The Michigan 1353 form is a Nexus Questionnaire issued by the Michigan Department of Treasury. This form helps businesses determine their tax obligations in Michigan based on their activities within the state. If you need to fill out the Michigan 1353 form, click the button below.
The Michigan 1353 form, also known as the Nexus Questionnaire, plays a crucial role for businesses operating within the state. Issued by the Michigan Department of Treasury, this form is designed to determine a company's tax obligations based on its activities in Michigan. It gathers essential information, such as the legal name of the business, its Federal Employer Identification Number (FEIN), and the nature of its business activities. Companies must detail how they engage with customers in Michigan, including the presence of employees or agents conducting business on their behalf. The form also addresses property ownership, sales figures, and economic presence, which are key factors in establishing nexus. Additionally, it prompts businesses to report any affiliations with Michigan residents that may influence their tax responsibilities. By completing this questionnaire, companies can clarify their tax status and ensure compliance with Michigan's tax laws, ultimately avoiding potential penalties.
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.
Completing the Michigan 1353 form requires careful attention to detail. Gather all necessary information about your business, including its structure, activities, and any nexus with Michigan. Once you have the required details, follow these steps to fill out the form accurately.
After completing the form, review all entries for accuracy. Ensure that you sign and date the form before mailing it to the specified address. If your company has nexus with Michigan, further action may be required based on the information provided.
The Michigan 1353 form, also known as the Nexus Questionnaire, is a document issued by the Michigan Department of Treasury. It is required for businesses that may have a tax obligation in Michigan due to their activities within the state. This form helps the state determine whether a business has established a nexus, or sufficient presence, in Michigan, which would necessitate the payment of certain taxes.
Any business or individual that has received a Letter of Inquiry concerning Michigan taxes must complete the Michigan 1353 form. Additionally, businesses that engage in activities that could establish a nexus in Michigan—such as having employees or contractors in the state, owning property, or making sales that exceed certain thresholds—are also required to fill out this form.
The form requires detailed information about the business, including:
Completing the form accurately is crucial, as it directly impacts the assessment of the company’s tax obligations.
Failing to file the Michigan 1353 form when required can lead to significant consequences. The Michigan Department of Treasury may impose penalties and interest on unpaid taxes if it determines that a nexus exists and taxes are owed. Additionally, the company may face increased scrutiny from tax authorities, which could result in audits or further inquiries.
The information provided on the Michigan 1353 form is used to assess whether the business has a tax obligation in Michigan. The department evaluates various factors, such as the nature of the business activities, the presence of employees or property in the state, and sales figures. This assessment helps ensure compliance with state tax laws and determines the appropriate tax liabilities.
If questions arise while completing the Michigan 1353 form, it is advisable to reach out directly to the Michigan Department of Treasury. They can provide guidance and clarification on specific sections of the form. Additionally, consulting with a tax professional who is familiar with Michigan tax laws can also be beneficial, especially for businesses with complex situations.
Once completed, the Michigan 1353 form should be mailed to the address specified on the last page of the form. For U.S. Mail, including certified or registered mail, the address is:
Michigan Department of Treasury Discovery and Tax Enforcement Division PO Box 30140 Lansing, MI 48909
For courier delivery, the address is:
Michigan Department of Treasury Discovery and Tax Enforcement Division 7285 Parsons Drive Dimondale, MI 48821
Incomplete Business Information: Failing to provide the full legal name of the business or individual can lead to delays or rejections.
Incorrect Federal Identification Number: Entering the wrong Federal Employer Identification Number (FEIN), Social Security Number (SSN), or TR Number can cause issues with processing the form.
Missing Reference Number: If your company received a Letter of Inquiry, not including the reference number can lead to confusion and further inquiries.
Improper Description of Business Activity: Not accurately describing the company's business activities as defined under Michigan law can lead to misunderstandings about tax obligations.
Failure to Check All Applicable Boxes: Not checking all relevant boxes regarding physical presence and business activities may result in an incomplete assessment of nexus.
Incorrect Reporting of Days Conducted Business: Providing inaccurate counts of days when business activities occurred in Michigan can misrepresent the company's presence.
