The Michigan 1353 form, issued under the authority of Public Act 228 of 1975 by the Michigan Department of Treasury, is a comprehensive Nexus Questionnaire designed for businesses and individuals to detail their operational connections to the state. This form helps determine tax obligations by assessing aspects like physical presence, economic activity, and types of business operations within Michigan. To ensure compliance and understand your tax responsibilities in Michigan, it's crucial to fill out the Michigan 1353 form with accuracy. Click the button below to start filling out your form.
The Michigan 1353 form, issued by the Michigan Department of Treasury under the authority of Public Act 228 of 1975, serves as a comprehensive Nexus Questionnaire crucial for businesses and individuals conducting or considering business activities within the state. This pivotal form gathers detailed information ranging from the legal name of the business or individual, through to the specific nature of the business's activities, to help determine tax obligations rooted in the utilization of Michigan’s resources or engagement within its market. Addressing inquiries such as whether the company has received a Letter of Inquiry Concerning Michigan Taxes, the form delves further into the extent of the company's physical and economic presence in Michigan, examining factors such as physical property, employee activities, sales, and solicitation practices within the state. Moreover, it requests disclosures related to affiliations that might create nexus, which is essentially a connection strong enough to mandate tax filing within Michigan. Compliance with this form is vital not only for meeting state tax regulations but also for negotiating the complexities of nexus that could impact a company's tax liability. As such, accurately completing the Michigan 1353 form represents a critical step for businesses in ensuring adherence to Michigan’s tax requirements and navigating the intricacies of state tax law effectively.
Michigan Department of Treasury
Issued under authority of Public Act 228 of 1975.
1353 (Rev. 11-19)
Michigan Department of Treasury Nexus Questionnaire
Legal Name of Business or Individual (hereafter referred to as Company)
Federal Employer Identification Number (FEIN), SSN or TR Number
DBA
Street Address
City
State
ZIP Code
1. If your company received a Letter of Inquiry Concerning Michigan Taxes enter reference number:
2. Briefly describe your company’s business activity defined under MCL 206.603(2)
3. Describe how your company sells its product(s) and/or service(s) in the State of Michigan
Physical Presence
Check all that apply. Refer to Table 1 and 2 on Page 3 for specific examples of business activity.
4.
Employees, agents, representatives, independent contractors, subcontractors, brokers, or other affiliated persons (both Michigan
residents and nonresidents) conduct business activity at any time within Michigan on your behalf.
Indicate the number of days when someone has conducted business activities within Michigan on your behalf:
List the last four completed
tax year(s) (mm/dd/yyyy)
Yr (
)
Check (X) the number of days
1 day
during the tax year
2 or more days
Describe nature of activity:
5.
Property within Michigan. The company owns, rents, leases, maintains, or has the right to use tangible personal property, real property, or
an office or other establishment permanently or temporarily physically located in Michigan.
Enter period(s):
6.
Affiliates within Michigan. The company entered into an agreement, directly or indirectly, with 1 or more residents under which the
resident, for a commission or other consideration, directly or indirectly, referred potential purchasers, whether by a link on an internet
website, in-person oral presentation, or otherwise, to the company. (Refer to RAB 2015-22).
a.
The cumulative gross receipts from sales of tangible personal property to Michigan purchasers who were referred to the company
by Michigan residents (through an agreement with the company) exceeded $10,000 in a 12-month period.
b.
The total cumulative gross receipts from sales of tangible personal property to Michigan purchasers exceeded $50,000 in a 12-month
period.
Economic Presence
Check all that apply.
7.
Michigan (non-taxable and taxable) sales exceeded $100,000 or your company completed 200 or more (non-taxable and taxable)
separate transactions. (Refer to RAB 2018-16 for Michigan’s Sales and Use Tax Nexus Standards for Remote Sellers.)
Enter calendar year(s):
8. Your company or the Unitary Business Group (UBG):
Actively solicits sales in Michigan through the use of mail, telephone, or e-mail; advertising; or maintenance of an internet site in
which sales transactions occur. (Refer to RAB 2013-9 for definition of “Actively Solicits”)
Has gross receipts of $350,000 or more per year sourced to Michigan. (Refer to RAB 2014-5 for CIT Nexus Standards)
9.
