Michigan flow-through entity tax due dates run on a Michigan-specific calendar, not the federal pass-through calendar. For calendar-year filers, the annual FTE return (Form 5772) is due March 31, quarterly estimated payments are due April 15, June 15, September 15, and January 15, and the election to pay the tax must be filed by September 30 (the last day of the ninth month after year-end). Fiscal-year filers apply the same month-count rules to their own year-end.
Annual Return Deadline
The annual FTE return is due on the last day of the third month after the end of the tax year. For a calendar-year entity, that is March 31, not March 15. Many owners assume the deadline mirrors the federal Form 1065 or 1120-S date and file two weeks late as a result. Build your calendar around Michigan’s date.
The return is Form 5772, and it must be filed through Michigan Treasury Online (MTO) at mto.treasury.michigan.gov. Payments submitted outside MTO are not accepted.
Election Deadline
Paying the FTE tax is not automatic. The entity must affirmatively elect in, and for tax years starting on or after January 1, 2024, the election must be filed with the Michigan Department of Treasury on or before the last day of the ninth month after the end of the tax year. For calendar-year filers, that is September 30.
Once made, the election is irrevocable for the two subsequent tax years. You cannot opt out during that window. When the irrevocable period ends, the entity must file a new election to keep paying the FTE tax; without a new election, participation ends automatically.
For entities making a new election for tax years beginning on or after January 1, 2024, an election payment received after the original return due date will automatically trigger an extension.
Quarterly Estimated Payments
Quarterly estimated payments are required. The due dates mirror the federal schedule: April 15, June 15, September 15, and the following January 15 for calendar-year filers. Each installment should reflect a reasonable estimate of the entity’s annual tax liability, divided into roughly equal portions.
The tax rate is 4.25%, applied to the entity’s positive business income tax base after allocation or apportionment to Michigan. Estimate the annual liability against that base and divide across the four installments.
Extensions
A six-month extension of the annual return is available through MTO. For calendar-year filers, an approved extension pushes the filing deadline to September 30.
Two conditions have to be met, and both are strict:
- The extension request must be filed by the original due date of the return.
- You must pay your estimated remaining tax liability at the time you request the extension. If payment is not included, the request will be denied.
An extension of time to file is not an extension of time to pay. Interest and late-payment penalties continue to run on any balance still owed after the original due date, even if the filing extension is granted.
Penalties and Interest for Missing a Deadline
Michigan enforces the FTE tax through the penalty structure in MCL 205.24. If the entity fails to file its return or pay the tax by the due date, a penalty of 5% of the unpaid tax applies for the first two months the return or payment is late. After that, an additional 5% is added for each additional month the failure continues, up to a maximum of 25%.
Underpaying estimated taxes carries its own penalty. A complete failure to file estimated payments triggers a 25% penalty. Otherwise, the penalty is 10% of the underpaid amount per quarter, which stacks quickly across a year.
Interest accrues on any unpaid balance from the original due date until the tax is paid, at a rate set by the Michigan Department of Treasury, currently 1% above the prime rate.
How Filings and Payments Are Submitted
All FTE elections, returns, extension requests, and payments go through Michigan Treasury Online. Payments submitted outside MTO are not accepted and do not count as a valid election. If you are electing in for the first time, treat the MTO submission as the operative act, not a mailed check or a payment routed through another channel.
Member Deadlines for Claiming the Credit
Individual members claim a refundable Michigan credit equal to their allocable share of the FTE tax the entity paid. The credit is claimed on the member’s own Michigan return under the member’s normal filing deadline for Form MI-1040 or Form MI-1041.
Starting with tax year 2025, members must include Form 6072 with their Michigan return, and Form 6074 as well if they hold their interest through a tiered structure. The information needed to complete those forms comes from a statement the flow-through entity provides to each member, so the entity’s reporting timeline drives whether members can file on time. Because the credit is fully refundable, any excess over the member’s Michigan tax liability comes back as a refund.
Fiscal-Year Filers
The deadlines above are described using calendar-year dates because most filers use a calendar year, but each rule is written as a month-count from the entity’s year-end:
- Annual return: last day of the third month after year-end.
- Election: last day of the ninth month after year-end.
- Extension: six months beyond the original return due date, if requested and paid on time.
Fiscal-year entities apply these counts to their own year-end. The estimated-payment quarters follow the same schedule that applies under Michigan’s income tax.
Planning Around the Dates
Two mistakes account for most of the trouble entities run into. The first is treating the annual return like a March 15 federal pass-through deadline instead of Michigan’s March 31. The second is missing an estimated payment and triggering the 10%-per-quarter underpayment penalty, which compounds across the year. Keeping records that separately track Michigan-source income, FTE tax payments, and each member’s allocated credit makes both problems easier to avoid.
Because the election locks the entity in for two subsequent tax years, the September 30 election deadline is worth treating as a planning date rather than a filing date. Model the tax impact across at least a three-year window before submitting the election, particularly if income is volatile or member composition is likely to shift.