Due Date for Filing Without Penalty Extended to December 31, 2011, Legislation Pending
The Michigan Department of Treasury has revised a notice stating that while disregarded entities for federal tax purposes are required to file Michigan Business Tax (MBT) returns, the due date to file the returns is extended to December 31, 2011 (previously, October 31, 2011).
This latest notice was originally published on November 29, 2010. At that time, affected persons were required to file a return, or amend a return for prior period, by June 30, 2011. This due date, in a Notice dated April 30, 2011, was revised to October 31, 2011. This due date, after which penalties will be assessed, is now again revised to December 31, 2011.
A person that is a disregarded entity for federal tax purposes, including a single member limited liability company or QSub, must file a separate return under the MBT or file as a member of a unitary business group if the requirements of MCL 208.1117(6) are satisfied. This requirement applies to all open tax periods under the MBT. A person disregarded for federal tax purposes that filed as a sole proprietor, branch, or division of its owner for MBT purposes (a "previously disregarded entity") is considered a non-filer for statute of limitations purposes under MCL 205.27a.
A person that previously filed an MBT return that included one or more previously disregarded entities, including a unitary business group, must amend its returns for all open periods, even if the amended returns do not result in a different tax liability.
A person required to file a return, or amend a return for a prior period, under this Notice must do so by December 31, 2011.