4. Who may file a composite return?
A flow-through entity that has generated Michigan taxable income (loss) may choose to file a Michigan Composite Individual Income Tax Return (Form 807) on behalf of two or more of its nonresident members who elect to participate.** An intermediate flow-through entity may also be eligible to file a composite return. See "May an intermediate flow-through entity file a composite return?".
**Limitations may apply on an intermediate flow-through entity's ability to participate in another flow-through entity's composite return if the intermediate flow-through entity elected to pay the Michigan Flow-Through Entity tax. See "Flow-Through Entity (FTE) Tax Credit FAQs".