The Michigan Department of Treasury Form 5156 is a Request for Tax Clearance Application that businesses must complete when selling or closing their operations in Michigan. This form serves to ensure that all tax obligations are met before a business can transfer ownership or cease operations. For those needing to fill out this form, click the button below to get started.
The Michigan 5156 form, officially titled the Request for Tax Clearance Application, serves a crucial role for businesses in various stages of operation, particularly during transitions such as sales or closures. Issued under the authority of Public Act 228 of 1975, this form is essential for any business entity looking to secure a tax clearance certificate. The form is divided into several parts, each tailored to specific scenarios. For instance, those selling their business or assets need only complete Parts 1 and 4, while corporations closing their operations must fill out Parts 1, 2, and 4. Essential information required includes the current business name, Federal Employer Identification Number (FEIN), and details regarding the sale or discontinuation of business activities. Additionally, the form mandates a certification and authorization section to ensure the accuracy of the information provided and to allow for the disclosure of tax-related information. Completing the Michigan 5156 form accurately is vital, as it facilitates the release of any escrowed funds and ensures compliance with state tax obligations.
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
If yes, list the name it is doing business as
Will you continue business activity after clearance under this FEIN or TR number?
If no, have you submitted a Notice of Change or Discontinuance (Form 163)?
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?
If yes, how much is held in escrow?
PuRChAseR InfoRmATIon
Purchaser Business Name
Purchaser FEIN
Purchaser Address
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
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
Fax Number
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.
Once the Michigan 5156 form is completed, it should be submitted to the Michigan Department of Treasury for processing. This form is essential for obtaining a tax clearance certificate, which may be required for various business transactions, including selling or closing a business. Ensure all necessary parts are filled out accurately before submission.
Michigan Department of Treasury Tax Clearance Section P.O. Box 30778 Lansing, MI 48909
The Michigan 5156 form, also known as the Request for Tax Clearance Application, is used to request a tax clearance certificate from the Michigan Department of Treasury. This certificate is necessary when a business is being sold, closing down, or has completed a sale of business assets. It ensures that all tax liabilities have been settled before the transfer of ownership or dissolution occurs.
Any business entity that is selling its business or assets, closing its operations, or has already sold its business must complete the form. The specific parts of the form to be filled out depend on the circumstances:
Part 1 collects general information about the business, including:
All fields in this section must be completed accurately.
If your business is closing and is registered as a corporation with the Michigan Department of Licensing and Regulatory Affairs (LARA), you will need to complete Part 1, Part 2, and Part 4 of the form. Ensure that the date of discontinuance matches the date reported on the Form 163 Notice of Change or Discontinuance.
Once the Michigan 5156 form is submitted, the Department of Treasury will review the application to ensure all tax liabilities have been paid. If everything is in order, a tax clearance certificate will be issued. This certificate is necessary for the release of any funds held in escrow related to the sale of the business or its assets.
If your corporation had no tax liability or was not required to register with the Michigan Department of Treasury, you must provide a detailed explanation in the application. Attach any necessary documentation to support your claim. This could include the last four years of Federal Business Tax Returns if applicable.
The completed form should be mailed to the Michigan Department of Treasury, Tax Clearance Section, at the following address:
P.O. Box 30778 Lansing, MI 48909
For further assistance, you can contact them at (517) 636-5260, Monday through Friday, from 8 a.m. to 5 p.m.
Failing to complete all required sections based on the reason for the request. Ensure you fill out the appropriate parts as specified in the instructions.
Using a P.O. Box for the business address. The form requires a physical address, not a P.O. Box.
Not including the correct Federal Employer Identification Number (FEIN) or Treasury-issued account number. This number is essential for processing your request.
Neglecting to attach Form 163 when necessary. If your business has ceased operations, this form must be submitted with your application.
Providing inaccurate or incomplete information in the Corporate Dissolution or Withdrawal section. Ensure all dates and explanations are accurate and supported by documentation.
Failing to check the appropriate boxes regarding business operations and trade names. This information is crucial for the processing of your request.
Not signing or dating the certification section. This section must be completed by an authorized individual.
Overlooking the requirement to provide a detailed explanation if the business had no tax liability. This explanation must be included if applicable.
Not submitting the form within the required time frame. Delays can affect the processing of your request for tax clearance.
