What the New York Form CT-6 (2014) Is For
New York Form CT-6 (2014) is used by a corporation that already has, or is seeking, federal S corporation status and wants New York State to recognize that status for state tax purposes. A federal S election made with the Internal Revenue Service does not automatically apply in New York; therefore, a separate filing is required in New York. By submitting the CT6 form, an eligible corporation elects to be taxed as a New York S corporation, rather than as a C corporation.
When the election is approved, the corporation generally ceases to pay New York's corporate-level franchise tax on its income. Instead, income, losses, and deductions pass through to shareholders, who report them on their own New York personal income tax returns. This change also affects which New York corporate tax return the business must file going forward.
When You’d Use New York Form CT-6
A corporation would file New York Form CT-6 2014 when it wants New York State to treat it as an S corporation for the first time. This commonly happens after a federal S corporation election is made, when a new corporation is formed, or when an existing federal S corporation begins doing business in New York. The form is also used if the corporation previously failed to make the New York election and wants it to take effect for a later year.
The form may also be filed in connection with a late or retroactive election in limited circumstances. If the IRS has granted retroactive relief for a federal S election, New York may allow a corresponding state election if all requirements are met. In these cases, additional documentation and full shareholder consent are required.
Key Rules or Details for 2014
To file New York Form CT-6 for 2014, the corporation must generally already be a federal S corporation or have a pending federal election. The CT6 form is limited to corporations taxable under New York Tax Law Article 9-A (general business corporations) or Article 32 (banking corporations), and excluded corporations cannot make the election. New York requires a separate state election, so federal approval alone does not establish New York S corporation status.
Unanimous shareholder consent is required under the form CT 6 instructions, and each shareholder who owned stock at the time of the election generally must sign. In certain first-year situations, some former shareholders may also need to consent, which makes accurate stock records important. Once approved for 2014, the election affects which New York corporate franchise tax return the corporation files and how shareholders report pass-through items for New York purposes.
Step-by-Step (High Level)
Step 1: Confirm eligibility for New York S status
Verify federal S corporation status and confirm the corporation is taxable under the correct New York tax article. Check New York's election eligibility rules before completing the form.
Step 2: Gather shareholder information and consents
Collect complete shareholder details, including ownership percentages and required consent information. If there are more shareholders than the form allows, prepare additional consent statements with the same identifying information required on the form.
Step 3: Complete Form CT-6 accurately
Fill out Form CT-6 using the corporation’s legal name and correct identification numbers. Review entries for consistency with corporate records to reduce rejection risk.
Step 4: Obtain required signatures
Secure signatures from all required shareholders and an authorized corporate officer. Confirm signature requirements match the CT-6 instructions.
Step 5: Submit by an accepted method and keep copies
Submit the form to the New York State Department of Taxation and Finance by fax or mail, following the current instructions. Keep a copy of the filed form, attachments, and proof of submission for records.
Common Mistakes and How to Avoid Them
- Missing the filing deadline: File the CT-6 election by the 15th day of the 3rd month of the tax year, so the election applies for that year.
- Incomplete shareholder consent: Confirm every required shareholder signing by cross-checking current and required former shareholder records before submitting.
- Assuming federal S status automatically applies in New York: Submit the New York CT-6 election separately to secure New York S corporation treatment.
- Filing the New York S corporation return before CT-6 approval: Wait to file the New York S corporation return until the CT-6 election is approved to avoid mismatched status issues.
- Incorrect shareholder IDs or ownership details: Verify SSNs/EINs and ownership percentages against official records and re-check entries digit by digit.
What Happens After You File
After the New York Form CT-6 (2014) is submitted, the New York State Tax Department reviews the CT-6 form to confirm eligibility, shareholder consent, and that the filing is complete. Processing is not immediate, so the corporation should expect a waiting period before receiving written notice. If information is missing or inconsistent with the form and its six instructions, the department may delay the decision or request clarification.
If the election is approved, the notice will confirm the effective date of New York S corporation status, and the corporation’s New York filing requirements will change for that tax year. Until that approval is received, the corporation should continue filing the correct New York corporate return and should not file as an S corporation prematurely. Keeping copies of the submitted election, shareholder consents, and supporting documents helps support compliance if questions arise later.
FAQs
Do corporations need to file the New York Form CT-6 every year?
No, the form is filed once to make the election. After approval, the New York S corporation status remains in effect until it is terminated or becomes invalid.
Who is required to sign the CT6 form?
All shareholders who owned stock at the time of the election must consent. In some cases, former shareholders who held stock early in the election year must also sign.
What is the filing deadline for New York Form CT-6 2014?
For most calendar-year corporations, the deadline is March 15 of the year the election is intended to take effect.
Can a corporation file if its federal S election is still pending?
Yes, the form may be filed while the federal election is pending; however, New York will not finalize approval until confirmation is received from the federal level.
What happens if the form is filed after the deadline has passed?
A late filing usually means the election becomes effective for the next tax year unless retroactive relief applies.
Can a subsidiary file its own Form CT-6?
No, a qualified subchapter S subsidiary cannot file the form on its own. Only the parent corporation may make the election.
How is a New York S corporation election terminated?
Termination generally requires filing Form CT-6.1, accompanied by the appropriate shareholder consent.
