tax returns (when due) until the business later determines whether it will ile a Certiicate of

Dissolution with the LARA Corporation Division.

Does the business operate under a trade name?	Yes	No
Does the business operate under a trade name?

If yes, list the name it is doing business as
Will you continue business activity after clearance under this FEIN or TR number?	Yes	No
If no, have you submitted a Notice of Change or Discontinuance (Form 163)?	Yes	No

If yes, date of discontinuance reported on Form 163 (MM-DD-YYYY)

If no, attach a completed Form 163 with this request.
.........................................Date of sale of business or business assets to another entity
Is money being held in escrow pending receipt of a tax clearance?	Yes	No
If yes, how much is held in escrow?
If yes, how much is held in escrow?

PuRChAseR InfoRmATIon

Purchaser Business Name

Purchaser FEIN

Purchaser Address

City

State

ZIP Code

PART 4: CeRTIfICATIon AnD AuThoRIzATIon foR DIsClosuRe of InfoRmATIon

I declare under penalty of perjury that I am the owner, oficer, or member of the business for which tax clearance is requested and that the information entered is true.

Name (Print or Type)

Title

Signature

Date

Telephone Number

Address

City

State

ZIP Code

AuThoRIzATIon foR DIsClosuRe of TAx CleARAnCe InfoRmATIon (This is not a required section)

use this section to designate a third party to receive all tax clearance information for the business listed in Part 1.

The above signed authorizes the Michigan Department of Treasury, Tax Clearance Section, to release any and all tax information and outstanding balances due for the purpose of tax clearance to the individual(s) listed below. This authorization does not include signature power. This authorization is only valid for 90 days from the date of the signature above.

Name

Telephone Number

Fax Number

Address

City

State

ZIP Code

Instructions for form 5156,

Request for Tax Clearance

Part 1: General Information – All fIelDs In ThIs seCTIon musT Be ComPleTeD

NOTE: If you are selling a business but the sale has not occurred, the Michigan Department of Treasury (Treasury) will provide known or estimated tax liability for the purpose of

establishing a tax escrow. Once the sale is complete, submit a new request completing Part 1 and Part 3 to obtain a certiicate

for the release of the escrowed funds.

Current Business or Corporation Name: Enter the

legal business/corporation name. If the business is a sole proprietorship, enter the owner’s name here, with the last name

irst.

Federal Employer Identiication Number (FEIN) or Treasury Issued Account Number (TR): Enter the business’

IRS-issued FEIN or Treasury-issued TR number.

Business Street Address/City/State/ZIP Code: Enter the

physical business address. (A PO Box is not acceptable in this ield.)

Part 2: Corporate Dissolution or Withdrawal

Complete this section if you are dissolving a domestic (Michigan) corporation or if you have a foreign corporation (incorporated outside Michigan) that is withdrawing from

Michigan. A corporation is any business entity that has iled

and incorporated with the Michigan Department of Licensing and Regulatory Affairs (LARA).

NOTE: A Tax Clearance Certiicate must be requested from

Treasury within 60 days of dissolution or withdrawal of business from Michigan.

Corporate Identiication Number: Enter the business’

LARA-assigned Corporate Identiication Number (CID). This number can be located on the annual statements iled with LARA or online at www.michigan.gov/lara.

Date Business Discontinued in Michigan: Enter the date

your business ceased operations in Michigan. This date should relect the date entered on the Notice of Change or

Discontinuance (Form 163). If you have failed to complete and submit Form 163 to the Registration Unit, you must complete and remit Form 163 with this application. In the event your business’ FEIN was never registered with Treasury, you must include the last four years of Federal Returns for the business in place of Form 163.

Date Incorporated with the State of Michigan through

LARA: Enter the date of incorporation. For additional

information, go to LARA’s Web site: www.michigan.gov/lara.

If the corporation had no tax liability or was not required to register with Treasury, provide a detailed explanation. In rare cases, a corporation may not have had any tax liability or may not have registered for taxes with the State of Michigan. If your business falls into this category, use the space provided

to explain why no taxes were due and registration was not required. Include dates of operation and the nature of the business. You must include attachments with your application to substantiate your position in order for it to be fully reviewed.

