Forms 4907 To 4910 - Michigan Corporate Income Tax For Financial Institutions - 2014 Page 26
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282014 Supplemental Instructions
for Financial Institution Members in Unitary Business Groups (UBGs)
Before completing a combined return, UBGs should first
NOTE: These instructions for Unitary Business Groups
(UBGs) are meant to supplement general instructions and
complete Form 4896 and Form 4897 or Form 4910. These
form-specific instructions for financial institution taxpayers of
forms are used to gather data from each member included in
the combined filing schedule, and eliminate intercompany
the Corporate Income Tax (CIT), not to replace them.
transactions where applicable, to support the primary return.
Standard taxpayers and standard members refer to all
Insurance companies that are part of a UBG will each file
taxpayers or UBG members, respectively, other than financial
a separate Form 4905, but should be listed as an excluded
institutions or insurance companies. Standard members of a
affiliate with an incompatible tax base on Form 4896 or Form
UBG should see the “Supplemental Instructions for Standard
4910, as applicable.
Members in UBGs” section in the CIT Forms and Instructions
The Designated Member (DM)
for Financial Institutions (Form 4907).
A UBG combined return of financial institutions is filed under
There is not a corresponding supplement for insurance
the name and Federal Employer Identification Number (FEIN)
companies because, although they can be members of a UBG,
or Michigan Treasury (TR) assigned number of the DM of
they do not file combined returns.
the financial institution group. Designated Member means a
UBG member that has nexus with Michigan and will file the
Introductory pages of this CIT instruction booklet contain
combined CIT return on behalf of the financial institution
general information designed to assist in identifying
the existence and membership of a UBG. The following
members of the group. In a brother-sister controlled group, any
instructions address:
member with nexus may be designated to serve as DM. In a
parent-subsidiary controlled group or a combined controlled
• Filing combined returns by different member types within a
group (an interlocking combination of a parent-subsidiary
UBG.
group and a brother-sister group), the controlling member must
• Understanding the role of the Designated Member (DM).
serve as DM if it has nexus with Michigan. If it does not have
• For each type of UBG member that is reported on a
nexus, the controlling member may appoint any member with
combined return (standard and financial institution), there
nexus with Michigan to serve as DM. That DM must continue
is a required form that collects data that is necessary for
to serve as such every year, unless it ceases to be a group
preparation of a combined return:
member or the controlling member attains Michigan nexus.
The filing period of a combined return is based on the tax year
○ The CIT Unitary Business Group Affiliates Excluded
of the DM.
from the Return of Standard Taxpayers (Form 4896)
and CIT Data on Unitary Business Group Members
If a UBG is comprised of both standard members and financial
(Form 4897) support a combined return of standard
institutions, the UBG will have two DMs (one for the standard
members to be filed on the CIT Annual Return (Form
members completing Form 4891 and related forms, and one for
4891).
the financial institution members completing Form 4908 and
○ The CIT Unitary Business Group Combined Filing
related forms).
Schedule for Financial Institutions (Form 4910)
If the standard members are owned by a financial institution,
supports a combined return of financial institution
they will file as part of the financial UBG return, Form 4910.
members to be filed on the CIT Annual Return for
NOTE: If the UBG filed under MBT in 2011 and is now filing
Financial Institutions (Form 4908).
Guidance that is specific to only one form is contained in the
under CIT, the UBG must use the same DM if the DM still has
nexus, is a C corporation, and is still a member of the UBG. If
instructions for that form, in sections titled either “Special
Instructions for Unitary Business Groups” or simply “UBGs.”
the DM no longer has nexus, is not a C corporation, or is no
longer a member of the UBG, then the UBG must select a new
Following are instructions that apply to more than one form.
DM using the rules laid out in these instructions.
Special Instructions and the Designated Member
Role of the DM: The DM speaks, acts, and files the CIT return
Special Instructions for the Annual Return
on behalf of the group for CIT purposes. Only the DM may
file a valid extension request for the group. Treasury maintains
By definition, a UBG can include standard members, insurance
the group’s CIT tax data (e.g., prior CIT returns, overpayment
companies, and financial institutions. However, in some
credit forward) under the DM’s name and account number. The
cases not all members of the UBG will be included on the
DM must be of the same taxpayer type (standard or financial
same return. All standard members in a UBG (except those
institution) as the members for which it files a combined return.
owned by and unitary with a financial institution) file a single
combined return on Form 4891. Financial institution members
Recapture of Certain Credits
of a UBG (including any standard member owned by and
unitary with a financial institution in the group) file a combined
Recapture of credits, must be earned and calculated based on
return on Form 4908. Insurance company members of a UBG
actions performed on or after January 1, 2012, regardless of the
each file separately on Form 4905.
method selected for the tax calculation.
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