Michigan Treasury Issues Income Tax Instructions for Electing Into, Paying the Flow-Through Entity Tax

The Michigan Department of Treasury Dec. 22 issued a notice with instructions for electing into and paying the flow-through entity tax for individual income and corporate income tax purposes. The legislature amended the Income Tax Act to create a flow-through entity tax in the state, retroactive to tax years beginning on or after Jan. 1. The election allows certain flow-through entities to file a return and pay tax on income in Michigan and allows members or owners of that entity to claim a refundable tax credit equal to the income tax paid by the entity. All payments under the tax ...