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REMINDER NOTICE: FLOW-THROUGH ENTITY TAX PAYMENTS DUE BY MARCH 15, 2022, TO CREATE A MEMBER INCOME TAX CREDIT FOR TAX YEAR 2021

Date: March 2, 2022

Effective for tax years beginning on or after January 1, 2021, the Michigan flow-through entity tax, enacted under 2021 PA 135, levies an elective income tax on flow-through entities with business activity in Michigan. The timely payment of the flow-through entity tax creates a refundable income tax credit and other adjustments that are passed through and ultimately reported on the Michigan income tax returns of certain members. For calendar year flow-through entities that have elected to pay the Michigan flow-through entity tax for tax year 2021, only payments received by March 15, 2022, are eligible to be claimed as a credit on members' 2021 tax year returns. Tax year 2021 flow-through entity tax payments made after March 15, 2022, will delay the members' credits until tax year 2022 or later. This credit cutoff date does not impact the March 31, 2022, date set for filing the annual tax return for calendar year flow-through entities. Additional information regarding flow-through entity tax payments and the computation of the member credit is available in Treasury's prior notice. 

For additional guidance on the Michigan flow-through entity tax, please visit the flow-through entity tax page located at www.michigan.gov/taxes.