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Line 66: Enter overpayment credited from the prior MBT or not eliminate intercompany transactions between itself and the
Corporate Income Tax (CIT) return. When membership of a foreign operating entity.
UBG changes from one filing period to the next, carryforward
If a transaction between two members of a UBG is reported
of an overpayment from the prior return remains with the DM’s
on the group’s current return by one member but reported on
account. As with business loss carryforwards, in general this
the preceding or succeeding group return by the other member
line should be used only on the DM’s copy of Part 2A (credit
(due to differing year ends or accounting methods of the
forward from the group’s prior return) or that of a new member
members), the side of that transaction that is included in the
(credit forward from the new member’s final return as a
group’s current filing period must be eliminated. The other side
separate filer).
of the same transaction will be eliminated on the group return
Line 67: All MBT estimated payments for a UBG should be for the filing period in which the other member reports the
made by the DM. Enter estimates paid by the DM on this line of transaction.
the DM’s copy of Part 2A. If any other member paid estimates
Line 29C: Add the combined total after eliminations from
attributable to the group return supported by this form, enter
Part 2B, line 29C, to the number on Form 4567, line 25, and
those estimates on that member’s copy of Part 2A. Include all
carry the sum to Form 4567, line 26. This calculation method is
payments made by that member for any portion of its federal
designed to prevent the fact of one member overcharging MGR
filing period that is included on the group return. For example,
Tax to its customers from being obscured by activities of the
if a non-DM member has a12-month fiscal year beginning April
other members.
1, 2010, and is a member of a calendar year UBG throughout that
period, its business activity from April 1, 2010, through March Line 43C: Business Income Tax Base. Add Column C, lines 30
31, 2011, will be reported on the group’s December 31, 2011, through 37 and subtract Column C, lines 38 through 42.
return. If that member pays MBT quarterly estimates, it will
Line 70: U.S. person is defined in IRC § 7701(a)(30).
make two estimates during 2010, before the DM’s filing period
begins. Because those estimates are attributable to activity that Line 72: Flow of value, integration, dependence, and
will be reported on the group’s December 31, 2011, return, they contribution in a UBG context are described under “General
should be included on the paying member’s copy of Part 2A for Information About UBGs in MBT” at the beginning of these
the December 31, 2011, group return. instructions for Form 4580, and in RAB 2010-2.
Line 68: This line is no longer is use. Part 3: Affiliates Excluded From The Combined
Return of Standard Taxpayers
Line 69: Only the DM may request a filing extension for a
The statutory test for membership in a UBG is a group of U.S.
UBG. If any other member submits an extension request, it
persons (other than a foreign operating entity):
will not create a valid extension for the UBG, but any payment
included with such a request can be credited to the UBG by • One whichof owns controls,or directly indirectly,or more
entering that payment on this line in that member’s copy of than 50 percent of the ownership interest with voting rights
Part 2A. or ownership interests that confer rights comparable to voting
rights of the other U.S. persons (see RAB 2010-1); and
Part 2B: Summary of Business Activity for Combined • That has business activities or operations which result in a
Return of Standard Taxpayers flow of value between or among persons included in the UBG
Part 2B supports, line by line, the combination of all members’ or has business activities or operations that are integrated
entries for each corresponding line in Part 2A, and elimination with, are dependent upon, or contribute to each other. Flow
of intercompany transaction data where appropriate. In general, of value is determined by reviewing the totality of facts and
see instructions for corresponding line numbers in Part 2A. circumstances businessof activities and operations. (See RAB
Guidance specific to the combination and elimination process 2010-2.)
is provided below. A person that would be a standard taxpayer if viewed
NOTE: Elimination, where required, applies to transactions separately is defined and taxed financialas a institution if it is
between any members of the UBG. For example, if the UBG owned, directly indirectly,or by financiala institution and is in
includes standard taxpayers (not owned by and unitary with a a UBG with owner.its
financial institution in the UBG), an insurance company, and The purpose of Part 3 is to identify persons for which the
two financial institutions, transactions between a standard ownership test described above is satisfied, but which are not
taxpayer member and an insurance or financial member are included on the combined return supported by this form, either
eliminated whenever elimination is required, despite the fact because the relationship test notis satisfied becauseor the person
that the insurance and financial members are not reported on is excluded statute.byA new member whose business activity is
the combined return filed by standard taxpayer members. not included in the current combined return because its tax year
However, there is no elimination with an otherwise related ends after the filing period theof UBG should also listedbe here.
entity if the related entity is excluded from the UBG. For Line 74A: If a person being listed here is listed on
example, consider agroup with aU.S. parent, aU.S. subsidiary, U.S. Form 851, enter the identifying number for that person
and a foreign operating entity subsidiary that would otherwise that is called “Corp. No.” at the left edge of pages 1, 2, and 3 of
be a UBG, but the foreign operating entity is excluded from the U.S. Form 851.
UBG by definition. The U.S. parent filing a UBG return may
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