Missing Property Information: Failing to report any property owned, rented, or leased in Michigan can lead to potential tax liabilities.
Neglecting to Provide Affiliate Details: Not mentioning agreements with Michigan residents for referrals can overlook important aspects of the company's operations.
Omitting Signature and Date: Forgetting to sign and date the form can lead to automatic rejection or delays in processing.
The Michigan 1353 form, known as the Nexus Questionnaire, is essential for businesses operating in Michigan to determine their tax obligations. Along with this form, several other documents and forms may be required to provide a comprehensive understanding of a company's tax situation. Below is a list of six commonly used forms and documents that often accompany the Michigan 1353 form.
Understanding these forms and their purposes can help businesses navigate their tax obligations in Michigan more effectively. Proper documentation and timely filings are essential to avoid penalties and ensure compliance with state regulations.
The Michigan Nexus Questionnaire (Form 1353) is similar to the California Form BOE-401-A, which is used to determine a business's sales and use tax obligations in California. Both forms require businesses to provide information about their activities within the respective states. They ask for details on how the business operates, including sales methods and physical presence. Just like the Michigan form, the California form assesses whether a business has established nexus, which is crucial for tax liability. Both documents serve as a means for state tax authorities to collect necessary information to ensure compliance with tax laws.
Another document comparable to the Michigan 1353 form is the New York State ST-120, which is a sales tax exemption certificate. While the ST-120 focuses on claiming sales tax exemptions, it similarly requires businesses to disclose their operations within New York. Both forms emphasize the importance of understanding how a business engages with customers and the state. The ST-120, like the Michigan Nexus Questionnaire, helps determine the tax responsibilities of a business based on its activities and presence in the state.
The Texas Franchise Tax Application (Form 05-102) is another document that shares similarities with the Michigan 1353 form. This Texas form assesses a business's tax obligations based on its operations within the state. Both forms require businesses to outline their activities and any presence they have in the state. They also collect information about the business structure and financial performance. The goal of both documents is to ensure that businesses are accurately reporting their tax obligations based on their nexus status.
In addition, the Florida Department of Revenue’s DR-1 form is akin to the Michigan Nexus Questionnaire. This form is used for registering a business for sales tax in Florida and requires similar information regarding business activities and presence. Both forms aim to establish whether a business has sufficient nexus to warrant tax obligations in their respective states. They both require a clear description of the business's operations, sales methods, and any physical presence, helping tax authorities determine compliance with state tax laws.
Lastly, the Illinois Form CRT-1 is comparable to the Michigan 1353 form as it also assesses nexus for tax purposes. This form is used to determine whether a business has a tax obligation in Illinois based on its activities. Both forms require businesses to disclose their operational details, including how they sell products and services within the state. They serve as tools for tax authorities to gather necessary information for ensuring that businesses are meeting their tax responsibilities according to their nexus status.
When filling out the Michigan 1353 form, it’s essential to approach the process with care. Here are five things you should and shouldn't do:
Understanding the Michigan 1353 form can be challenging due to various misconceptions. Here are six common misunderstandings about this important document:
This form is applicable to businesses of all sizes. Whether you run a small local shop or a large corporation, if you conduct business in Michigan, you may need to complete this form.
Filling out the Michigan 1353 form does not automatically mean you owe taxes. It is a questionnaire to determine if your business has a tax obligation in Michigan based on your activities.
Even if your business is based outside Michigan, you may still need to file if you have economic presence or engage in certain activities within the state.
The Michigan 1353 form is relevant for various taxes, including corporate income tax and use tax. It assesses all types of nexus, not just sales tax.
If your business engages in activities that could establish nexus, you still need to file the form, even if you believe you have no taxable sales.
The Michigan 1353 form may need to be filed annually or whenever there are significant changes in your business activities. Regular updates ensure compliance with Michigan tax laws.
When filling out and using the Michigan 1353 form, keep these key points in mind:
Completing the Michigan 1353 form accurately is crucial for compliance with state tax regulations. Take your time to ensure all information is correct and complete.