Taxes - U26. Can a unitary group, as defined in the MBT, enter into a voluntary disclosure agreement with the Department of Treasury under MCL 205.30c if one member of the group would be disqualified on its own?

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U26. Can a unitary group, as defined in the MBT, enter into a voluntary disclosure agreement with the Department of Treasury under MCL 205.30c if one member of the group would be disqualified on its own?

No, apart from nexus, a disqualification present for one member of a unitary business is imputed to the entire group. As a threshold matter, a person must make an application, be a non-filer, have nexus with Michigan and/or have a reasonable basis to contest liability. MCL 208.30c(2). "Person" is defined at MCL 205.30c(15)(c) as

an individual, firm, bank, financial institution, limited partnership, copartnership, partnership, joint venture, association, corporation, limited liability company, limited liability partnership, receiver, estate, trust, or any other group or combination acting as a unit. [Emphasis added].

A unitary group is a "group or combination acting as a unit." Thus, if one member of the group cannot meet the qualifications for an agreement neither can the unitary group.