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Tax & Assurance Guidance

Michigan Flow-Through Entity Tax Return Format

Posted on July 18, 2022 by

Miroslav Georgiev

Miroslav Georgiev

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The Michigan Department of Treasury recently issued templates to assist taxpayers with filing their 2021 Michigan Flow-Through Entity (“FTE”) Tax Returns.

Michigan

Michigan adopted an elective FTE tax in late December 2021 as a workaround to the state and local tax deduction limitation. The due date for the FTE return for calendar year taxpayers is March 31. The 2021 FTE return was automatically extended for six months while the Treasury worked on the reporting format. Taxpayers are required to file the annual return online through Michigan Treasury Online.

Important Forms & Templates

To assist taxpayers, the Treasury has provided a copy of the form and templates to gather the information needed to prepare and submit the return online. This information should be gathered in advance.

Owner reporting is provided on Schedule 5774. When entering the information on the MTO website, there’s a hyperlink under line 27. Note that there are two parts – Part 1 is for entities and Part 2 is for individuals, fiduciaries, etc. See page 3 on the link above for more detail. It is important that the amounts reported on Schedule 5774 agree with the amounts reported on the annual return, or the tax return will not be able to be submitted.

How to Access the Return

  • Go to MTO website
  • Log in
  • Choose the “Fast File” option
  • Select the year and tax type (MI FTE)
  • Provide the EIN of the entity. If for some reason the entity was not registered, click on “register” and complete the required information. Once the registration is complete, taxpayers should be able to access the MI FTE return and complete the filing.

Continue the Conversation

Clayton & McKervey clients will be receiving completed templates to assist with this filing. If you have any questions, please contact us.

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Miroslav Georgiev

Manager

With a pulse on State and Local Taxes, Miroslav advises inbound and outbound clients on tax planning, structuring and compliance.

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