Individual Tax Advisory Group Meeting - Michigan Department of Treasury

Posted on Fri, Dec 07, 2012

The Individual Tax Advisory Group (ITAG) is a Treasury sponsored program where members of the MACPA and other organizations meet with Treasury.  Myself, Michael Bannasch and those from other organizations are meeting and discussing a number of issues surrounding Michigan’s individual income tax.  As part of MACPA's conversation with Treasury, Treasury has asked us (members of the MACPA)  a few very important questions, they are as follows:

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Tags: Michigan State and Local Tax (SALT), State and Local Tax, flow-through entity withholding, Individual Income Tax, Michigan

Michigan Business Tax, Allocation and Apportionment: Multistate Tax Compact 3-factor Formula

Posted on Wed, Dec 05, 2012

Affirming the lower court, the Michigan Court of Appeals held that a Michigan taxpayer was required to use the Michigan business tax (MBT) apportionment formula (100% sales) and that the taxpayer was not permitted to elect to use the Multistate Tax Compact’s apportionment formula (equally-weighted property, payroll, and sales). The taxpayer argued that the MBT apportionment formula was optional, and the Department of Treasury argued that the MBT apportionment formula was mandatory. The court noted that the MBT statute allowed taxpayers to request permission to use an alternate apportionment method so that unusual situations where the default formula caused distortion would not occur. However, the Compact allowed an election of right, presumably exercised in order to obtain a lower tax liability. Examining the statutory language, the court noted that the applicable provision (M.C.L. 208.1301) absolutely precluded any other apportionment formula except by petition.

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Tags: Michigan State and Local Tax (SALT), Tax, State and Local Tax, Ron Kaley, Michigan Business Tax

Michigan Supreme Court to Address the Unitary Business Principle and Combined Reporting of Apportionmet to the Personal Income Tax

Posted on Mon, Oct 15, 2012

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. 

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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

PERSONAL INCOME TAX—Unitary and Apportionment of Income

Posted on Thu, Aug 02, 2012

Michigan's Court of Appeals has recently issued three opinions:

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Tags: Accounting, Tax, State and Local Tax, Corporate Income Tax, Michigan Business Tax, Individual Income Tax, Michigan, Law

Michigan Income Tax and MBT Audit Issues

Posted on Thu, May 31, 2012

Ed Kisscorni and I are starting our next round of seminars offered through the MACPA. The title of our seminar is, "Michigan Income Tax and MBT Audit Issues". The seminar is designed to dig into amendments associated with the Michigan Income tax act. We will be discussing issues surrounding flow-through entity withholding, nexus, apportionment and unitary for the corporate income tax, along with how they may impact flow-through entity withholding. I have included a copy of the table of contents, and links directly to the MACPA's website to assist you in registering. The first seminar is Monday, June 4 in Sterling Heights and then Friday, June 29 in Traverse City. 

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Tags: State and Local Tax, Corporate Income Tax, Ron Kaley, flow-through entity withholding, Michigan Business Tax, Individual Income Tax

Michigan Tax Structure Reform and the Personal Property Tax

Posted on Wed, Apr 25, 2012

It’s been a while since I last blogged. The 2012 tax season has finally come to an end, but the Michigan tax re-structure, which took effect January 1, 2012, continues. As you have seen, a strong emphasis has been put on reform. I have received many questions surrounding changes to the individual tax structure, the new corporate income tax, unitary under the (CIT), tax base of a c-corp in a pass-through entity, and others. Most questions relate to withholding, who is required to withhold, when to withhold and how much.  What on earth does "Reasonably Expected to Accrue" mean in context of withholding? Most recent, several bills were introduced in the Michigan's legislature concerning Personal Property Tax (PPT) reform. You will find linked to this blog those bills.

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Tags: State and Local Tax, Corporate Income Tax, Ron Kaley, Personal Property Tax, Individual Income Tax

Michigan Corporate and Individual Income Tax Clean-up Bills - Part II

Posted on Wed, Jan 04, 2012

Continued from: Part I " The governor's pen was busy in December." Several bills from Michigan's House and Senate were signed within the last week affecting Michigan's Corporate Income Tax and Individual Income Tax.

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Tags: State and Local Tax, Corporate Income Tax, Ron Kaley, Michigan Business Tax, Individual Income Tax

Michigan Corporate and Individual Income Tax Clean-up Bills - Part I

Posted on Wed, Jan 04, 2012

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.

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Tags: State and Local Tax, Corporate Income Tax, Ron Kaley, Michigan Single Business Tax, Michigan Business Tax, Individual Income Tax

MI Supreme Court Upholds Taxation of Public Pensions and ...

Posted on Tue, Nov 22, 2011

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Tags: State and Local Tax, Corporate Income Tax, Ron Kaley, Michigan Single Business Tax, Michigan Business Tax, Individual Income Tax

Michigan Business Tax - Third Notice on Disregarded Entities

Posted on Fri, Nov 18, 2011

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".

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Tags: State and Local Tax, Corporate Income Tax, Ron Kaley, Michigan Single Business Tax, Michigan Business Tax