- 5 -
|
Standard members will combine and report their data using Line-by-Line Instructions
CIT Unitary Business Group Affiliates Excluded from the
Lines not listed are explained on the form.
Return of Standard Taxpayers (Form 4896), CIT Data for
Unitary Business Group Members (Form 4897), and CIT Dates must be entered in MM-DD-YYYY format.
Annual Return (Form 4891).
For additional guidance, see the “Supplemental Instructions
NOTE: Insurance company members will file separately, using for Financial Members in UBGs” in the CIT Forms and
Insurance Company Annual Return for Corporate Income and Instructions for Financial Institutions (Form 4907).
Retaliatory Taxes (Form 4905). Because insurance companies
Part 1: Unitary Business Group Members
always file separately, rather than on a combined return, there
is no CIT insurance form that serves a function similar to that In Part 1, list only those members of the UBG that are
of Forms 4897 and 4910. included on the annual return that is supported by this form.
If more than 16 members, include additional copies of this
page of Form 4910 as needed, repeating the DM’s name and
Example A: UBG A is composed of the following: FEIN in the field at the top of each page. All excluded UBG
• Four standard members members will be identified in Part 3.
• Three financial institutions (all have nexus in Michigan) The Designated Member FEIN from the top of page 1 must be
• Two insurance companies. repeated in the proper location on pages 2 and 3.
All members of UBG A are owned by and unitary with Lines 1A and 1B: Beginning with the DM, list the UBG
one of the standard members of the UBG. UBG A will financial institution members and their corresponding FEIN.
need to file Form 4896, Form 4897 and Form 4891 NOTE: A taxpayer that is a UBG must file a combined
containing the four standard members and Form 4910 and return using the tax year of the DM. The combined return of
Form 4908 containing the three financial institutions. In the UBG must include each tax year of each member whose
Part 1 of each form, only the members that are included on tax year ends with or within the tax year of the DM. For
that form (either the four standard members, or the three
example, Taxpayer ABC is a UBG comprised of three financial
financial institutions) will be listed. Form 4896 and Form
institutions: Member A, the DM with a calendar tax year, and
4897 with standard members will be filed under the name
Members B and C with fiscal years ending March 31, 2019,
and Federal Employer Identification Number (FEIN) of
and September 30, 2019, respectively. Taxpayer ABC’s tax
the group’s standard DM. One of the financial institutions
year is that of its DM. Thus, Taxpayer ABC’s tax year ends
will serve as DM for those three members and file Form
December 31, 2019, and its annual return is due April 30, 2020.
4910 and Form 4908. On Form 4896, list all financial
That annual return must include the tax years of Members B
and insurance members. On Part 3 of Form 4910, list all
and C ending March 31, 2019, and September 30, 2019.
standard and insurance members. The two insurance
companies each will file a stand-alone Form 4905. If, in the previous example, Member A, the DM, instead had a
fiscal year ending July 31, 2023, the UBG’s tax year would end
Example B: UBG B is composed of the following: July 31, 2023, and its annual return would be due November 30,
2023. The combined return for the UBG would include Member
• Four members that would be standard (see below)
A’s tax year of August 1, 2022 through July 31, 2023, Member
unless owned by a financial institution
B’s tax year of April 1, 2022 through March 31, 2023 and
• Three financial institutions (all have nexus in Michigan) Member C’s tax year of October 1, 2021 through September 30,
• Two insurance companies. 2022.
All members of UBG B are owned by and unitary with Part 2A: Apportionment Data for Combined Return
one of the financial institutions in the UBG. Due to this When completing Part 1, if multiple copies of this page are
ownership by a financial institution, the four members that required, provide the same answers to Part 2A, lines 2 and 3,
otherwise would be standard are defined by statute to be on each copy of this page that is submitted.
financial institutions. (See definition of financial institution
earlier in these instructions.) Therefore, this UBG will not Line 2: Gross business is defined in the instructions on
Form 4908, line 9a. On a combined return, gross business is
file a Form 4896, Form 4897, or Form 4891. Seven members
will file a combined return on Form 4908 and Form 4910, calculated after eliminating transactions between financial
listing the two insurance members as excluded affiliates on institution members of the UBG. Enter combined gross
Part 3 of Form 4910. The two insurance companies each business in Michigan of all financial institution members
will file a stand-alone Form 4905. on line 2A, show eliminations on line 2B, and show net after
eliminations on line 2C. The combined gross business in
Michigan equals the sum of line 17 of Form 4910 of every
Role of the Designated Member: The DM speaks, acts, and member of the group.
files the CIT return on behalf of the UBG for CIT purposes.
Only the DM may file a valid extension request for the UBG. Carry amount from line 2C to line 9a on Form 4908.
Treasury maintains the UBG’s CIT tax data (e.g., prior CIT NOTE: For a UBG that includes financial institutions, gross
returns, overpayment credit forward) under the DM’s name and business includes gross business in Michigan of every financial
FEIN.
20
|