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Blank Michigan 1353 Form

The Michigan 1353 form is a Nexus Questionnaire issued by the Michigan Department of Treasury. This form is essential for businesses to determine their tax obligations in Michigan based on their activities within the state. By completing this form, companies can clarify their presence and operations, ensuring compliance with state tax laws.

Outline

The Michigan 1353 form, officially titled the Nexus Questionnaire, serves as a critical tool for businesses operating within or engaging with the state of Michigan. Issued by the Michigan Department of Treasury under Public Act 228 of 1975, this form is designed to assess a company's tax obligations based on its business activities within the state. Key components of the form include the legal name of the business, its Federal Employer Identification Number (FEIN), and a detailed description of the company's business activities as defined under Michigan law. Businesses must outline how they sell products or services in Michigan, noting any physical presence or economic presence that may establish nexus. The form prompts companies to disclose information about employees, agents, or representatives conducting business activities in Michigan, as well as any property owned or used within the state. Additionally, it requires businesses to report on sales thresholds and the nature of their activities, helping to determine tax liabilities. By gathering this information, the Michigan 1353 form plays a pivotal role in ensuring compliance with state tax laws and clarifying the tax responsibilities of both resident and non-resident businesses.

Sample - Michigan 1353 Form

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.

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 (

)

Yr (

)

Yr (

)

Yr (

)

Check (X) the number of days

1 day

during the tax year

2 or more days

Describe nature of activity:

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):

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).

Enter period(s):

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.

Enter period(s):

The total cumulative gross receipts from sales of tangible personal property to Michigan purchasers exceeded $50,000 in a 12-month

period.

Enter period(s):

Economic Presence

Check all that apply.

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”)

Enter calendar year(s):

Has gross receipts of $350,000 or more per year sourced to Michigan. (Refer to RAB 2014-5 for CIT Nexus Standards)

Enter calendar year(s):

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)

Enter period(s):

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

Enter period(s):

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?

Yes, enter period(s):

14. The company has filed the following Michigan taxes:
	None	Sales Tax
	None	Sales Tax
	Corporate Income Tax	Use Tax on Sales/Rentals
	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)

Michigan Department of Treasury

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

Michigan Department of Treasury

Discovery and Tax Enforcement Division

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.

Click for PDF

Form Information

Fact Name	Description
Governing Law	The Michigan 1353 form is issued under the authority of Public Act 228 of 1975.
Purpose	This form serves as a Nexus Questionnaire for businesses to report their business activities in Michigan.
Identification Requirements	Businesses must provide their legal name, Federal Employer Identification Number (FEIN), and address details.
Activity Disclosure	Companies must describe their business activities and how they sell products or services in Michigan.
Tax Implications	If certain criteria are met, businesses may be liable for Michigan taxes, necessitating continued completion of the form.

Detailed Guide for Filling Out Michigan 1353

Filling out the Michigan 1353 form requires careful attention to detail. Each section collects specific information about your business activities, especially regarding your presence and operations in Michigan. Once the form is completed, it should be mailed to the appropriate address provided at the end of the document.

