4897: Data on UBG Members* (2024)
Michigan · Michigan Treasury · Used for tax years 2024
Michigan Form 4897 is a schedule that reports separate tax data for each standard taxpayer member of a unitary business group (UBG). It includes member identification, losses, sales, gross receipts, business income adjustments, and payments, with member information totaled and ca
Who files this form
For tax year 2024, a unitary business group (UBG) must complete a separate Form 4897 for each standard taxpayer member included in its combined return, with or without nexus with Michigan. This includes the designated member (DM), which files the Corporate Income Tax (CIT) return for the group.
If a member other than the DM has two or more tax periods ending with or within the return’s filing period, complete a separate Form 4897 for each period.
Refund-only returns: Form 4897 is still required when the group files Form 4891 solely to claim a refund of payments made and either:
- Combined apportioned or allocated gross receipts after eliminations are less than $350,000; or
- Total annual liability of all members is $100 or less.
Include Form 4896 in that situation if applicable.
What you'll need
Have each member’s name, FEIN, address, federal tax period, membership dates if applicable, and six-digit NAICS code ready. You will also need the member’s sales, gross receipts, income, adjustments, loss carryforwards, and payment information.
Federal documents to include with the return:
- C corporations: Federal Form 1120, pages 1 through 6; Schedule D; and Forms 851, 965, 4562, 4797, and 5471. If filing as part of a consolidated federal return, attach a pro forma or consolidated schedule.
- LLCs taxed as C corporations: The appropriate schedules listed above.
- Federally exempt entities required to file a CIT return: Federal Form 990-T, pages 1 through 5.
A member without a separate federal return must prepare a pro forma federal return or equivalent schedule as the basis for its CIT information. A part-year member must prepare a pro forma federal return for the portion of its federal year when it belonged to the UBG.
Additional attachments, when applicable:
- Form 4900 if an amount is entered on line 14 or 17 for sales from unitary flow-through entities (FTEs).
- Form 4898 if an amount is entered on line 31 for income or loss from non-unitary FTEs.
- An Anchor District Tax Credit Certificate or Anchor Jobs Tax Credit Certificate supporting a qualified sales deduction.
- A list of acquired loss corporations for losses acquired under IRC section 381, with the acquiring member’s and loss corporation’s names and FEINs, and each loss amount.
- A separate list for each applicable member identifying FTEs whose items are exempt because of an MBT election, including names, FEINs, distributive income or loss, and distributive gross receipts.
- For an FTE tax credit on line 38, a copy of Schedule K-1 with its notes, or other supporting documentation received from the electing FTE.
The general supporting-forms instructions say not to send federal K-1 copies unless Treasury requests them. The specific line 38 credit documentation requirement is listed above.
How to file
The designated member files the CIT return on behalf of the UBG.
- Complete a separate Form 4897 for each required member and tax period, including the DM’s own information on its copy.
- Total the member information and carry it to the applicable lines of the group’s CIT Annual Return, Form 4891.
- Include the completed Forms 4897 and required supporting forms as part of the tax return filing.
The supplied text does not give a mailing address or e-filing directions.
Common mistakes
- Leaving out the DM’s own schedule. The DM must complete a Form 4897 using its own data.
- Entering annualized gross receipts on Form 4897. Report actual amounts here. Annualized amounts for short-period members belong on Form 4891.
- Creating a separate schedule for groupwide eliminations. Report each member’s eliminations on that member’s Form 4897. A separate eliminations entity is not permitted and can delay processing.
- Using the wrong loss carryforward. A CIT business loss carryforward is not a federal net operating loss carryover or an MBT business loss carryforward. Review CIT losses for expiration and amounts taken by departing members.
- Failing to reconcile business income. The total of all members’ line 25 amounts must agree with Form 4891, line 17.
- Relying on another member’s extension request. Only the DM can make a valid filing extension request for the UBG.
- Checking line 9b without the related election date. If line 9b is checked, Form 4891, line 7b must contain a date.
Questions people ask
Does a member without Michigan nexus need a Form 4897?
Yes. Complete a separate copy for each standard taxpayer member of the UBG, with or without nexus.
What if a member did not file its own federal return?
The member must prepare a pro forma federal return or equivalent schedule and use it as the basis for its portion of the CIT return.
What should I enter if a member has no Michigan sales?
Enter zero on line 13.
Can a member other than the DM request an extension for the group?
No. Only the DM may make a valid extension request for the UBG. A payment sent with another member’s extension request can still be credited to the group by reporting it on line 37 of that member’s Form 4897.
What belongs on line 22, “Miscellaneous”?
Leave it blank. The instructions state that there are currently no miscellaneous items to enter on that line.