Part 3: sale of Business or Assets has occurred

Complete this section if your business or any of the assets have been sold.

NOTE: You must continue to ile all returns by their due date until you elect to ile a dissolution or withdrawal. A Tax Clearance Certiicate for Sale of Business and/or Business

Assets is required when a bulk sale or transfer is made under

the Uniform Commercial Code. A Tax Clearance Certiicate

for Sale of Business and/or Business Assets is granted after Treasury determines that all Sales, Use, Income Withholding, Cigarette, Motor Fuel, Single Business, Michigan Business,

and Corporate Income taxes have been paid for the period of operation. When a Tax Clearance Certiicate for Sale of

Business and/or Business Assets is issued, money held in escrow is released and the purchaser is relieved of successor liability. The seller agrees to keep all books and records of the business until they are released by Treasury. The seller is liable

for all taxes due from the operation of the business during the time speciied by Treasury.

Does the business operate under a trade name? If your business operates under any name other than the legal corporation name, check (with an “X”) yes in the appropriate box. On the next line, enter the trade name, assumed name, or doing business as name. If your business only operates under its legal corporation name, check (with an “X”) no.

Are you continuing business activity after clearance under this FEIN or TR number? If you plan to continue

to operate your business within the State of Michigan, check (with an “X”) yes in the appropriate box. If you do not plan to continue operating, check (with an “X”) no. If you have already

submitted a Form 163 to the Registration Unit, enter the discontinuance date listed on that form. If you have yet to ile

Form 163 with the Registration Unit, attach a completed Form 163 with this application.

NOTE: The following items should ONLY be illed out if the

sale has occurred, not before.

Date of Sale of Business or Business Assets to Another

Entity. Enter the date all or part of the business was sold.

Is money being held in escrow pending receipt of a Tax Clearance Certiicate? If money is being held in escrow from

the sale, check (with an “X”) yes and enter the amount being held.

Business Name, Street Address, and FEIN of Purchaser.

Enter purchaser’s legal name, address, and FEIN.

Part 4: Certiication and Authorization for Disclosure of Tax Clearance Information

NOTE: All ields directly under the Certiication must be completed. If authorizing the disclosure of information, all ields in that section must be completed as well.

This section must be completed for all requests. All requests must be submitted by an owner, oficer, or member of the business. By completing the Certiication, you are declaring

under penalty of perjury that all information entered is true.

Complete this section with your printed name, title, signature, daytime phone number, contact address, and the date in which the application was completed.

submitting form 5156

Complete and mail this form to:

Michigan Department of Treasury

Tax Clearance Section

P.O. Box 30778

Lansing, MI 48909

For additional information, call (517) 636-5260, Monday through Friday (excluding holidays), from 8 a.m. to 5 p.m.

Similar forms

The Michigan 5156 form, which is a Request for Tax Clearance Application, shares similarities with several other documents used in business transactions and tax matters. Below is a list of eight documents that are comparable to the Michigan 5156 form, highlighting how they relate to it.

Form 163 - Notice of Change or Discontinuance: This form is required when a business is discontinuing its operations. It is used to officially notify the Michigan Department of Treasury about the cessation of business, similar to the dissolution process outlined in the Michigan 5156 form.
Form 990 - Return of Organization Exempt from Income Tax: Nonprofit organizations use this form to report their financial activities. Like the Michigan 5156, it requires detailed information about the organization’s operations and compliance with tax obligations.
Last Will and Testament Form - This essential legal document ensures your wishes regarding asset distribution and guardianship are honored. For more details, visit Forms Georgia.
Form 1040 - U.S. Individual Income Tax Return: Individuals use this form to report their annual income and tax liability. Both forms require accurate reporting of financial information to ensure compliance with tax regulations.
Form 1065 - U.S. Return of Partnership Income: Partnerships utilize this form to report income, deductions, and other tax-related information. Similar to the Michigan 5156, it addresses the need for transparency in financial reporting.
Form 941 - Employer’s Quarterly Federal Tax Return: Employers use this form to report income taxes, Social Security tax, and Medicare tax withheld from employee wages. Like the Michigan 5156, it is essential for maintaining compliance with tax obligations.
Form 1120 - U.S. Corporation Income Tax Return: Corporations file this form to report their income and tax liability. Both the 1120 and the Michigan 5156 require comprehensive information about business operations and financial status.
Form 8553 - Election to Use a Section 1362 Election: This form is used by corporations to elect S corporation status for tax purposes. Similar to the Michigan 5156, it involves significant tax implications and requires detailed business information.
Form 7004 - Application for Automatic Extension of Time to File Certain Business Income Tax, Information, and Other Returns: This form allows businesses to request an extension for filing tax returns. Like the Michigan 5156, it is part of the overall tax compliance process.

