MI HB5937

Clarifies that taxpayers who filed returns under former 1975 PA 228 including entities disregarded for federal income tax purposes cannot be assessed additional taxes or have overpayments reduced based on this treatment.

Prohibits the department from requiring entities disregarded for federal income tax purposes to file separate tax returns when included in a taxpayer's prior return under former 1975 PA 228.

Prevents taxpayers from claiming refunds based on entities disregarded for federal income tax purposes filing separately as distinct taxpayers under former 1975 PA 228.

Applies retroactively as curative legislation to correct misinterpretations resulting from the Michigan Court of Appeals decision in Kmart Michigan Property Services v Michigan Department of Treasury (May 12, 2009), with exceptions for final court orders with exhausted appeals before February 12, 2010.

Takes immediate effect upon Governor approval on March 31, 2010.