Taxes - U18. How does the MBT filing threshold apply to a unitary business group comprised of several members if one or more of the members has apportioned gross receipts of less than $350,000?

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U18. How does the MBT filing threshold apply to a unitary business group comprised of several members if one or more of the members has apportioned gross receipts of less than $350,000?

A taxpayer whose apportioned or allocated gross receipts are less than $350,000 is not required to file a return or pay the tax imposed under the MBT. MCL 208.1505(1). "Taxpayer" means "a person or a unitary business group liable for a tax, interest, or penalty under this act." MCL 208.1117 (emphasis added). Thus, so long as the apportioned or allocated gross receipts of the unitary business group equal or exceed $350,000, the unitary business group must file a return and pay the tax imposed by the MBT regardless of the gross receipts of the members of the unitary business group.

For example, a unitary business group is comprised of A, B, C, D, and E, each with $80,000 in gross receipts. Assuming allocation of the tax base and no intercompany transactions, the gross receipts of the unitary business group is $400,000. Since $400,000 exceeds the $350,000 filing threshold, the taxpayer is required to file a return and pay the tax imposed by the MBT. The fact that no member of the unitary business would meet the filing threshold if considered individually is immaterial under the MBT.

A taxpayer that is a unitary business group with apportioned or allocated gross receipts greater than $350,000 but less than $700,000 will qualify for the filing threshold credit under MCL 208.1411.