Legal Name: Enter the legal name of your business or individual as it appears on official documents.
Federal Employer Identification Number: Input your FEIN, SSN, or TR Number.
DBA: If applicable, provide your "Doing Business As" name.
Address: Fill in your street address, city, state, and ZIP code.
Reference Number: If you received a Letter of Inquiry regarding Michigan Taxes, enter the reference number.
Business Activity: Describe your company’s business activity as defined under MCL 206.603(2).
Sales Method: Explain how your company sells its products or services in Michigan.
Physical Presence: Check all applicable options regarding employees or representatives conducting business in Michigan.
Days of Activity: Indicate the number of days business activities were conducted in Michigan during the tax year.
Tax Years: List the last four completed tax years.
Property in Michigan: Enter details about any tangible personal property or real property owned, rented, or leased in Michigan.
Affiliates: Describe any agreements with Michigan residents that resulted in referrals and provide relevant periods.
Economic Presence: Check all applicable options regarding sales and transactions in Michigan.
Ownership Interest: Indicate if your company has an ownership interest in a flow-through entity with nexus in Michigan.
Business Activities: Check all applicable activities your company engages in.
Solicitation Activities: List any solicitation activities conducted by your employees or agents in Michigan.
Unprotected Activities: Specify any unprotected activities conducted within Michigan.
Purchase Orders: Indicate whether your employees approve or accept purchase orders in Michigan.
Filed Taxes: Check any Michigan taxes your company has filed.
State of Incorporation: Provide the state where your company was incorporated or formed.
State of Domicile: Indicate the state where your company is domiciled.
Incorporation Date: Enter the date your company was incorporated or formed.
Business Start Date: Provide the date your business began operations, if different from incorporation.
Organization Type: Select your organization type from the provided options.
Federal Tax Return Type: Check the type of federal tax return your company files.
UBG Member: If applicable, enter the Designated Member FEIN.
Certification: Sign and date the form, confirming the information is true and complete.
Preparer Information: If someone else prepared the form, include their name, title, and contact information.
Mailing Instructions: Send the completed form to the address specified for U.S. mail or courier delivery.

Obtain Answers on Michigan 1353

What is the Michigan 1353 form?

The Michigan 1353 form, also known as the Nexus Questionnaire, is a document issued by the Michigan Department of Treasury. It is designed to gather information from businesses to determine their tax obligations in Michigan. Companies must complete this form if they have received a Letter of Inquiry regarding Michigan taxes or if they meet certain criteria indicating a presence in the state.
Who needs to fill out the Michigan 1353 form?

Any business that conducts activities in Michigan that may create a tax obligation should consider completing the Michigan 1353 form. This includes businesses with physical presence, employees, or significant economic activity in the state. If your company has received a Letter of Inquiry from the Michigan Department of Treasury, you are required to fill out this form.
What information is required on the form?

The form requires various details about your business, including:
- Legal name and address of the business
- Federal Employer Identification Number (FEIN) or Social Security Number (SSN)
- A description of your business activities
- Information about sales and business activities conducted in Michigan
- Details about property owned or used in Michigan
- Affiliates and economic presence in the state
What happens if I do not submit the Michigan 1353 form?

Failing to submit the Michigan 1353 form when required may result in penalties or additional scrutiny from the Michigan Department of Treasury. It is important to comply with the request to avoid potential legal and financial repercussions.
How is the information on the Michigan 1353 form used?

The Michigan Department of Treasury uses the information provided on the form to assess whether your business has a tax obligation in the state. This includes determining nexus, which is the connection that a business has with Michigan that triggers tax responsibilities. The data helps the state enforce tax laws and ensure compliance.
Where do I send the completed Michigan 1353 form?

Once you have completed the Michigan 1353 form, it should be mailed to the Michigan Department of Treasury. The address is:

Michigan Department of Treasury
Discovery and Tax Enforcement Division
PO Box 30140
Lansing, MI 48909
Can I get help with filling out the Michigan 1353 form?

If you need assistance, consider reaching out to a tax professional or an attorney who specializes in tax law. They can help you understand the requirements and ensure that your form is completed accurately. Additionally, the Michigan Department of Treasury may provide resources or guidance on their website.

Common mistakes

Filling out the Michigan 1353 form can be a straightforward process, but many individuals and businesses make common mistakes that can lead to delays or complications. One frequent error is not providing the correct Federal Employer Identification Number (FEIN) or Social Security Number (SSN). This number is crucial for identifying your business in the state’s tax system. If the number is incorrect, it can cause significant issues, including the rejection of your application or inquiries from the state.

Another common mistake involves skipping the sections that require detailed descriptions of business activities. For example, when describing how a company sells its products or services in Michigan, vague responses can lead to misunderstandings. It’s important to be specific and clear about the nature of your business operations within the state. This clarity helps the tax authorities assess your nexus accurately.

