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Michigan Corporate Income Tax: Understanding Unitary Business Filing & Apportionment

May 12, 2016
Co-presenter
Novi, MI

Sponsor: Michigan Chamber of Commerce

The Michigan Corporate Income Tax (CIT) replaced the Michigan Business Tax in January 2012. While it is arguably a more business-friendly tax, it still includes a number of complex topics. Join us for this half-day seminar to better understand the unitary filing and apportionment issues that arise in complying with the Michigan corporate income tax. This half-day seminar will be a “deep dive” into these issues with examples.

What Will Be Covered:

  • The unitary business group and issues arising from unitary filing
  • Apportionment issues under the CIT, including the apportionment of sales of tangible personal property, revenues from services and other "sales"
  • Apportionment issues for unitary filers
  • Most recent legislative changes to the tax and administrative interpretations issues and how they impact tax return preparation, including the most troublesome calculations

Agenda:

  • Unitary Business Groups
    • Identifying Members of a Unitary Business Group
    • Control Test and Attribution Rules
    • Relationship Test
    • Unitary Group Structures
    • Unitary Pass-Through Entities
    • Beginning and Ending of Unity
    • Taking Entities into and out of the Unitary Business Group
    • Foreign Corporations and 80/20 Companies
    • Foreign Dividends
    • Elimination of Intercompany Transactions
    • Denial of Deductions From Nonunitary Affiliates
    • Apportionment Issues
  • The Apportionable Tax Base
    • What is a "Sale" Included in the Sales Factor
    • Sourcing of Receipts from Tangibles
    • Sourcing Receipts from Services
    • Sourcing Receipts from Intangibles
    • How to document where a benefit is received
    • Accounting for income from Flow-Through Entities
  • Apportionment Challenges
    • How to prove distortion or misattribution of income
    • Challenges to Single Sales Factor Apportionment
    • When and How to Request Alternative Apportionment
  • Recent Developments
    • Legislative Changes
    • Guidance and Proposed Guidance from the Department of Treasury
  • Forms and Tax Calculation Issues Wrap-up

Certification:

This seminar qualifies as three (3) credits toward the Basic or Advanced Tax Policy and Finance Compliance Certification Programs.  This seminar also qualifies as three (3) credits under the guidelines of the Michigan State Board of Accountancy.

Thursday, May 12, 2016

Walsh College
41500 Gardenbrook Road
Novi, MI