4580: Unitary Business Group Combined Filing Schedule (2024)
Michigan · Michigan Treasury · Used for tax years 2024
Michigan Form 4580 is the 2024 Michigan Business Tax Unitary Business Group Combined Filing Schedule for Standard Members. It identifies members included in the combined return and reports each member’s sales, modified gross receipts, business income, deductions, credit carryforw
Who files this form
A Michigan Unitary Business Group (UBG) filing a combined return for its standard members on Form 4567 must also file Form 4580. The group's Designated Member (DM) files on behalf of those members. Form 4580 supports the annual return; it is not the primary return.
A UBG is a group of U.S. persons, other than foreign operating entities, that meets both tests:
- Control: One person owns or controls, directly or indirectly, more than 50% of the ownership interests with voting or comparable rights of the others.
- Relationship: The members' activities create a flow of value between them, or are integrated with, dependent upon, or contribute to one another.
Financial institutions and insurance companies generally do not report their tax data on Form 4580. They are listed as excluded affiliates in Part 3. An entity owned by and unitary with a financial institution may itself be classified as a financial institution rather than a standard member.
What you'll need
Gather the information and supporting documents that apply to your group:
- Member details: Names, FEINs or Michigan Treasury numbers, addresses, organization types, federal tax periods, membership dates, six-digit NAICS codes, and descriptions of the business relationships between members.
- Member tax data: Michigan and total sales, gross receipts, purchases, business income, adjustments, applicable carryforwards, prior overpayment credits, estimated payments, and extension payments.
- Federal returns or equivalent schedules: A member that does not file a separate federal return must prepare a pro forma federal return or equivalent schedule. A part-year member must prepare a pro forma federal return for the period it was a UBG member.
- Worksheet 4700: Use this worksheet from Form 4600 to calculate gross receipts and attach it to the return.
- Federal Form 851, if applicable: Attach a copy if some or all members are included on a consolidated federal income tax return, or if any affiliates listed in Part 3 are part of a federal consolidated group.
- Conditional attachments: For business activity protected under PL 86-272, complete and attach Form 4581 or Form 4586, as applicable. If Michigan sales are reduced for qualifying sales to a qualified customer, attach the applicable Anchor District or Anchor Jobs Tax Credit Certificate.
For the contractor deduction, supporting documentation may include a written contract identifying the specific construction project and subcontractor costs.
How to file
The Designated Member files Form 4580 in support of the group's Form 4567. Complete Form 4580 before completing Form 4567 and related forms.
- Part 1A: List included standard members, starting with the DM. Include members with or without Michigan nexus, except those excluded in Part 3.
- Parts 1B and 2A: Complete separate copies for each standard member. If a member other than the DM has multiple tax periods ending within the group's filing period, complete separate copies for each period.
- Part 2B: Combine the member data, make the applicable eliminations, and carry amounts to the forms and lines shown in column D.
- Part 3: List excluded affiliates that meet the greater-than-50% ownership test and give the reason for exclusion.
- Part 4: List standard members included in the DM's immediately preceding combined return but excluded from the current return. List a person in both Parts 3 and 4 if both apply.
Common mistakes
- Entering data in blocked boxes: Do not enter data in boxes filled with Xs.
- Using the wrong format: Enter dates as MM-DD-YYYY and Part 2A dollar amounts in whole dollars only.
- Misusing the discontinued date: Do not use line 9 merely because a member stopped doing business in Michigan if the member still exists.
- Repeating the DM in the member list: On additional Part 1A pages, repeat the DM's name and identification number at the top, but not on line 1.
- Carrying every line into Part 2B: The form specifically notes that not all Part 2A lines carry over.
- Claiming incompatible benefits: The line 22 contractor deduction is available only if the group does not claim the Small Business Alternative Credit for the tax year.
Questions people ask
Whose tax year determines the group's filing period?
The Designated Member's tax year determines the filing period. Include each member tax year that ends with or within the DM's tax year.
Who must serve as the Designated Member?
In a parent-subsidiary controlled group, the controlling member must serve as DM if it has Michigan nexus. If it does not, it may appoint a member with Michigan nexus. The DM must be the same taxpayer type as the members for which it files.
Is Form 4580 required for a refund-only return?
Yes. If combined apportioned or allocated gross receipts before eliminations are less than $350,000, there is no recapture, and Form 4567 is filed solely to claim a refund of estimated payments, include Form 4580. Complete Parts 1A, 2B, 3, and 4, plus Parts 1B and 2A for each listed member. Skip lines 18 through 65 in Parts 2A and 2B.
Can any member request an extension for the group?
No. Only the Designated Member may file a valid extension request for the group.