The Michigan Department of Treasury has recently issued guidance that has eliminated the requirement that flow-through entities (e.g., a partnership, S Corporation, or limited liability company) withhold income tax on a member's distributive share of income for tax years that begin on or after July 1, 2016. The new bill discontinues the flow-through entity's obligation to withhold taxes for their individual nonresident members, corporate members, and other flow-through entities.
For flow-through entities that use a calendar year end for tax reporting, this repeal will take effect beginning Jan. 1, 2017. Accordingly, affected entities should continue the normal withholding requirements through the end of 2016.
You're Invited! Annual Not-For-Profit Accounting Update
Thursday, September 26, 2019
Hosted at Detroit Historical Museum
Save The Date!
Middle Market Manufacturing Outlook
Wednesday, October 23
Hosted at the Detriot Athletic Club
7:30 AM - 11:30 AM