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and correspondence on a specific City Income Tax Withholding • If your return is filed with additional tax due, include penalty
Annual Reconciliation return, will not change unless the taxpayer and interest with your payment. Penalty is 1% of the tax due and
files a City of Detroit Notice of Change (Form 5439) with increases by an additional 1% per month or fraction thereof, to a
Treasury. maximum of 25%.
Date of Discontinuance: Enter the date, if applicable, the • Interest is charged daily using the average prime rate, plus 1
taxpayer discontinued its business. The discontinuance tax year percent. For current interest rates, visit www.michigan.gov/taxes.
entered must match the tax year of the form. REMINDER: Taxpayers must sign and date returns. Preparers
Example: A discontinuance date of 06/30/2022 must be entered must provide a Preparer Taxpayer Identification Number (PTIN)
on a 2022 return. A discontinuance date of 04/01/2021 must be or Social Security Number (SSN), as well as a business name,
entered on a 2021 return. business address and phone number.
Reason Code for Discontinuance: Enter the two-digit code that Mailing Address
best represents the reason for discontinuance from the table below.
Mail your Annual Reconciliation return to:
01 Business Closed Michigan Department of Treasury
02 Sale of Business City of Detroit
10 Other PO Box 30812
• If selecting “Other,” provide a brief explanation in the field “If Lansing MI 48909
Reason Code for Discontinuance is ‘Other,’ Explain.”
Reason code if amending: Using the table below, select the two- Make check payable to “State of Michigan — Detroit.” Write
digit code that best represents the reason for amending the return. the FEIN, tax year and “City WH” on the check. Do not staple
01 Increasing tax liability the check to the return.
02 Decreasing tax liability NOTE: Form 5321 is used to amend a previously filed annual
Incorrect information/figures reported on original return. To amend Form 5321, complete the return with the
03 corrected figures and place an “X” in the “Check if this is an
return
04 Original return was missing information/incomplete amended return” box located in the upper right hand corner of the
10 Other return. For completing the “Reason Code if amending” field, see
the line-by-line instructions.
• If selecting “Other,” provide a brief explanation of the reason in
the space provided.
IMPORTANT: When amending a return you MUST enter
a reason code AND place an “X” in the “Check if this is an
amended return” box located in the upper right of the return.
Line 1: Enter your total gross payroll and other compensation
subject to income tax withholding in the City of Detroit, for the
year.
Line 3: Enter the total City of Detroit income tax withheld for the
year.
Line 4: Enter the total City of Detroit income tax withheld that
was paid on your monthly or quarterly returns. Do not include
penalty and interest.
Line 5: If amending a return previously filed, enter any
overpayment received on the original return or previous amended
return.
Line 7: If amending a return previously filed, enter the amount
that was paid with your original return plus any additional tax that
was paid after the original return was filed. Do not include penalty
and interest paid with the original return.
Line 9: Refund. The taxpayer should not request a refund if they
overwithheld City of Detroit Income Tax from an employee and
the overage is reported on the employee’s W-2.
NOTE: A refund is allowed if the taxpayer reported an amount in
error (either a clerical error or data that conflicted with a correctly
prepared W-2) or incorrectly prepared a W-2 for an employee but
then re-issued a corrected W-2. If requesting a refund, include a
detailed written explanation.
Line 11 and Line 12: How to compute penalty and interest:
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