Maxitrol Co. v. Department of Treasury

Respondent appeals as of right from a June 24, 1994, opinion and judgment of the Michigan Tax Tribunal canceling respondent’s tax assessments against petitioners.

Maxitrol Company is a subchapter S corporation for federal income tax purposes. A subchapter S corporation refers to a small business corporation that meets the requirements set forth in § 1363 of the Internal Revenue Code, IRC § 1363. In general, an S corporation,

with limited exceptions, is not taxed at the corporate level. Instead, its items of income, loss, deduction and credit are passed through to, and taken into account by, its…