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Contact Information:
Edward S. Kisscorni, CPA
290 Suncrest Court, SW
Grandville, MI 49418

Office: 616/233-0667
Cell: 616/443-6730
Fax: 616/233-0667




Wednesday, March 10 2010

REVENUE ADMINISTRATIVE BULLETIN 2010-1  Approved: February 5, 2010



The Department of Treasury has finally issued the long awaited RAB on the Control Test for a MBT Unitary Business Group.  After several drafts and significant input from the MACPA and other groups, the Department has settled on their rules to administer the statutorily defined "Control Test".  The Department will use IRS Section 318, although not specifically mentioned, to define indirect ownership.  They have made some exceptions to a strict following of Section 318.  There is parental attribution in family member attribution applied on lineal basis.  There is attribution between brother-sister entities.  The RAB covers the effects of voting agreements on the "ownership or control" statutory requirement.  The Department specifies the "more than 50% of the ownership interest" is based on voting rights or comparable rights and links it to the ability to elect management of the entity.


Following is an outline of items covered in the RAB.


-Unitary Business Group defined

-Control Test defined

-Controlled Groups of Entities

                -Parent-Subsidiary Controlled Group of Entities

                -Brother-Sister Controlled Group of Entities     

-Combined Controlled Group of Entities

-Excluded Ownership Interest

-Controlled Group of Entities Without Common Control

-Voting Agreements

-Nonstock Nonprofit organizations

-Entities in more than one Controlled Group of Entities

-Indirect Ownership

                -Family Member Attribution

                -Attribution from Partnerships, Corporations, and trusts and Estates

                - Attribution to Partnerships, Corporations, and Trusts and Estates


                -Operating Principle


                                -Limitations on Re-Attribution

                                -Precedence of Option Principle

                                -Member of One Controlled group

                                -S Corporations Treated as Partnerships

Posted by: AT 01:10 pm   |  Permalink   |  Email


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