What the New York Form CT-6 (2015) Is For
The New York Form CT-6 (2015) is used by a corporation that has elected S corporation status at the federal level and wishes to have New York State recognize that status for state tax purposes. New York does not automatically follow the federal S corporation election, so this form is required to obtain pass-through tax treatment under New York law. Without filing this election, the corporation is treated as a C corporation for New York franchise tax purposes.
When the election is approved, the corporation generally pays only the fixed dollar minimum tax in New York, while income, losses, deductions, and credits pass through to shareholders. Shareholders then report their share of the income on their personal New York tax returns. This election can significantly reduce overall state tax liability compared to the treatment of a C corporation.
When You’d Use New York Form CT-6
A corporation uses New York Form CT-6 when it wants to be treated as a New York S corporation for the first time. The form is typically filed when a corporation has already made, or plans to make, a federal S corporation election using IRS Form 2553. It may also be used when a corporation is newly formed or when it begins doing business in New York.
The form is also relevant if the corporation missed the original filing deadline and needs to request late election relief. In certain situations, it may be filed again as an amended election to correct errors in shareholder information or the effective date of the election. Each use of the form must follow New York-specific rules and timing requirements.
Key Rules or Details for 2015
To file New York Form CT-6 (2015), the entity must either have a pending federal S election or already qualify as a federal S corporation. Eligibility is limited to entities taxable under New York Tax Law Article 9-A or Article 32, as those subject to other articles cannot make the election. Unanimous consent is required, and all the necessary shareholders must sign the form.
For the 2015 tax year, the standard deadline for calendar-year filers was March 15, 2015, although filing during the prior tax year was allowed. Once approved, the New York S election applied for 2015 and all subsequent years unless it was formally terminated or automatically revoked due to loss of eligibility.
Step-by-Step (High Level)
Step 1: Confirm Eligibility
Confirm federal S corporation status and that the entity is taxable under the correct New York tax article. Verify that all shareholders meet federal ownership rules. Complete this review before preparing New York Form CT-6 2015.
Step 2: Determine the Filing Deadline
Use the tax year and the New York start date to identify the deadline. Calendar-year filers generally use the fifteenth day of the third month of the tax year. Newly formed entities use the incorporation date or the date the business began in New York.
Step 3: Complete the Form Accurately
Enter the legal name, EIN, state of incorporation, and required dates exactly as recorded. State the intended effective date for the New York S election. Mark any pending federal election status as needed on the CT6 form.
Step 4: Obtain Shareholder Consent
Collect signatures from all required shareholders and confirm each entry is complete. Ensure identifying details are accurate and match records. Missing signatures can render the CT6 form invalid.
Step 5: Submit the Form
Submit New York Form CT-6 2015 using the accepted method for that year and keep proof of filing. Retain copies of the completed form and any supporting documents. If filing late, include the requested explanation and submit as soon as possible.
Common Mistakes and How to Avoid Them
- Filing without unanimous shareholder consent: Confirm every required shareholder signs, including any required former shareholders, by reviewing stock and transfer records before filing.
- Assuming federal S status automatically applies in New York: File the separate New York CT-6 election so the New York S treatment is recognized.
- Submitting CT-6 with missing or incorrect entries: Review each field against corporate and shareholder records before signing to avoid delays or rejection.
- Filing the New York S corporation return before CT-6 approval: Wait to file the New York S return until the election is approved to prevent status conflicts.
- Ignoring CT-6 instructions and procedural details: Follow the CT-6 instructions closely for signatures, attachments, and submission steps to avoid C corporation taxation issues.
What Happens After You File
The New York State Department of Taxation and Finance examines the New York Form CT-6 2015 for eligibility, including federal S corporation status, shareholder consent, and compliance with New York regulations, after the submission of the CT-66 form. If accepted, the corporation starts filing as a New York S corporation for the relevant tax year after receiving written confirmation of the effective date. If rejected, until a corrected New York Form CT-6 for 2015 is approved, the corporation remains subject to New York C corporation filing requirements.
FAQs
Who must file New York Form CT-6 (2015)?
A corporation that has elected federal S corporation status and wants New York State to recognize that status must file this form. This applies to both New York–based and out-of-state corporations doing business in New York. The election is required even if the corporation has only one shareholder.
What is the deadline for filing the New York Form CT-6 for 2015?
For calendar-year corporations, the deadline was March 15, 2015. Corporations could also file during the prior tax year for the election to take effect in 2015. Late filings may still be accepted if reasonable cause can be demonstrated.
Can a New York Form CT-6 be filed if the federal election is pending?
Yes, the form may be filed while the federal S corporation election is pending. The corporation must indicate the pending status on the form. Proof of federal approval must be provided once it is received.
What happens if the election is approved?
Once approved, the corporation is treated as a New York S corporation for the effective tax year and future years. The corporation pays the fixed dollar minimum tax and files the appropriate S corporation return. Shareholders report their share of income on their individual New York returns.
Does the election need to be renewed each year?
No, the election remains in effect until it is formally terminated or automatically revoked. The corporation does not need to refile in New York on an annual basis. Ongoing compliance with eligibility requirements remains necessary.
How is the election terminated?
Termination requires filing the appropriate termination form; otherwise, eligibility as a federal S corporation will be lost. Shareholder revocation may also end the election if ownership thresholds are met. Once terminated, the corporation returns to C corporation treatment for New York tax purposes.
