In my blog dated August 2, 2012, I discussed combined unitary apportionment and Michigan’s Personal Income Tax. In the blog, I mentioned an appeal where the court upheld the concept of unitary apportionment in FORREST L. PRESTON, Plaintiff-Appellee, vs. DEPARTMENT OF TREASURY, Defendant-Appellant and the Estate of THOMAS M. WHEELER and PATSY WHEELER, Petitioners-Appellees vs. DEPARTMENT OF TREASURY, Respondent-Appellant.
Tags: Michigan State and Local Tax (SALT), State and Local Tax, Corporate Income Tax, Ron Kaley, Michigan Single Business Tax, flow-through entity withholding, Michigan Business Tax, Individual Income Tax, Michigan
Included in this blog is Michgan Department of Treasury, "FAQ U57". You will find this FAQ helpful as you start preparing your client's final unitary MBT return(s). The FAQ is not what I expected, but I think it is appropriate and helpful.
The governor's pen was busy in December. Several bills from Michigan's House of Representatives and Senate were signed within the last week affecting Michigan's Corporate Income Tax, Individual Income Tax, Single Business Tax, and Michigan Business Tax. I will cover the amendments over the next few blogs. Senate bills 368 and 369, concerning the Single Business tax, and "Disregarded Entities" under the Michigan Business tax will be covered separately. Click on the bill's name to access that specific bill on www.legislature.mi.gov.
Well, it seems like we have been here before... the MBT disregarded entity (DRE) fix is not yet a reality and as a result, the Michigan Department of Treasury has issued its third revision to the "Notice to Taxpayers Regarding Federally Disregarded Entities and the Michigan Business Tax".
Now that most MBT taxpayers are entering into their last quarter of taxation under the Michigan Business Tax Act, they need to think about some final planning considerations. The points discussed below may impact a taxpayer’s final filing under the MBT or their future filings under the new Corporate Income Tax Act.
You may remember the deferred income tax adjustment was one of the many confusing issues with the MBT. The MBT is considered an income tax, whereas the SBT was not considered an income tax. This change in taxation required many companies to book a deferred tax adjustment (often times a liability) for the MBT starting with the first period after July 12, 2007 (date of enactment).