The company has an ownership or beneficial interest in a flow-through entity (directly or indirectly through 1 or more flow-through entities)
which has nexus with this state. (Refer to RAB 2014-5 or MCL 206.621(1))
Enter the calendar year(s):
STOP If any of lines 4 through 9 are checked or the company is an Insurance Company with written premiums on property or risk located or residing in Michigan, continue completing this form. For all others, sign and mail to address on last page.
1353, Page 2
10.Check all that apply to your business activity:
Sale of property.
Indicate type of property:
Real
Tangible Personal
Rental Property (whether property is real, personal, tangible or intangible)
Intangible
Performance of Services
Financial Institution (Refer to MCL 206.651)
Insurance Company (Refer to MCL 206.607)
Protected Activities (PL 86-272)
11.Indicate which activities below (if any) the Company’s employees, agents, representatives, independent contractors, brokers or other affiliated persons (both Michigan residents and nonresidents) conducted within Michigan for the last four completed tax years.
Solicit sales to purchasers in this state whether sales are wholesale, retail, or otherwise. (Solicitation means any speech or conduct that explicitly or implicitly invites an order, and ancillary activities that neither explicitly or implicitly invites an order.)
Maintain samples that are not sold or provided for other consideration, attend trade shows where no sales are made/orders taken, provide highly
technical presentations to solicit a sale (not after a sale has been made)
Deliver goods using vehicles owned, leased, used or maintained by the company (Non-Transportation Companies)
Additional comments:
Unprotected Activities (PL 86-272)
12.Indicate which activities below (if any) the Company’s employees, agents, representatives, independent contractors, brokers or other affiliated persons (both Michigan residents and nonresidents) conducted within Michigan for the last four completed tax years.
Provide any services within Michigan, including but not limited to, consulting services, entertainment services, rental services, professional services, or transportation services provided as a transportation company (transport through, into, or from Michigan)
Maintain, occupy, own, lease or use an office, distribution facility, warehouse, or similar place of business in Michigan to facilitate the sale or
delivery of tangible personal property or maintain a market in Michigan
Provide customers with any kind of technical assistance or service including, engineering assistance, design service, quality control, product inspections, or similar services beyond the purpose of soliciting a sale
Sale of intangible property within Michigan
Assemble, install, or supervise installation at or after shipment or delivery
Make repairs or provide maintenance or service to property sold or to be sold to Michigan customers
Conduct training courses, seminars, or similar events for non-solicitation personnel, customers or potential customers Collect on current or delinquent accounts; investigate, handle, or assist in resolving customer complaints
Solicit, negotiate, or enter into franchising, licensing or similar agreements
Attend and/or participate at a trade show at which sales are solicited or made
Maintain a sample or display room in excess of 14 days or carry samples for sale, exchange or distribution in any manner for consideration or
other value
Consign stock of goods or other tangible personal property to any person in Michigan for sale
Pick up damaged goods using vehicles owned, leased, used, or maintained by the company
Additional Comments:
13. Do the Company’s employees approve or accept purchase orders or perform credit checks or authorize credit, while physically present in Michigan?
No
Yes, enter period(s):
14. The company has filed the following Michigan taxes:
None
Sales Tax
Corporate Income Tax
Use Tax on Sales/Rentals
Individual or Composite Individual Income Tax, under SSN/FEIN:
Payroll Withholding
Use Tax on Purchases
1353, Page 3
15.What is the company’s State of Incorporation/Formation?
16.What is the company’s State of Domicile/Residence?
17.When was the company incorporated/formed?
18.When did the company’s business begin (if different than incorporation/formed)?
19.Organization Type (check one)
Individual
Limited Liability Company
S-Corporation
Other:
C-Corporation
Partnership
20.
Federal Tax Return Type (check one)
1040, Schedule C or E
1120S, S-Corporation
1065, Partnership
1120, Corporation
Form 990-T
Other Form
None, related entity files. Check Return Type of related entity above and list FEIN:
21.
