Form 4908 - Corporate Income Tax Annual Return For Financial Institutions

Instructions for Form 4908

Corporate Income Tax (CIT) Annual Return for Financial Institutions

Purpose

Public Act 266 of 2013:

The Affiliated Group Election

To calculate a tax liability for a financial institution for CIT.

Public Act 266 of 2013 creates the affiliated group election,

Every taxpayer engaged in business activity in Michigan must

which allows a group of persons that satisfy the definition of

file an annual return.

“affiliated group,” (see below) to elect to be treated as a Unitary

Business Group (UBG) under the Corporate Income Tax

Special Instructions for Unitary Business Groups

(CIT) even if those persons do not satisfy the relationship test

All financial institution members of a Unitary Business Group

of MCL 208.611(6). For more information on the relationship

test see, the Michigan CIT Unitary Business Group Affiliates

(UBG) must file a combined Form 4908 for the group with

Excluded from the Return of Standard Taxpayers (Form 4896)

a Designated Member (DM) who must be the controlling

or go online to

member of the group, unless the controlling member does not

have nexus with Michigan. If that is the case, the controlling

The term “affiliated group” means that term as defined in

member may appoint a group member with nexus to serve as

section 1504 of the internal revenue code except that 1)

the DM.

the term includes all

United

States persons

that

are

corporations, insurance companies, or financial institutions,

UBGs: Complete the CIT Unitary Business Group Combined

other than a foreign operating entity, and 2) that are commonly

Filing Schedule for Financial Institutions (Form 4910) before

owned, directly or indirectly, by any member of such affiliated

beginning Form 4908.

group and other members of which more than 50 percent of

For more information on UBGs, see the CIT Forms and

the ownership interests with voting rights or ownership

Instructions for Financial Institutions (Form 4907), or go

interests that confer comparable rights to voting rights of

online to the Department of Treasury Web site at www.

the member is directly or indirectly owned by a common

michigan.gov/treasuryforms.

owner or owners.

NOTE: A UBG may include financial institutions, insurance

A person that satisfies the definition of affiliated group may

companies, and standard taxpayers. A group containing a

elect to have all persons included in that group treated

mixture of these three taxpayer types may be required to file

as a UBG for purposes of filing the CIT even if those persons

two or more returns to properly report the activities of the

do not satisfy the relationship test. The group of persons must

different taxpayer types within the group.

file the Michigan Corporate Income Tax Affiliated Group

Under Michigan Public Act 38 of 2011, Section 651(f), financial

Election to File as a Unitary Business Group (Form 5114) with

the Michigan Department of Treasury (Treasury) to make the

institution means any of the following:

election. This election is irrevocable and binding for the tax

i. A bank holding company, a national bank, a state chartered

year for which it is made and the subsequent nine tax years (10

bank, a state chartered savings bank, a federally chartered

total tax years).

savings association, or a federally chartered farm credit

Line-by-Line Instructions

system institution.

ii. Any entity, other than an entity subject to the tax imposed

Lines not listed are explained on the form.

under Chapter 12 (insurance company), who is directly

Dates must be entered in MM-DD-YYYY format.

or indirectly owned by an entity described in (i) and is a

member of the UBG.

For periods less than 12 months, see the “General Information

for Standard Taxpayers” in Form 4907.

iii. A UBG of entities described in (i) or (ii), or both.

Amended Returns: To amend a current or prior year

NOTE: Because the definition of financial institution for CIT

annual return, complete the CIT Amended Return for

purposes includes any entity (except an insurance company)

Financial Institutions (Form 4909) that is applicable for

that is owned by a bank or other entity (as described above)

that year, and attach a separate sheet explaining the reason

and is a member of a UBG with its owner, this may cause an

for the changes. Include an amended federal return or a

entity that is not commonly thought of as a financial institution

signed and dated Internal Revenue Service (IRS) audit

to be treated as one for return filing purposes. A UBG of

document, if applicable. Include all schedules filed with

financial institutions must file a combined return on this Form

the original return, even if not amending that schedule.

4908 that includes each member of the group that is a financial

Do not include a copy of the original return with

institution.

your amended return. Find detailed instructions on Form 4909.

Taxpayer Certification

Line 1: Unless a calendar year, enter the beginning and ending

A return filed by a UBG must be signed by an individual

dates (MM-DD-YYYY) that correspond to the taxable period

authorized to sign on behalf of the DM. Provide the telephone

as reported to the IRS.

number of that individual at the DM’s office.

Form 4908 - Corporate Income Tax Annual Return For Financial Institutions - 2014 Page 3

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