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Michigan Department of Treasury                                                                                                              Attachment 6 
4898 (Rev. 03-22), Page 1 

2022 Michigan Corporate Income Tax:  
Non-Unitary Relationships with Flow-Through Entities 
(To report flow-through entities that are unitary with the taxpayer, see Form 4900) 
Issued under authority of Public Act 38 of 2011. 

   A Corporate Income Tax (CIT) taxpayer is unitary with a flow-through entity if the  CITtaxpayer owns or controls, directly or indirectly, more than 50% of the  
voting interests of the flow-through entity, and the parties have business activities that satisfy either a flow of value test or a business integration test. 

Taxpayer Name (If Unitary Business Group, Name of Designated Member)                           Taxpayer or DM Federal Employer Identification Number (FEIN) 

Unitary Business Groups Only: Name of the Unitary Business Group Member Reporting on This Form Member Federal Employer Identification Number (FEIN) 

IMPORTANT: If a flow-through entity (FTE) made a Michigan Business Tax (MBT) election and files an MBT  return for its tax year that ends with or within  
the tax year of the CIT taxpayer (or for UBGs, the member) named above, leave Column D and E blank for that FTE. 
                A.                                         B.                             C.                         D.                      E. 
                                                                                  Distributive Share       Flow-Through Entity   Apportioned Distributive  
                                                                        of Flow-Through Entity             Apportionment         Share of Flow-Through  
     Flow-Through Entity Name                            FEIN                          Income              Percentage            Entity Income (Loss) 

If more space is needed, include additional copies of Form 4898. Repeat the taxpayer name and FEIN at the top of every copy. 

