What the New York Form CT-6 (2022) Is For
New York Form CT-6 (2022) is used by a federal S corporation to elect to be treated as a New York S corporation for state tax purposes. New York does not automatically accept a federal S corporation election; therefore, filing this form is necessary for businesses seeking pass-through taxation at the state level. Without an approved CT-6 election, the corporation is taxed as a C corporation for New York purposes.
When the New York S corporation election is approved, the corporation becomes subject to Article 9-A S corporation rules. The business generally pays only the fixed dollar minimum franchise tax, rather than a tax based on income. Shareholders instead report their proportional share of income, losses, and deductions on their New York personal income tax returns.
When You’d Use Form CT-6
Form CT-6 is used when a corporation is already classified as a federal S corporation or has a pending federal S election and wants that status recognized by the state of New York. This applies to existing corporations, newly formed entities, and foreign corporations that begin doing business in New York. Filing the form determines how the corporation and its shareholders are taxed at the state level.
The form may also be used if the original election was not filed by the deadline. New York allows late or retroactive elections when the corporation can demonstrate reasonable cause for the delay. In these cases, Form CT-6 must be filed with a written explanation supporting the request for relief.
Key Rules or Details for 2022
To file New York Form CT-6 2022, the corporation must qualify as a federal S corporation and be taxable under Article 9-A of the New York Tax Law. Corporations subject to tax under Article 9 or Article 33 are considered excluded corporations and are therefore ineligible to make the New York S corporation election. A qualified subchapter S subsidiary also cannot file its own election and must be included under the parent corporation’s filing.
Unanimous shareholder consent is required for the election to be valid. Every shareholder who held stock during the consent period must agree to the election, including individuals, estates, trusts, and tax-exempt organizations. Once approved, the New York S corporation election remains in effect for the requested year and all subsequent years, unless it is formally terminated.
Step-by-Step (High Level)
Step 1: Provide Corporate Information
The corporation must enter its legal name, Employer Identification Number, mailing address, state of incorporation, and the date it began doing business in New York. The tax year-end must also be clearly stated.
Step 2: Select the Election Effective Date
The form requires the beginning date of the tax year for which New York S corporation status is requested. Retroactive elections must be clearly identified and supported with a written explanation.
Step 3: Report Federal S Election Information
The corporation must list the effective date of its federal S corporation election. If the federal election is still pending, the appropriate box must be checked.
Step 4: List Shareholders and Obtain Consent
Each shareholder’s name, address, identifying number, ownership percentage or shares, and signature must be included. All shareholders who held stock during the relevant period must provide consent for the election to be valid.
Step 5: Certify and Submit the Form
An authorized corporate officer must sign the certification section to confirm that the information is accurate and complete. The completed CT-6 form instructions specify that the form may be submitted by fax or mail to the New York State Department of Taxation and Finance.
Common Mistakes and How to Avoid Them
- Missing shareholder signatures: Review ownership and stock-transfer records to identify every required signer and confirm all signatures are included before filing.
- Overlooking a required signer in first-year or special ownership situations: Check whether former shareholders or other required consenting parties apply and collect signatures accordingly.
- Missing the filing deadline: File by the 15th day of the 3rd month of the tax year so the election applies for that year.
- Submitting a late election without a reasonable-cause explanation: Attach a detailed reasonable-cause statement that explains why the deadline was missed and how the issue was corrected.
- Requesting late or retroactive treatment without required documentation: Include all supporting documents required for the specific request before submitting to reduce the risk of denial.
What Happens After You File
After Form CT-6 is filed, the New York State Department of Taxation and Finance reviews the submission for eligibility and completeness. The department verifies shareholder consent, federal S corporation status, and compliance with New York filing requirements. The corporation will receive written notice confirming the approval or denial of the election, along with the effective date of the decision.
Until approval is received, the corporation should continue filing New York returns as a C corporation. Once the election is approved, the corporation begins filing New York S corporation returns for the applicable tax year. Shareholders then report their allocated share of income and deductions on their individual New York tax returns.
FAQs
Does filing Form CT-6 change a corporation’s federal tax status?
No, filing Form CT-6 does not affect a corporation’s federal S corporation status. The New York S corporation election and the federal S election are separate and independent. Approval of one does not automatically result in approval of the other.
What is the deadline for filing the New York Form CT-6 2022?
New York Form CT-6 2022 must generally be filed by the fifteenth day of the third month of the tax year for which the election is requested. For calendar-year corporations, this deadline is typically March 15. Filing after this date may require requesting late-election relief.
Can Form CT-6 be filed late?
Yes, New York allows Form CT-6 to be filed late if the corporation can show reasonable cause for missing the deadline. The filing must include a written explanation detailing the circumstances that caused the delay. Approval of a late election is not automatic and is subject to review by the Tax Department.
Is unanimous shareholder consent required?
Yes, unanimous shareholder consent is required for a valid election of a New York S corporation. Every shareholder who held stock during the consent period must agree to the election. Missing even one required signature can render the filing invalid.
How long does the New York S election remain in effect?
Once approved, the New York S corporation election remains in effect for the requested year and all subsequent tax years. The election continues automatically unless it is formally revoked or terminated. Termination generally requires filing Form CT-6.1.
Can a corporation file CT-6 if its federal S election is pending?
Yes, a corporation may file Form CT-6 while its federal S election is still pending. However, New York's S corporation status will not be finalized unless the federal election is approved. If the federal election is denied, the New York election will not take effect.
