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Filing Requirements 21. Who is a taxpayer under the CIT?

Under the CIT, a taxpayer is defined as a corporation, insurance company, financial institution, or unitary business group. MCL 206.611(5). "Corporation" means a person that is required or has elected to file as a C corporation under the internal revenue code. MCL 206.605(1). A "financial institution" is a bank holding company, a national bank, a state chartered bank, a state chartered savings bank, a federally chartered savings association, or a federally chartered farm credit system institution. "Financial institution" also includes any entity, other than an insurance company, that is directly or indirectly owned by a financial institution and is a member of the unitary business group. MCL 206.651. An insurance company means an authorized insurer as defined in section 108 of the insurance code of 1956, and does not include a health maintenance organization.

Flow-through entities, including S Corporations, partnerships, and trusts, generally are not taxpayers under the CIT, unless the flow-through entity elects or is required to file as a C corporation for federal tax purposes or otherwise constitutes an insurance company or financial institution.

Financial institutions and insurance companies are not generally subject to the income tax, but are subject to alternative taxes under Part II of the Income Tax Act.