4896: Unitary Business Group (UBG) Affiliates Excluded from the Return of Standard Taxpayers* (2025)
Michigan · Michigan Treasury · Used for tax years 2025
Michigan Form 4896 lists affiliates excluded from a standard taxpayer’s combined Corporate Income Tax return that satisfy the greater-than-50% ownership test for a Michigan Unitary Business Group (UBG). It reports each affiliate’s name, FEIN, exclusion reason code, Michigan nexus
Who files this form
The 2025 Form 4896 lists affiliates excluded from a standard taxpayer’s combined Michigan Corporate Income Tax return.
List every C corporation (or entity taxed federally as one), insurance company, or financial institution that:
- Meets the Michigan Unitary Business Group (UBG) “greater than 50%” ownership test; and
- Is not included on the taxpayer’s combined standard return.
Include qualifying entities whether or not they have nexus with Michigan.
What you'll need
Have the designated member’s name and Federal Employer Identification Number (FEIN) ready.
For each excluded entity, gather:
- Number from federal Form 851, if applicable.
- Entity name and FEIN.
- Reason code for exclusion. The form directs you to use the codes in the instructions, which were not provided here.
- Whether the entity has nexus with Michigan.
- NAICS code.
Attach a copy of federal Form 851 if any listed entity belongs to an affiliated group that elects to file a consolidated return.
Common mistakes
- Do not leave out an otherwise qualifying excluded entity because it lacks nexus with Michigan. The form requires entities with or without nexus to be listed.
- Do not omit the required copy of federal Form 851 when a listed entity belongs to an affiliated group that elects to file a consolidated return.
- If you need more space, use additional copies of Form 4896 and repeat the designated member’s name and FEIN at the top of every copy.
Questions people ask
Do I list an excluded affiliate that has no nexus with Michigan?
Yes, if it is one of the entity types covered by the form and meets the UBG “greater than 50%” ownership test. The form requires qualifying entities to be listed with or without nexus.
How do I show that an entity has nexus with Michigan?
Enter an X in column E.
When must I attach federal Form 851?
Attach a copy if any entity listed on Form 4896 is a member of an affiliated group that elects to file a consolidated return.
What if I need more space?
Include additional copies of Form 4896. Repeat the designated member’s name and FEIN at the top of every copy.