Form REV-976 Election Not To Be Taxed as a Pennsylvania S Corporation (REV-976)

65 In addition each resident shareholder is subject to Pennsylvania personal income tax on each shareholder s pro rata share of the S corporation income whether dis tributed or not Each nonresident shareholder is subject to tax on the shareholder s personal income from sources within PA A PENNSYLVANIA S CORPORATION A Pennsylvania S corporation with taxable income from sources within PA is jointly liable with its nonresident shareholders for personal income tax on this income It is authorized and required to collect this tax from its nonresident shareholders and remit the tax to the PA Department of Revenue Use PA 40ESR (F/C) to make the first nonresident withholding payment Thereafter the department will provide pre printed PA 40ES (P/S) forms The PA 40ESR (F/C) form can be downloaded from the department s website at www revenue state pa us or ordered by telephone at 1 888 PATAXES (728 2937) A qualified subchapter S subsidiary may not be a Pennsylvania S corporation or it may elect not to be a Pennsylvania S corporation separate from the parent cor poration If a qualified subchapter S subsidiary and/or par ent of a qualified subchapter S subsidiary does not desire to be taxed as a Pennsylvania S corporation the parent must file an election not to be taxed as a Pennsylvania Acknowledgment of Receipt of Election Any federal subchapter S corporation doing business in Pennsylvania or registered to do business in PA that does not make this election will be taxed as a Pennsylvania S corporation and will be required to file both PA Corporate Tax Report RCT 101 and PA S Corporation/Partnership Information Return PA 20S/PA Any federal subchapter S corporation that does not make this election and which does not do business nor is reg istered to do business in PA but has a PA resident share holder will be taxed as a Pennsylvania S corporation and will be required to file PA S Corporation/Partnership Information Return PA 20S/PA 65 In addition each res ident shareholder will be subject to Pennsylvania person al income tax on each shareholder s pro rata share of the S corporation income whether distributed or not Approximately 90 days from the receipt of this election the Department of Revenue will send a confirmation of approval of the election to the taxpayer at the address shown on the election If the confirmation is not received within 90 days the taxpayer should call the Bureau of Corporation Taxes at 717 705 6133 to verify It is the sole responsibility of the taxpayer to provide timely proof of BUREAU OF CORPORATION TAXES Corporation is not subject to PA corporate taxes; election is for PA resident shareholder purposes only Off DO NOT SEND AS AN ATTACHMENT TO ELECTION NOT TO BE TAXED AS A PENNSYLVANIA S CORPORATION Federal subchapter S corporations are no longer required to file the Pennsylvania S Corporation Election and Shareholders Consent (REV 1640) in order to be granted Pennsylvania S corporation status Effective for tax years beginning after Dec 31 2005 any corporation with a valid federal subchapter S corporation election will auto matically be a Pennsylvania S corporation Any federal subchapter S corporation that does not desire to be a Pennsylvania S corporation must file an Election Not to be Taxed as a Pennsylvania S Corporation (REV 976) on or before the due date or extended due date of the report for the first tax period in which the election is to be in effect This election must be signed by 100 percent of the shareholders of the S corporation and once made cannot be revoked for five years Filing the Election For a federal subchapter S corporation conducting busi ness in Pennsylvania that is required to file PA Corporate Tax Report RCT 101: The due date for filing the Election Not to be Taxed as a Pennsylvania S Corporation (REV 976) is the due date or the extended due date of the PA corporate tax report for the first year for which the election is to be in effect For a federal subchapter S corporation that is not required to file PA Corporate Tax Report RCT 101 (does not do business in PA and is not registered to do busi ness in PA): The due date for filing the Election Not to be Taxed as a Pennsylvania S Corporation (REV 976) is 30 days after the due date or the extended due date of the federal return These corporations must check the box indicating Corporation is not subject to PA Corporate Taxes; election is for PA resident Shareholder purposes only GENERAL INSTRUCTIONS HARRISBURG PA 17128 0705 In the case of a federal subchapter S corporation not required to file PA Corporate Tax Report RCT 101 (does not do business in PA and is not registered to do business in PA) the Election Not to be Taxed as a Pennsylvania S Corporation (REV 976) must be filed on or before the 15th day of the fourth month following the end of the first tax period for which the election is to be in effect (the due date of PA Corporate Tax Report RCT 101 if the corpora tion had been required to file this report) mailing (i e a certified mail receipt) PA DEPARTMENT OF REVENUE PA Resident Shareholders of Subchapter S Corporations in Another State PA S UNIT PO BOX 280705 PO BOX 280705 ELECTION NOT TO BE TAXED AS Qualified Subchapter S Subsidiaries REV 976 (05 12) S corporation for itself and all qualified subchapter S subsidiaries The corporation must attach a schedule to the election identifying the name address Revenue ID and federal employer identification number of each qualified subchapter S subsidiary owned by the corporation and doing business in Pennsylvania The Election Not to be Taxed as a Pennsylvania S Corporation (REV 976) must be signed by all sharehold ers on the date of the election and sent via certified mail to: THE PA CORPORATE TAX REPORT