Michigan Extends Deadline for Disregarded Entities!! (again)
On Oct. 3, 2011, the Department of Treasury (Department) issued a revised notice regarding the Michigan Business Tax (MBT) filing obligations of business entities that are treated as disregarded entities for federal income tax purposes as a result of the decision in Kmart Michigan Property Services.
According to the notice, business entities that are disregarded for federal income tax purposes (such as single member limited liability companies (SMLLCs) and qualified Subchapter S subsidiaries (QSubs), among others), must now either file a separate MBT return or file as part of a unitary business group, if the unitary requirements are met. This requirement applies to all open tax years under the MBT, which took effect Jan. 1, 2008.
New Deadline - December 31, 2011 (NOT October 31, 2011)The revised notice extends the due date for filing delinquent and amended returns pursuant to this notice to Dec. 31, 2011 (formerly Oct. 31, 2011).
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
You can reach Brian at firstname.lastname@example.org.
Because state and local taxes are deceptively simple and endlessly complicated.