Michigan ~ Corporate Income Tax: “Affiliated Groups” Allowed to File Combined Returns

Applicable to tax years that begin after 2012, “affiliated groups” are allowed to elect to file combined returns under the Michigan corporate income tax law. In general, the term “affiliated group” is defined as it is in IRC §1504, except that it includes all United States persons that are corporations, insurance companies, or financial institutions (other than a foreign operating entity) that are commonly owned, directly or indirectly, by any member of the affiliated group and other members of the group of which more than 50% of the ownership interest with voting rights or ownership interests that confer comparable rights is directly or indirectly owned by a common owner or owners. A taxpayer that is part of an affiliated group is allowed to elect to have all members of the affiliated group treated as a unitary business group. This group then files a combined return for 10 years, with the option to renew the election once for another 10 years. If the election renewal is not made immediately, then the election is not allowed in any of the next three tax years. The election is irrevocable and remains in effect for the time during which ownership requirements are met irrespective of whether the federal consolidated group to which the unitary business group belongs stops filing a federal consolidated return or whether the common parent changes due to a reverse acquisition or an acquisition by a related person. The definition of “unitary business group” is revised to include an affiliated group that makes the election to file as a unitary business group.

Act 266 (S.B. 367), Laws 2013, applicable as noted; Press Release, Gov. Rick Snyder, December 30, 2013

 

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Wolters Kluwer Tax and Accounting

Wolters Kluwer Tax and Accounting is a leading provider of software solutions and local expertise that helps tax, accounting, and audit professionals research and navigate complex regulations, comply with legislation, manage their businesses and advise clients with speed, accuracy and efficiency. Wolters Kluwer Tax and Accounting is part of Wolters Kluwer N.V. (AEX: WKL), a global leader in information services and solutions for professionals in the health, tax and accounting, risk and compliance, finance and legal sectors. We help our customers make critical decisions every day by providing expert solutions that combine deep domain knowledge with specialized technology and services. Wolters Kluwer reported 2016 annual revenues of €4.3 billion. The company, headquartered in Alphen aan den Rijn, the Netherlands, serves customers in over 180 countries, maintains operations in over 40 countries and employs 19,000 people worldwide. Wolters Kluwer shares are listed on Euronext Amsterdam (WKL) and are included in the AEX and Euronext 100 indices. Wolters Kluwer has a sponsored Level 1 American Depositary Receipt program. The ADRs are traded on the over-the-counter market in the U.S. (WTKWY).

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