If your company is a member of a UBG, enter the Designated Member FEIN. (Refer to RAB 2013-1 for definitions of a UBG
Designated Member.)
1041, Fiduciary
Certification
I declare, under penalty of perjury, that the information provided in this questionnaire and any attachments is, to the best of my knowledge, true,
correct and complete (If prepared by a person other than an officer, partner or owner of the business, this declaration is based on all information of
which you have knowledge).
Preparer’s Signature
Date
Print or Type Name and Title
Telephone Number
Mailing Address (if different than address on Page 1)
Email Address
Mail To:
For U.S. Mail (Including Certified/Registered)
Discovery and Tax Enforcement Division
PO Box 30140
Lansing MI 48909
Table 1
Business Activities Which Create Nexus
•Inspect dealer inventories, review customer displays and shelving or replace stale product
•Provide transportation services or provide shipping information and/or coordinate deliveries
•Conduct seminars
•Perform managerial or research activities, or lease employment or personnel services
•Meet with customers to determine user satisfaction, or maintain display room or sample
•Pick up or replace damaged, defective or returned property, or repossess property
•Sell additional service contracts
•Perform computer data processing
•Provide private investigation, protection, patrol, watchman or armored car services
•Perform other types of services than those listed
•Secure deposits for sale
For Courier Delivery Service
7285 Parsons Drive
Dimondale MI 48821
Table 2
Real and Tangible Personal Property Held in Michigan
Which Create Nexus
•Repair shop, parts department or warehouse
•Office equipment or fixtures of any kind
•Employment office or purchasing office
•Mobile office, meeting place for directors, or in-home office (which is used as business address, location to receive callers, store inventory, or where office expenses are paid, reimbursed or supplied by your company)
•Retail outlet
•Motor store(s) (trucks with driver sales person)
•Motor vehicles of any kind
•Telephone answering service
•Stock of goods (including consignment)
•Tools and dies at suppliers
•Real property or fixtures to real property of any kind
For a more complete explanation of Michigan’s Sales, Use, and Corporate Income Tax nexus standards, refer to Treasury’s Web site: www.michigan.gov/taxes.
Filling out the Michigan 1353 form is a crucial step for businesses operating within Michigan to ensure compliance with state tax laws. This form helps determine your business's nexus, or connection, to the state, impacting your tax obligations. The process involves providing detailed information about your business's activities, physical presence, and economic engagement in Michigan. Accuracy and thoroughness in completing this form are essential to avoid potential legal issues and ensure your business meets all necessary tax requirements.
After you submit the Michigan 1353 form, your business's information will be reviewed to determine the extent of your tax obligations to the state. It is crucial to keep a copy of the form and any correspondence for your records. Timely response to any follow-up inquiries from the Michigan Department of Treasury is critical to maintain compliance and avoid any potential legal complications. Remember, understanding and adhering to state tax laws can significantly impact your business's operations and financial health in Michigan.
The Michigan 1353 form, issued under the authority of Public Act 228 of 1975, is a Nexus Questionnaire designed by the Michigan Department of Treasury. Its primary purpose is to gather information to determine if a business or individual has nexus in Michigan. Nexus, in this context, means a sufficient connection to the state which obligates the filing of tax returns and the payment of taxes.
This form is intended for businesses or individuals receiving a Letter of Inquiry Concerning Michigan Taxes, or those who believe they may have a nexus with Michigan. The form requires detailed information about the company's business activities, physical and economic presence in the state, and relationships with affiliates within Michigan. It's crucial for any entity with business operations or sales activities in Michigan to consider completing this form.
To complete the Michigan 1353 form, the following information is essential:
Several types of activities can establish a nexus with Michigan, necessitating a business to fill out the 1353 form. These include:
Typically, the Michigan Department of Treasury will specify a due date in the Letter of Inquiry sent to businesses. If you're voluntarily filling out the form to disclose your nexus status, it's advisable to do so as soon as possible to ensure compliance with Michigan tax laws. Timely submission can also help avoid potential penalties and interest on unpaid taxes.
