What the New York Form CT-6 (2019) Is For
New York Form CT-6 (2019) is used by a corporation that has elected S corporation status at the federal level and wants New York State to recognize that status for state tax purposes. Federal S corporation treatment does not automatically apply in New York, so a separate state-level election is required.
When the election is approved, the corporation is treated as a New York S corporation and generally files pass-through entity returns instead of standard corporate franchise tax returns. Income, losses, and deductions flow through to shareholders, while the corporation itself is subject only to the fixed dollar minimum tax under New York law.
When You’d Use Form CT-6
A corporation would file New York Form CT-6 2019 when it already qualifies as a federal S corporation or has a federal S election pending and wants that status to apply for New York tax purposes. This applies to corporations formed in New York as well as foreign corporations that do business in the state.
The timing of the filing determines when the election takes effect. For calendar-year corporations, the form generally had to be filed by March 15, 2019, for the election to take effect for the 2019 tax year. Late filings typically result in the election becoming effective in the following tax year unless retroactive relief is granted.
Key Rules or Details for 2019
New York Form CT-6 2019 is only available to corporations that are treated as a federal S corporation (or have a pending federal S election) and are taxable under New York’s corporate franchise tax rules. The corporation must make the election, and it cannot be made by a qualified subchapter S subsidiary on its own. The election also requires consent from every shareholder who owns stock on the election date, and missing a required consent can delay or prevent approval. A complete copy of the CT6 form PDF should be kept with corporate records, allowing ownership details and signatures to be verified if questions arise.
Filing deadlines control when the election takes effect, and a late filing generally pushes the effective date to the following tax year unless New York accepts retroactive relief tied to federal approval. Once approved, New York S corporation status typically remains in place for future years until it is formally terminated using the state’s revocation process. Until the election is approved, the corporation should continue filing under its current New York classification and should not switch to S corporation filing prematurely. For 2019, the New York S corporation is generally subject to the fixed dollar minimum tax rather than tax on its net income.
Step-by-Step (High Level)
Step 1: Confirm Federal S Corporation Status
The corporation must confirm that it filed IRS Form 2553 or that its federal S election was pending at the time Form CT-6 was submitted. If the federal election had not yet been approved, the pending status needed to be disclosed on the form.
Step 2: Complete Corporate Information
The form requires the corporation’s legal name, exactly as it is registered with the New York Department of State. The employer identification number, mailing address, incorporation details, and the date the business began in New York must also be provided.
Step 3: Identify the Effective Tax Year
The corporation must indicate the tax year for which the election is intended to apply. If retroactive treatment was requested, the corporation needed to include documentation showing that the IRS granted federal relief for the same period.
Step 4: Provide Shareholder Information and Consents
All shareholders required to consent had to be listed on the form, along with identifying and ownership information. Each shareholder was required to sign to indicate consent to the New York S corporation election.
Step 5: Sign and Submit the Form
An authorized corporate officer was required to sign and date the form. For 2019, Form CT-6 could be submitted by fax or mail. A complete copy of the CT6 form PDF should be retained with the corporation’s permanent records.
Common Mistakes and How to Avoid Them
- Failing to obtain consent from all required shareholders: Identify every signer needed for the first tax year, including former shareholders who held stock during the initial months, and secure signatures before filing.
- Using a corporate name that does not precisely match state records: Copy the legal name from state filings exactly, including punctuation and spacing, and verify it before submitting.
- Filing after the deadline without understanding practical date consequences: Confirm the filing deadline for the intended tax year, and file early to avoid the election shifting to the following year.
- Requesting retroactive treatment without attaching IRS approval: Include any required federal approval documentation when asking for retroactive treatment to avoid denial for missing support.
- Entering incorrect shareholder identification numbers or filing prematurely: Verify shareholder IDs against records and wait for election approval before filing New York S corporation returns.
What Happens After You File
After Form CT-6 is submitted, the New York State Tax Department reviews the election to ensure all legal requirements are met. Approval is not automatic, and the department may request additional information if needed.
If the election is approved, the corporation receives written confirmation showing the effective date. Until that confirmation is received, the corporation should continue filing the tax returns required under its existing classification. Once approved, the corporation must file New York S corporation returns for the applicable tax year and comply with all related reporting requirements.
FAQs
Is New York Form CT-6 required if a corporation is already a federal S corporation?
Yes, Federal S corporation status does not automatically apply in New York, and a separate state election is required.
Can Form CT-6 be filed while the federal S election is still pending?
Yes, the form may be filed while the federal election is pending; however, the 'awaiting' status must be disclosed, and proof of federal approval must be provided once received.
What happens if Form CT-6 is filed late?
A late filing generally causes the election to take effect in the following tax year unless the corporation qualifies for retroactive relief.
Does the New York S corporation election need to be renewed each year?
No, once approved, the election remains in effect until it is formally revoked.
Can a subsidiary file its own New York S corporation election?
No, qualified subchapter S subsidiaries cannot file independently, and the parent corporation must make the election.
How is the New York S corporation election terminated?
The election is terminated by filing the appropriate revocation form with the New York State Department of Taxation and Finance.
