Michigan and Disregarded Entities - The Wait is Over!!! | AccountingWEB

Michigan and Disregarded Entities - The Wait is Over!!!

Disregarded entities can stop waiting, and can now officially NOT FILE separate MBT returns in Michigan.

As I stated in an earlier post in November, Michigan had delayed the deadline once again in the hopes that legislation would be passed to resolve and remove this filing requirement.  Well, Michigan has done it and passed SB 369 on December 14, 2011.According to SB 369, a person that is a disregarded entity for federal income tax purposes under the Internal Revenue Code that prior to January 1, 2012 in an originally filed return was treated as a person separate from its owner or prior to December 1, 2011 in an amended return was treated as a person separate from its owner under this Act for a tax year that begins after December 31, 2007, is not required to file an amended return with its owner as a disregarded entity.

A person that is a disregarded entity for federal income tax purposes under the Internal Revenue Code that prior to January 1, 2012 in an originally filed return was treated as a person separate from its owner or prior to December 1, 2011 in an amended return was treated as a person separate from its owner under this Act for its first tax year that begins after December 31, 2009, may be treated as a person separate from its owner under this Act for its tax year that begins after December 31, 2010 and ends before January 1, 2012.

Click on SB 369 for the details.

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Brian Strahle is the owner of LEVERAGE SALT, LLC where he provides state and local tax technical services to accounting firms, law firms and tax research organizations across the United States.  He also writes a weekly column in Tax Analysts State Tax Notes entitled, "The SALT Effect."  For more info, visit his website: www.leveragestateandlocaltax.com

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