The completed form should be mailed to:
For U.S. Mail (Including Certified/Registered): Michigan Department of Treasury Discovery and Tax Enforcement Division PO Box 30140 Lansing, MI 48909
For Courier Delivery Service: Michigan Department of Treasury Discovery and Tax Enforcement Division 7285 Parsons Drive Dimondale, MI 48821
If you require assistance or have questions regarding the Michigan 1353 form, it's recommended to consult with a tax professional familiar with Michigan tax laws. Additionally, the Michigan Department of Treasury's website provides resources and contact information for further assistance.
Filling out the Michigan 1353 form can be a complex process, with specific challenges that lead to common mistakes. Understanding these mistakes is critical to ensure the form is completed accurately, minimizing the risk of compliance issues. Here are eight mistakes that often occur:
A closer look into these areas before submission can significantly decrease errors. Additionally, it’s advantageous to:
Ensuring each part of the Michigan 1353 form is filled out accurately is not just about compliance; it’s about affirming the business’s commitment to responsible and transparent operations within Michigan. A careful approach to this documentation can prevent complications with tax liabilities and legal challenges that could arise from inaccuracies or omissions.
When dealing with the complexity and nuances of Michigan tax laws, especially concerning the nexus with the state as outlined by the Michigan 1353 form, businesses and individuals may need to gather and submit additional forms and documents. These supplementary materials play a pivotal role in providing a comprehensive view of one’s tax obligations and compliance status in Michigan. Here’s a look at other documents that are often used along with the Michigan 1353 form.
Collectively, these documents not only support the information provided on the Michigan 1353 form but also paint a detailed picture of a business’s operations and its connection to Michigan. Whether you’re establishing a new enterprise or maintaining an existing one, understanding your nexus status and tax obligations in Michigan is essential to avoid penalties and ensure compliance. It’s advisable to consult with a tax professional or legal advisor to navigate these requirements effectively.
The Michigan 1353 form is similar to other tax-related documents that are used in various jurisdictions to determine a business's tax obligations based on its activities within a specific area. These forms generally gather information about the entity's presence, sales activities, and relationships that might establish a tax nexus, obliging the company to report and pay taxes in that jurisdiction.
One similar document is the California Form 1031, also known as the "Questionnaire for Determining Whether a Sales or Use Tax Permit Is Required." Much like the Michigan 1353 form, the California 1031 form is designed to ascertain whether a business's activities in the state warrant the collection of sales or use tax. Both documents request details on physical presence, such as property ownership, employee activities, and sales solicitation efforts within the state. Additionally, they inquire about the volume of sales to determine if the entity surpasses certain thresholds that mandate tax collection and remittance.
Another document with similarities is the New York ST-809 form, which is used by vendors to report and pay sales tax on taxable sales. While this form is more about the remittance of already assessed taxes rather than determining nexus, it shares the commonality of requiring detailed information on the nature of business activities conducted within the jurisdiction. The ST-809 requires vendors to list their sales, including the amount of sales tax collected, which reflects the necessity of understanding a company's in-state activities mirrored in the Michigan 1353 form's request for information on sales activities and physical presence to establish tax responsibilities.
Furthermore, the Texas Franchise Tax Public Information Report (Form 05-102) bears resemblance to Michigan's Nexus Questionnaire in its purpose of collecting data on a business's operations within the state to ascertain its tax obligations. Both forms delve into the structures of business presence, such as property ownership, office locations, and the conduct of business activities that might trigger a tax nexus. The emphasis on detailing the presence of employees or representatives and the nature of sales activities in the state underscores the focused approach of both forms in evaluating the extent of a business's involvement in the state's economic landscape.
When preparing the Michigan 1353 form, specific steps can ensure that the information you provide is accurate and compliant with state requirements. Here is a guide on what you should and shouldn't do:
Double-check the legal name of the business or individual to ensure it matches with federal and state records.
Provide accurate Federal Employer Identification Number (FEIN), Social Security Number (SSN), or TR Number as applicable.
Clearly describe your company’s business activities as defined under MCL 206.603(2) to avoid any ambiguity.