+ 0000 2022 26 01 27 0 



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                                                                             Instructions for Form 4898 
       Corporate Income Tax: Non-Unitary Relationships with Flow-Through Entities 
                                                                                                                between   corporations.   This   act                        DID NOT   create   a  
Purpose 
                                                                                                                corresponding   “affiliated  group” test             for      finding                    a unitary      
The    purpose  of this           form                 is to  gather information           on  the              relationship  between      a corporation  and  an  FTE.  The  existence  
distributive         share  of flow-through                 income          (loss)   attributable               of      a unitary  relationship  between      a corporation  and  an  FTE      is
to   flow-through       entities  (FTEs) that                 are      directly      or  indirectly             still  based  exclusively  on  the  traditional  two-part  test  described  
owned   but        not  unitary for            apportionment            purposes       with    the              above. 
taxpayer,   or  with  the member                    of            a Unitary  Business Group                  
                                                                                                                NOTE: An  FTE  owned  directly      or indirectly  by      a taxpayer      or
(UBG).
                                                                                                                   a member          of a UBG  may      or may  not      be unitary  with      ataxpayer             
General Information                                                                                             or  UBG  member.  This  form  asks  for  information  only  about  the  
                                                                                                                FTEs   that    are  NOT unitary         for   apportionment          purposes              with         
This  form      is intended      to only             be     used    by      a Corporate        Income           the  taxpayer      or UBG  member.  For  those  FTEs  that  are  unitary  
Tax   (CIT)  taxpayer (or             member              of            a UBG)  to report      the              for   apportionment  purposes with              the  taxpayer,       use         the             CIT 
distributive  income  (loss)  from      its interests      in FTEs  that  are  not                              Unitary Relationships with FTEs (Form 4900).                          
unitary  for  apportionment  purposes  with  the  taxpayer      or UBG.  
This  form  must  be  filed  by  any  taxpayer  that  has      a distributive                                   Line-by-Line Instructions 
share      of income        (loss)    attributable                  to an    FTE  with  which the            
taxpayer      is not  unitary for              apportionment              purposes.                  If the     Lines                                                            
                                                                                                                          not listed are explained on the form.
taxpayer          is a UBG,          then      each    member      of the            UBG   that  has          a Taxpayer Name and Account Number: Enter  taxpayer  name  
distributive  share      of income  (loss)  from  an  FTE  that  the  UBG                                       and  account  number as      reported on            page      1          of the    CIT Annual 
       is not  unitary  with         for  apportionment                purposes  must file        this          Return (Form  4891). 
form.      If more   space      is needed,                use  additional  copies                of Form  
4898.   Repeat  the taxpayer’s                   and      UBG       member’s         name   and                 Unitary Business  Groups (UBGs):                                                                       
                                                                                                                                                                        Complete one form for                          
Federal  Employer  Identification  Number  (FEIN)  (if  applicable)                                             each                                                                                                  
                                                                                                                          member included   in the standard             return      that        received       a      
       at the  top      of every  copy      of Form  4898.                                                      distributive                                                                                           
                                                                                                                                share of   income (loss) from an FTE not unitary for 
                                                                                                                apportionment  purposes  with the               UBG.        Enter   the         Designated              
Flow-through entity                 means  an entity              that    for   the  applicable                 Member’s  (DM’s)  name  and FEIN                  in      the Taxpayer           Name         and       
tax   year  is treated           as            a subchapter               S Corporation under                   FEIN  fields  and  the name           and   FEIN     of      the member          to      which          
section  1362(a)      of the  Internal  Revenue  Code  (IRC),      a general                                    the schedule    applies       on   the   line  below.    
partnership,      a trust,      a limited  partnership,                            a limited  liability      
partnership,   or      a limited  liability company,                         that    for  the  tax              Column A and B:                                                                                        
                                                                                                                                             Identify each non-unitary FTE by name and 
year      is not   taxed  as                 a C Corporation           for   federal  income tax                FEIN. 
purposes.                                                                                                       Column C:  To           the  extent  included in      federal taxable               income              
                                                                                                                and the    corporate       income      tax  base   before        apportionment,                enter    
A taxpayer is unitary for apportionment purposes with an FTE 
                                                                                                                the  distributive  share of      income (loss)          attributable            to      the non-  
if the taxpayer: 
                                                                                                                unitary FTE      listed      inColumns A      and B.   Enter           loss   negative.   as            
  •    Owns   or  controls, directly                or    indirectly,        more    than  50%                         A UBG   member        will  enter   the  amount      of distributive  income                     
of   the  ownership interests                  with  voting         rights   (or  ownership                     (loss) from     each     non-unitary       FTE      listed      inColumns A      and B.      
interests  that  confer comparable                        rights          to voting  rights)      of the        For     each  UBG  member, the           sum    of      all distributive         shares       of        
FTE;  AND                                                                                                       flow-through        income  (loss)  entered in      Column C      shall equal                        
  •    The  taxpayer  and FTE             have      activities                  or operations  which            the  sum   all   of  distributive       shares   flow-through   of               income        (loss)   
result          in a flow      of value  between  the  taxpayer  and  the  FTE,      or                         entered on     line    32   the   of  CIT Data on Unitary Business Group 
between  the  FTE and                another     FTE        unitary       with     the   taxpayer,              Members (Form 4897).               
or  has  business  activities      or operations  that  are  integrated  with,                                  To compute      the      amount      required   be   to       reported   Column   in               C,   
are  dependant  upon,      or contribute      to each  other.                                                   for each    FTE     listed      inColumns A   and        B:   
The   determination of               whether                    a taxpayer is        unitary   for                • Begin with       the    amount   distributive   of          share   income   of            (loss)   
apportionment  purposes  with an                          FTE             is made      at the  taxpayer         included   federal   in      taxable   income.      
level.   If  the taxpayer            at  issue   is                 a UBG, the       ownership               
requirement  will      be made      at the  UBG  level.  So,      if the  combined                                  Adjust                                                                                             
                                                                                                                  •            that amount by         amounts       attributable     to the         FTE                
ownership      of the           FTE   by  the  UBG                  is greater       than  50%,  then           that                                                                                                   
                                                                                                                        are included on      the   following    lines       of   Form 4891:          12,      13,   
the  ownership  requirement  will      be satisfied.                                                            14c,18,                                                           
                                                                                                                           19, 20, 21, 22, 23, 27, 28, 29, and 30.
                                                                                                                  • Report the      result   Column   in     C.   
An FTE is not unitary with a taxpayer  when  either      of the  tests  
above      is not  met.                                                                                         Exclusion of MBT Filer Distributive Shares 
                                                                                                                Public    Act  233      of 2013 provides        that,   in      the case        of      an FTE          
Public Act (PA) 266 of 2013 
                                                                                                                that    made  the election        to  remain    taxable       under  the MBT,                           
PA   266  of  2013 authorizes                  an   affiliated         group    election   that                 each  member      of the FTE         that  does   not   file    as          a member of a          
applies   an  alternate test             for   finding                    a unitary relationship             

