What Form CT-6 (2017) Is For
New York Form CT-6 (2017) is used by a federal S corporation to elect treatment as a New York S corporation for state tax purposes. New York does not automatically follow federal S corporation elections, so filing this form is required for pass-through treatment at the state level. Without this election, the corporation remains subject to New York corporate franchise tax as a C corporation, even if it is treated as an S corporation by the IRS.
Once approved, the election changes how income is taxed in New York. Most corporate income is passed through to shareholders, who report it on their individual or entity tax returns, while the corporation files a New York S corporation return. This alignment helps prevent double taxation and ensures that state treatment aligns with federal expectations.
When You’d Use Form CT-6
Form CT-6 is filed when a corporation wants to obtain New York S corporation status for a specific tax year. For calendar-year corporations, the form must generally be filed by March 15 of the year the election is intended to take effect. Corporations forming or beginning New York operations midyear have shorter deadlines tied to their start date.
The form is also used when requesting late or retroactive treatment after missing the standard deadline. In these cases, New York generally relies on whether the IRS approved the federal S election retroactively. The state election cannot stand on its own if federal S corporation status is denied.
Key Rules or Details for 2017
To file New York Form CT-6 2017, the corporation must already be a federal S corporation or have a pending federal election. The business must be taxable under New York Tax Law Article 9-A, which applies to general business corporations. Corporations subject to other tax articles, such as insurance companies, are not eligible to make the election.
Unanimous shareholder consent is required. Every shareholder holding stock on the filing date must sign the form or provide a valid consent statement. In some cases, former shareholders who held stock earlier in the tax year must also consent, depending on when the election is filed.
Once approved, the election remains in effect until it is formally terminated or federal S corporation status ends. Termination requires filing Form CT-6.1 or losing eligibility under federal or state rules. The election applies to all future years unless properly ended.
Step-by-Step (High Level)
Step 1: Confirm Eligibility
The corporation must meet federal S corporation requirements and be taxable under Article 9-A. All shareholders must be identified, and eligibility exclusions must be reviewed before completing the form.
Step 2: Complete the Form
The corporation enters its legal name, employer identification number, incorporation details, and the intended effective tax year. Shareholder information must be listed accurately, including ownership details and signatures. Continuation sheets may be used if needed.
Step 3: Obtain Required Signatures
An authorized corporate officer must sign the certification section of the form. Every required shareholder must sign, either on the form or through a separate consent statement.
Step 4: Submit the Form
The completed form is submitted to the New York State Department of Taxation and Finance by fax or mail. The filing date is determined by the postmark or the date of accepted transmission.
Step 5: Await Approval
The Tax Department reviews the election and issues a written approval or denial. Until approval is received, the corporation must continue filing as a C corporation.
Common Mistakes and How to Avoid Them
- Missing shareholder signatures: Confirm unanimous consent by collecting signatures from every required shareholder and verifying shareholder records before filing.
- Using the incorrect effective date: Select the correct tax year and file by the deadline to ensure the election applies as intended. Confirm dates before submitting.
- Filing after the deadline and expecting it to apply retroactively: File early whenever possible and include any required late-election explanation only when a valid basis exists.
- Submitting CT-6 without federal S corporation approval: Wait for federal S corporation confirmation before filing CT-6 to avoid an automatic failure if the IRS denies the election.
- Relying on estimates instead of records: Verify ownership details and election timing against official documents to reduce rework and processing delays.
What Happens After You File
After submission, the Department of Taxation and Finance reviews the form for completeness and eligibility. This review includes confirmation of federal S corporation status, shareholder consent, and proper classification under New York tax law. Processing times vary, but approval may take several weeks to complete.
Once approved, the corporation becomes a New York S corporation for the effective tax year. The business must file Form CT-3-S annually and stop filing Form CT-3. Shareholders report their distributive shares of income on their respective New York returns.
If the election is denied, the corporation continues to be taxed as a C corporation in New York. Any state tax filings must follow C corporation rules unless a new election is made correctly in a later year.
FAQs
Does filing a federal S corporation election automatically apply in New York?
No, New York requires a separate state election using Form CT-6. Federal approval alone does not change New York tax treatment.
Who must sign the New York Form CT-6 2017?
All shareholders holding stock on the filing date must sign. In some cases, former shareholders from earlier in the year may also need to consent.
What is the deadline for filing Form CT-6?
For calendar-year corporations, the deadline is generally March 15 of the year following the year the election is intended to take effect. New corporations have shorter deadlines tied to their start date.
Can Form CT-6 be filed late?
Late filing is only accepted if the IRS granted retroactive federal S corporation relief. New York generally follows the same retroactive period approved by the IRS.
How long does the election remain in effect?
The election remains in effect indefinitely until it is formally terminated or federal S corporation status ends.
What return is filed after approval?
Approved corporations must file Form CT-3-S each year instead of Form CT-3.
Can the election be revoked later?
Yes, the corporation may terminate the election by filing Form CT-6.1, provided it has obtained the required consent from its shareholders.