For questions regarding physical presence, list all relevant activities, ensuring you refer to examples provided in Table 1 and 2 for guidance.
Accurately indicate periods and numbers where requested, especially in sections dealing with property within Michigan, affiliates, and sales activities.
Understand the criteria for economic presence to accurately report Michigan sales, solicitation efforts, and gross receipts, referencing RAB documents as necessary.
Provide detailed information on unprotected activities that could establish nexus with the state, including the type of property sold and services performed.
Be thorough when indicating the company’s affiliations with units or members within a Unitary Business Group (UBG).
Ensure all tax information filed with Michigan is current and correct, including types of taxes filed and periods of activity.
Sign and date the questionnaire, certifying the accuracy of the information provided, and mail it to the correct address provided by the Michigan Department of Treasury.
Avoid leaving any sections blank that apply to your company’s activities in Michigan; unanswered questions could result in inaccurate nexus determination.
Do not guess on numbers or periods; verify all information before submission to prevent issues with your filing.
Resist the temptation to provide vague descriptions of business activities; specificity is crucial for accurate nexus evaluation.
Don’t overlook the “Additional Comments” sections; use these areas to clarify any non-standard business operations or anomalies.
Avoid submitting the form without reviewing it for errors or inconsistencies; every detail matters.
Do not ignore the importance of RAB (Revenue Administrative Bulletins) documents; these provide essential guidance on nexus standards and definitions.
Don’t guess on whether you meet the criteria for economic presence; review the thresholds carefully.
Avoid misunderstanding the use of the term “affiliates” within Michigan; ensure you accurately report any relationships that involve Michigan residents.
Do not neglect to indicate if your company falls under specific categories such as Insurance Company, as this requires continued completion of the form.
Avoid mailing the form to the incorrect address; double-check the recipient address, especially distinguishing between U.S. Mail and Courier Delivery Service options.
It's a common misconception that the Michigan 1351 form must be filed by all businesses operating within the state. However, this form is specifically designed for businesses to determine their nexus with Michigan, which relates to their tax obligations. Not every business will need to complete this form, only those potentially having a tax nexus with Michigan.
Another misunderstanding is that the form is only concerned with physical presence, like owning or leasing property in Michigan. While physical presence is a significant factor, the form also covers other situations that might create a tax nexus, such as sales and marketing activities, affiliations, and the presence of employees or agents acting on the company’s behalf within the state.
Many believe that completing the Michigan 1353 form automatically results in tax liability. This is not accurate. The purpose of the form is to help both the business and the Michigan Department of Treasury assess if a tax nexus exists. Just because a company completes this form doesn't mean they owe taxes; it's a step in determining tax responsibilities.
Some business owners think the form is only for large companies. In reality, any business, regardless of its size, that engages in activities possibly creating a nexus with Michigan should complete the form. This includes small businesses and sole proprietors.
There's a misconception that the information required is limited to current year activities. The form actually requires information for the last four completed tax years. This comprehensive history helps determine the longevity and consistency of a business's nexus with Michigan.
Others falsely believe that only companies with a physical storefront or office in Michigan need to worry about this form. The truth is, the form covers a wide range of activities beyond physical presence, including online sales, consulting services, and other forms of remote business conducted within the state.
Finally, there's a misunderstanding that the form is overly complex and difficult to complete. While it does require detailed information, the form is structured to guide businesses through the process of identifying their nexus with Michigan clearly and methodically. Moreover, the Michigan Department of Treasury provides additional resources and guidance for those who need assistance.
The Michigan 1353 form is pivotal for companies to declare their business nexus and activities within the state. Here are key takeaways regarding its completion and use:
Upon completion, the form should be mailed to the Michigan Department of Treasury, ensuring that companies operating within Michigan adhere to state tax regulations. It serves as a comprehensive tool for both the business and the state to determine tax obligations based on the extent of the company’s activities in Michigan.
State of Michigan 2022 Tax Forms - The form supports transparency in the mortgage process, detailing the responsibilities of both borrower and lender.
Wayne County Clerk Photos - Allows the removal of a non-biological parent from a birth record, contingent upon court order documentation.