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UBG   with  the FTE                 shall      disregard      all     items     attributable        to                   each  FTE  included  on  this  form. 
that   member’s         ownership  interest                       in the     electing  FTE for                all    
                                                                                                                         For   FTEs  whose distributive   income   (loss)         is exempt  under      
purposes       of     the  CIT.            If the    taxpayer  owns an               interest       in      an       
FTE that       files   an        MBT          return    for       a tax year       that     ends     with          or    2013 PA 233                               
                                                                                                                                        , leave column   E blank.
within   this  taxpayer’s tax                  year,      the  taxpayer’s         distributive                           NOTE: The  sum      of column      E (in  the  case          of a UBG,  the  sum  
share     of  income  (loss) from                   such    FTE       will    be  exempt         from                    of  column      E for  all  UBG  members)  should equal         the  amount    
the   taxpayer’s        corporate  income tax                       base.    Report        distributive                  reported  on  Form  4891,  line  34. 
income      (loss)    exempt  under 2013                    PA      233             in column  C,  then                 
                                                                                                                         Include completed Form 4898 as part of the tax return filing. 
leave Columns                 D and      E blank. 
Tiered Entities:  In                 the  event                  of a tiered    entity,       enter      in this  
column        the  distributive share                of   income          or  loss     attributable                     
to      a non-unitary  FTE in                  which      the  taxpayer         has    an  indirect                     
ownership interest.                
When  computing  the distributive                         share              of income         attributable  
to   the  non-unitary FTE                    in  which    the       taxpayer      has                     a direct  
ownership  interest,  only enter                     the    direct     income                    of that    FTE.    
This      is done      by subtracting any               income          (loss)     attributable                 to the  
filer’s  indirectly  owned FTEs                      from   the       income      (loss)       reported                 
here that          is attributable      to the directly              owned       FTE.         
Example:   C          Corporation                    1 owns  50% of             FTE              B and  FTE             
    B owns      40%      of       FTE  A. FTE                   B received  from FTE                   A             a   
distributive       share of          income          of $20,000.          C Corporation                                 
    1 received        from      FTE          B a distributive  share of                      income         of          
$100,000. On           the       line  corresponding                      to FTE A,          C Corporation  
    1 would     enter    $10,000.              This      is the     indirect  distributive share                     
that      C Corporation      1 received from                    FTE             A and      is calculated by             
multiplying      C Corporation 1’s                      ownership             interest           in FTE      B by  
the distributive         share        FTE            B received from           FTE      A:   
              50%      x $20,000      = $10,000 
On  the  line corresponding                            to FTE       B,      C Corporation      1 would  
enter     $90,000.      This              is the   distributive  share                  C Corporation   1   
received from          FTE              B less the    distributive            share          C Corporation  
    1 received from      FTE          A:   
              $100,000             - $10,000      = $90,000 
NOTE:  The  sum  of the                      amount       in  every       line    on column                          C   
(plus,      in the case                   of a UBG, the    sum            of column      C for all         other        
UBG       members  that  filed this                  form)     should         equal     the    amount                   
reported on       Form           4891,        line  26.  
Column D:            Enter  in this              column     the  non-unitary                 FTE’s                   
apportionment                   percentage.                 The              non-unitary                  FTE’s  
apportionment           percentage  is the                FTE’s        sales      factor.                  The          
sales  factor                is a fraction,      the   numerator      of which      is the                    total     
sales     of  the FTE           in  this     state   during      the tax      year     and     the                      
denominator      of which      is the total                  sales           of the FTE       everywhere             
during      the  tax  year. For              more      information           on   what                     is a sale,  
see   the  instructions for                  Form    4891.     Use     the      information            in               
the “Sourcing               of Sales      to Michigan”                section      of Form             4890   to   
determine  Michigan  sales. Enter                         this      amount                  as a percentage,  
carrying      it out      4 digits      to the            right      of the       decimal  point  (i.e.              
12.3456).  Do not enter the percent symbol (%). 
For   FTEs  whose distributive                       income         (loss)              is exempt  under                
2013 PA 233    , leave  column      D blank. 
Column E:   Enter  the non-unitary                            flow-through              distributive                    
income   after  apportionment by                          multiplying           the  amount         in                  
column      C by      the  apportionment percentage                                     in column      D for  

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