Some individuals fail to check all applicable boxes in the physical and economic presence sections. Each checkbox represents a significant aspect of your business operations in Michigan. Neglecting to mark relevant activities can create an incomplete picture of your business’s connection to the state, potentially leading to tax liabilities that could have been avoided.

People also often overlook the importance of providing accurate dates in the tax year sections. Entering the wrong years or failing to list all required periods can result in confusion and additional requests for information. It’s vital to ensure that all dates are correct and that they reflect the actual time frames during which your business operated in Michigan.

Lastly, many applicants forget to review the entire form before submission. This oversight can lead to minor errors that may seem insignificant but can cause major complications. Taking the time to double-check your entries, ensuring all required fields are filled out, and confirming that your signature is present can save you time and trouble in the long run.

Documents used along the form

The Michigan 1353 form, also known as the Nexus Questionnaire, is essential for businesses operating in Michigan to determine their tax obligations. Along with this form, several other documents may be required or useful in the process of establishing nexus and ensuring compliance with state tax regulations. Below is a list of related forms and documents that are often used in conjunction with the Michigan 1353 form.

Michigan Corporate Income Tax (CIT) Return (Form 4891) - This form is filed by corporations to report their income and calculate the corporate income tax owed to the state. It is essential for businesses that meet the nexus criteria and have taxable income in Michigan.
Michigan Sales and Use Tax Return (Form 5080) - Businesses that sell tangible personal property or taxable services in Michigan must file this return to report and remit sales tax collected from customers. It is crucial for maintaining compliance with state sales tax laws.
Michigan Withholding Tax Annual Return (Form 941) - Employers in Michigan must file this form to report state income tax withheld from employee wages. This document is necessary for businesses that have employees working in the state.
Business Registration Form (Form 518) - New businesses in Michigan must complete this form to register their business with the state. It includes essential information about the business structure and ownership, which is vital for tax identification purposes.
Certificate of Good Standing - This document is often requested by lenders or partners to confirm that a business is legally registered and compliant with state regulations. It serves as proof that the business is authorized to operate in Michigan.
Michigan Individual Income Tax Return (Form MI-1040) - If the business is structured as a pass-through entity, owners may need to file this form to report their share of the business income on their personal tax returns. This is important for individual owners to fulfill their tax obligations.

Understanding and preparing these documents alongside the Michigan 1353 form can help ensure that businesses comply with state tax laws and regulations. Proper documentation not only facilitates smoother operations but also minimizes the risk of penalties or audits from tax authorities.

Similar forms

The Michigan 1353 form is a Nexus Questionnaire used to determine whether a business has established a tax presence in the state of Michigan. Several other documents serve similar purposes in different jurisdictions or contexts. Below is a list of seven documents that share similarities with the Michigan 1353 form:

California Form 568: This form is used for Limited Liability Companies (LLCs) in California. Like the Michigan 1353, it assesses the business's activities and nexus within the state, requiring detailed information about income and business operations.
New York State Form CT-3: This is the General Business Corporation Franchise Tax Return. It requires businesses to disclose their activities and presence in New York, paralleling the Michigan 1353's focus on determining tax obligations based on business activities.
Texas Franchise Tax Application: Businesses in Texas must file this application to assess their franchise tax liability. Similar to the Michigan 1353, it evaluates the nature and extent of business activities within the state to establish tax nexus.
Illinois Form IL-1120: This is the Corporation Income and Replacement Tax Return. It requires corporations to report their income and activities in Illinois, akin to how the Michigan 1353 assesses business presence and activity in Michigan.
Florida Form F-1120: This form is used for corporate income tax in Florida. It gathers information about business operations and nexus, similar to the inquiries made in the Michigan 1353 form regarding business activities.
Ohio Commercial Activity Tax (CAT) Registration: This registration is required for businesses engaged in commercial activities in Ohio. It shares the same goal of determining tax liability based on the level of business activity within the state, as seen in the Michigan 1353.
Pennsylvania Corporate Tax Report (RCT-101): This report is used by corporations to determine their tax obligations in Pennsylvania. It collects information about business activities and presence, paralleling the focus of the Michigan 1353 on nexus determination.

