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This entry was published on 2022-04-29
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SECTION 861
Pass-through entity tax election
Tax (TAX) CHAPTER 60, ARTICLE 24-A
§ 861. Pass-through entity tax election. (a) Any eligible partnership
or eligible S corporation shall be allowed to make an annual election to
be taxed pursuant to this article.

(b) In order to be effective, the annual election must be made (1) if
the entity is an S corporation, by any officer, manager or shareholder
of the S corporation who is authorized under the law of the state where
the corporation is incorporated or under the S corporation's
organizational documents to make the election and who represents to
having such authorization under penalty of perjury; or (2) if the entity
is not an S corporation, by any member, partner, owner, or other
individual with authority to bind the entity or sign returns pursuant to
section six hundred fifty-three of this chapter.

(c) The annual election must be made by the due date of the first
estimated payment under section eight hundred sixty-four of this article
and will take effect for the current taxable year. Only one election may
be made during each calendar year. An election made under this section
is irrevocable as of the due date.

(d) Special rules for electing S corporations. (1) An electing S
corporation must certify at the time of its election that all
shareholders are residents of New York for purposes of article
twenty-two of this chapter to be considered an electing resident S
corporation.

(2) If an electing S corporation does not make a certification under
paragraph one of this subsection at the time of its election, the
electing S corporation is automatically treated as an electing standard
S corporation.

(3) If an electing S corporation makes a certification under paragraph
one of this subsection to be an electing resident S corporation, this
certification is irrevocable as of the due date of the election.