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2020. The combined return for the UBG would include federal tax year during which both tests were satisfied. These
dates constitute a short tax period for MBT purposes, even
Member A’s tax year of August 1, 2019 through July 31, 2020,
if there is no corresponding short federal tax period. This
Member B’s tax year of April 1, 2019 through March 31,
member must prepare a pro forma federal return calculation for
2020 and Member C’s tax year of October 1, 2018 through
the portion of its federal year during which it was a member of
September 30, 2019.
this UBG, and use that pro forma calculation as the basis for
Part 2A: Apportionment Data for Combined Return reporting the tax data required by Part 2B.
When completing Part 1, if multiple copies of this page are
required, provide the same answers to Part 2A, lines 2 and 3, Line
10: Enter the taxpayer’s six-digit North American Industry
on each copy of this page that is submitted. Classification
System (NAICS) code. For a complete list of six-
digit NAICS codes, see the U.S. Census Bureau Web site at
Line 2: Gross business is defined in the instructions to www.census.gov/eos/www/naics/ , or enter the same NAICS
Form 4590, line 10a. On a combined return, gross business is code used when filing U.S. Form 1120S , U.S. Form 1065 ,
calculated after eliminating transactions between financial Schedule C of U.S. Form 1040, or Schedule K of U.S. Form 1120.
institution members of the UBG. Enter combined gross
Line 11: Enter the date, if applicable, on which this member
business in Michigan of all financial institution members
went out of existence. Examples include dissolution of an entity
on line 2A, show eliminations on line 2B, and show net after
and a merger in which this member was not the surviving
eliminations on line 2C.
entity. Include any event in which the FEIN ceases to be used
Carry amount from line 2C to line 10a on Form 4590. by this entity. If this member continues to exist, DO NOT
use this column to report that this member has stopped doing
Line 3: Enter all gross business everywhere on line 3A, show in Michigan.
business
eliminations on line 3B, and show net after eliminations on line 3C.
Line 12: If this member has nexus with Michigan,
Carry amount from line 3C to line 10b on Form 4590. this box. Guidance in determining nexus can be
check
Part 2B: Member Data for Combined Return found in RABs 2007-6 and 2008-4, available online at
www.michigan.gov/taxes . (Click on the “Reference Library”
In all cases with one or more financial institutions in a UBG, at left side of that Web page.)
link
complete one copy of Part 2B for each financial institution in the
UBG whose net capital is reported on this return. Note that an Line 14: This line does not apply to the first MBT return filed
entity that would otherwise be a standard member but is owned by this UBG. For subsequent tax periods, check this box if this
by and unitary with afinancial institution is defined by statute to member was not included in the UBG’s preceding MBT return.
be a financial institution. If a financial institution member (other
Line 15: Enter a concise description of the activities or
than the DM) has two or more federal tax periods ending with or
operations of this member that result in a flow of value
within the filing period of this return, use a separate copy of Part
between this member and others in the UBG, or integration,
2B for each of that member’s federal periods.
dependence, or contribution to other members. This is
Line 7: Identify the organization type of this member: not limited to transactions that are recognized for tax or
• Fiduciary (a decedent’s estate, and a Trust taxed federally accounting
purposes. It may include sharing of assets,
as a Trust under Subchapter J of the IRC. A grantor Trust or employees,
data, business opportunities, or other resources.
“revocable living Trust” established by an Individual is not (See
RAB 2010-2.)
taxed as a separate entity, and is not within this Fiduciary Line 16: Enter equity capital as of the last day of the filing
category.); period, as computed in accordance with generally accepted
• C Corporation (including an LLC, Trust, or other entity accounting principles. If the member does not maintain its
taxed federally as a Corporation under Subchapter C of the books and records in accordance with generally accepted
IRC). accounting principles, net capital must be computed in
• S Corporation (including an LLC, Trust, or other entity taxed accordance with the books and records used by the member, so
federally as a Corporation under Subchapter S of the IRC). long as the method fairly reflects the member’s net capital for
purposes of this tax.
• Partnership (including an LP, LLP, LLC, Trust, or any other
entity taxed federally as a Partnership). NOTE: In completing the combined return, a member of a
unitary business group of financial institutions eliminates its
NOTE: A person that is a disregarded entity for federal tax
investment in the positive Equity Capital of other members
purposes, including a single member LLC or Q-Sub, must file
of the same group. Eliminations occur to Equity Capital at
as if it were a sole proprietorship if owned by an individual, or
the member level. Because each member of the group must
a branch or division if owned by another business entity.
compute the Net Capital tax base in accordance with GAAP,
Line 8: List the member’s tax year, for federal income tax each member should represent a positive or zero Equity Capital
purposes, from which business activity is being reported on before Eliminations. Thus, the resulting unitary return for
this copy of Part 2B. MBT may not exactly correlate to the group’s federal returns
Line 9: If the control test and relationship test were not both or
consolidated GAAP equity but will comply with the
satisfied for this member’s entire federal tax year, enter the requirements
of the MBT.
beginning and ending dates of the period within this member’s Line 17: In completing the combined return, a member of a
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