Federally Disregarded Entities are Disregarded for the Corporate Income Tax
Public Act 306 of 2011 (S.B. 653), Public Act 307 of 2011 (S.B. 666), Public Act 309 of 2011 (S.B. 678), and Public Act 311 (H.B. 4940), all effective January 1, 2012 specify that a person that is a disregarded entity for federal income tax purposes is classified as a disregarded entity for the Michigan Corporate Income Tax (CIT) and the personal income withholding tax. A flow-through entity does not include any entity that is disregarded.
Public Act 306 amends section 607 of the Income Tax Act. [MCL206.607]
Public Act 307 amends section 605 of the Income Tax Act. [MCL206.605]
Public Act 309 adds a new Section 699 to the Income Tax Act. [MCL206.699]
Public Act 311 amends section 701 of the Income Tax Act. [MCL206.701]