Dos and Don'ts

When filling out the Michigan 1353 form, it is essential to follow specific guidelines to ensure accuracy and compliance. Below is a list of things you should and should not do.

Do provide accurate and complete information regarding your business activities.
Do include your Federal Employer Identification Number (FEIN) or Social Security Number (SSN) as required.
Do check all applicable boxes to indicate your business activities in Michigan.
Do describe your company’s business activity clearly and concisely.
Do ensure that you sign and date the form before submission.
Don't leave any required fields blank; all questions must be answered.
Don't provide misleading or false information, as this can lead to penalties.

By adhering to these guidelines, you can help facilitate a smoother process for your submission. Ensure that you take the time to review your answers before sending the form to avoid any potential issues.

Misconceptions

Understanding the Michigan 1353 form is crucial for businesses operating in or engaging with Michigan. However, several misconceptions can lead to confusion. Here are seven common misunderstandings:

Misconception 1: The form is only for businesses physically located in Michigan.

This is not true. The Michigan 1353 form is required for any business that has nexus with Michigan, which can include economic presence or sales activities conducted in the state, regardless of a physical location.

Misconception 2: Completing the form is optional.

In reality, if your business meets certain criteria outlined in the form, it is mandatory to complete and submit it. Failing to do so may result in penalties or tax liabilities.

Misconception 3: Only large companies need to worry about nexus.

Nexus can apply to businesses of all sizes. Even small businesses or sole proprietors can establish nexus through sales or other activities in Michigan.

Misconception 4: The form only assesses sales tax obligations.

The Michigan 1353 form is broader than just sales tax. It helps determine various tax obligations, including corporate income tax and use tax, based on the nature of business activities in the state.

Misconception 5: Once submitted, the form does not need to be updated.

Businesses should review and update their information regularly. Changes in business activities, ownership, or location can affect nexus status and may require a new submission.

Misconception 6: You can ignore the form if you don't have any taxable sales.

Even if a business does not have taxable sales, it may still need to file the form if it has any other nexus criteria, such as maintaining property or conducting business activities in Michigan.

Misconception 7: The form is straightforward and does not require professional help.

While the form may seem simple, the implications of nexus can be complex. Consulting with a tax professional can ensure accurate completion and compliance with Michigan tax laws.

Key takeaways

When filling out and using the Michigan 1353 form, there are several important points to keep in mind. This form is essential for businesses to determine their tax obligations in Michigan. Below are key takeaways to consider:

Understand the Purpose: The Michigan 1353 form, also known as the Nexus Questionnaire, helps the state assess whether your business has a tax obligation in Michigan.
Gather Necessary Information: Before starting, collect your business’s legal name, Federal Employer Identification Number (FEIN), and other identifying details. Accurate information is crucial.
Be Thorough: Each section of the form requires specific details about your business activities, including how you sell products or services in Michigan. Take your time to provide complete answers.
Check the Right Boxes: The form includes various checkboxes to indicate business activities and presence in Michigan. Ensure you check all that apply to your situation.
Document Days of Activity: If your employees or agents conducted business in Michigan, note the number of days this occurred. This information can impact your tax obligations.
Review Nexus Standards: Familiarize yourself with Michigan’s nexus standards, which determine tax responsibilities based on business activities and presence in the state.
Seek Guidance if Needed: If you’re unsure about any part of the form, consider consulting a tax professional or legal expert to ensure compliance.
Submit on Time: After completing the form, mail it to the appropriate address provided. Timely submission is essential to avoid penalties or issues with your tax status.

By keeping these takeaways in mind, you can navigate the Michigan 1353 form with greater confidence and clarity.