The Michigan 5156 form is often accompanied by several other documents that help facilitate the process of obtaining a tax clearance. Each document serves a specific purpose in ensuring compliance with state regulations. Below is a list of commonly used forms and documents alongside the Michigan 5156 form.
Each of these documents plays a crucial role in the tax clearance process. Properly completing and submitting them can help ensure a smooth transition during the sale or closure of a business.
The Michigan 5156 form is similar to the IRS Form 4506-T, Request for Transcript of Tax Return. Both documents are used to obtain tax-related information. The IRS form allows individuals or businesses to request a transcript of their tax returns, which can be necessary for various reasons, such as loan applications or verifying income. Similarly, the Michigan 5156 form is a request for tax clearance, often needed when selling or closing a business. Both forms require specific identification details, including taxpayer identification numbers, and serve to ensure that all tax obligations are met before proceeding with significant financial transactions.
Another document similar to the Michigan 5156 form is the IRS Form 8821, Tax Information Authorization. This form allows taxpayers to authorize a third party to receive their tax information from the IRS. Like the Michigan 5156, it includes a section for designating an authorized representative. Both forms aim to facilitate communication regarding tax matters, ensuring that necessary information is shared with the appropriate parties while maintaining compliance with tax regulations.
The Michigan 5156 form also resembles the Michigan Form 163, Notice of Change or Discontinuance. This form is used when a business is discontinuing operations or changing its structure. Both forms require detailed information about the business and its operations. While Form 5156 focuses on obtaining a tax clearance certificate, Form 163 is about officially notifying the state of changes. Completing both forms accurately is crucial for compliance with state regulations.
Similarly, the IRS Form 1065, U.S. Return of Partnership Income, shares a connection with the Michigan 5156 form. Partnerships must file Form 1065 to report income, deductions, and other tax information. When a partnership is sold or dissolved, a tax clearance may be needed, making the 5156 form relevant. Both forms require detailed financial information and ensure that all tax liabilities are addressed before any changes in business structure occur.
The Michigan 5156 form can also be compared to the IRS Form 941, Employer's Quarterly Federal Tax Return. Employers use Form 941 to report income taxes, Social Security tax, and Medicare tax withheld from employee paychecks. When a business is sold or closed, ensuring that all payroll taxes are settled is essential. Thus, both forms play a role in confirming that tax responsibilities are fulfilled before significant business changes.
Another similar document is the Michigan Corporate Income Tax (CIT) Form 4891. This form is used to report corporate income tax for businesses operating in Michigan. When selling or closing a business, obtaining tax clearance through Form 5156 ensures that all corporate tax obligations have been met. Both forms require accurate reporting of financial information and compliance with tax laws.
The Michigan 5156 form is also akin to the IRS Form 1040, U.S. Individual Income Tax Return, for sole proprietors. Sole proprietors file Form 1040 to report their income and pay taxes. If a sole proprietor decides to sell their business, they may need to obtain a tax clearance using Form 5156. Both forms emphasize the importance of fulfilling tax obligations before any business transitions.
Additionally, the Michigan Sales Tax License Application serves a similar purpose in ensuring compliance with state tax laws. Businesses must apply for a sales tax license to collect sales tax on goods sold. When selling a business, obtaining tax clearance through Form 5156 confirms that all sales tax obligations have been met. Both documents are essential for businesses to operate legally and responsibly within Michigan.
Finally, the IRS Form 941-X, Adjusted Employer's QUARTERLY Federal Tax Return or Claim for Refund, is similar to the Michigan 5156 form in that it addresses tax adjustments. If a business discovers errors in its payroll tax filings, it can use Form 941-X to correct those mistakes. When closing or selling a business, ensuring that all tax filings are accurate is crucial, making both forms relevant in the context of tax compliance.
When filling out the Michigan 5156 form, attention to detail is crucial. Here are eight important do's and don'ts to keep in mind:
Following these guidelines will help ensure a smooth process in obtaining your tax clearance certificate.
Misconceptions about the Michigan 5156 form can lead to confusion and delays in the tax clearance process. Here are nine common misconceptions and their clarifications:
When filling out and using the Michigan 5156 form, there are several important points to keep in mind. Here are key takeaways to ensure a smooth process:
Following these guidelines will help streamline the process of obtaining a tax clearance certificate in Michigan.