Misconceptions

Understanding the Michigan 5156 form can be tricky. Here are five common misconceptions that people often have:

Only corporations need to fill out the form. Many believe that only corporations are required to complete the Michigan 5156 form. However, any business entity, including sole proprietorships, may need to submit this form depending on their situation.
The form is only necessary when closing a business. Some think the 5156 form is only relevant for businesses that are shutting down. In reality, it’s also required when selling business assets or if the business is undergoing a corporate dissolution.
All parts of the form must be completed regardless of the situation. This is a misunderstanding. Depending on whether you are selling assets, closing the business, or seeking a tax clearance, only specific parts of the form need to be filled out. Following the instructions carefully can save time and effort.
A tax clearance certificate guarantees no future tax liabilities. Many assume that obtaining a tax clearance certificate means they are free from any future tax responsibilities. This isn’t accurate. The certificate only verifies that all taxes due at the time of application have been paid.
Once submitted, the form is processed immediately. Some people expect quick processing of the Michigan 5156 form. However, it can take time for the Michigan Department of Treasury to review the application and issue the certificate, so planning ahead is essential.

Being aware of these misconceptions can help streamline the process and ensure that all necessary steps are taken when dealing with the Michigan 5156 form.

Detailed Instructions for Using Michigan 5156

After completing the Michigan 5156 form, it is essential to submit it to the Michigan Department of Treasury for processing. This step is crucial for obtaining the necessary tax clearance based on your specific situation regarding the business sale or closure.

Begin by filling out Part 1, which requires general information. Provide the current business or corporation name, FEIN or TR number, previous business name, and the physical address including city, state, and ZIP code.
If your business is a corporation and you are dissolving it, complete Part 2. Include the corporate ID number assigned by LARA, the date incorporated, and the date the business actually discontinued operations in Michigan. If applicable, provide an explanation if there was no tax liability.
If you have sold your business or assets, proceed to Part 3. Indicate whether the business operates under a trade name and whether you will continue business activities. Enter the date of sale and any escrow amounts if applicable. Also, provide the purchaser's information including their business name, FEIN, and address.
Complete Part 4 for certification. Print your name, title, and sign the form. Include your daytime phone number and contact address, along with the date of completion.
Review the entire form for accuracy and completeness before mailing it.
Send the completed form to the Michigan Department of Treasury, Tax Clearance Section, at P.O. Box 30778, Lansing, MI 48909.

Dos and Don'ts

When filling out the Michigan 5156 form, it is essential to follow specific guidelines to ensure accuracy and compliance. Here is a list of things you should and shouldn't do:

Do complete all required fields in Part 1, including your business name and FEIN or TR number.
Do ensure you select the appropriate parts of the form based on your reason for requesting tax clearance.
Do provide a detailed explanation if your corporation had no tax liability.
Do attach any necessary documents, such as Form 163, if applicable.
Do sign and date the form to certify the information is true.

Don't use a P.O. Box as your business address; a physical address is required.
Don't leave any sections blank if they are required; this may delay processing.
Don't submit the form without verifying that all information is accurate and complete.
Don't forget to keep copies of all documents submitted for your records.
Don't assume that the tax clearance will be granted without fulfilling all obligations first.

Fill Your Michigan 5156 Template

Documents used along the form

Michigan 5156 Preview

Similar forms

More PDF Documents

Misconceptions

Detailed Instructions for Using Michigan 5156

Dos and Don'ts