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The CT-3-S form is a crucial document for New York S corporations, specifically designed to fulfill the requirements of the New York State Franchise Tax. This form assists corporations in reporting their income, calculating any tax liability, and claiming applicable credits. Filers begin by providing essential information such as their tax period, Employer Identification Number (EIN), and business address. Within the form, companies must detail their financial performance by including data from the federal Form 1120S, which covers various income categories such as ordinary business income, rental income, and interest earned. There's also a section dedicated to apportionment factors, helping corporations accurately allocate income based on their business activities within New York and beyond. Additionally, the form guides users on possible tax credits, ensuring that they can take full advantage of available options. Understanding the CT-3-S form is vital for small business owners looking to ensure compliance while maximizing their benefits under state tax laws.

Ct 3 S Example

Department of Taxation and Finance

CT-3-S

New York S Corporation Franchise Tax Return

Tax Law – Articles 9-A and 22

 

All filers must enter tax period:

 

Final return (see instructions)

Amended return

 

 

beginning

 

ending

Employer identification number (EIN)

File number

Business telephone number

()

If you claim an overpayment,

mark an X in the box ...................................

 

 

Legal name of corporation

 

 

 

 

 

 

 

 

 

 

Trade name/DBA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mailing address

 

 

 

 

 

 

 

 

 

 

State or country of incorporation

 

 

 

 

 

Care of (c/o)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Number and street or PO box

 

 

 

 

 

 

 

 

 

Date of incorporation

Foreign corporations: date began business in NYS

 

 

 

 

 

 

 

 

 

 

 

City

 

U.S. state/Canadian province

ZIP/Postal code

Country (if not United States)

For office use only

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NAICS business code number (from NYS Pub 910)

If you need to update your address or

 

 

New York S election effective date

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

phone information for corporation tax,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NYS principal business activity

 

 

 

 

 

or other tax types, you can do so online.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See Business information in Form CT-1.

 

 

 

 

 

Has the corporation revoked its election to be treated as a New York

S corporation?

 

Number of shareholders

 

 

 

 

 

Yes

 

 

No

 

 

If Yes, enter effective date:

 

 

 

 

 

 

 

 

 

 

A Pay amount shown on Part 2, line 46. Make payable to: New York State

 

Corporation Tax

 

 

Payment enclosed

 

 

Attach your payment here. Detach all check stubs. (See instructions for details.)

 

 

A

 

 

 

 

 

You must attach a copy of the following: (1) federal Form 1120S as filed; (2) Form CT-34-SH; (3) Form CT-60, if applicable;

(4) any applicable credit claim forms, (5) Form CT-225, if applicable; and (6) Form CT-227, if applicable.

B

If you filed a return(s) other than federal Form 1120S, enter the form number(s) here

 

 

C

Enter your business apportionment factor (from Part 3, line 56)

 

D

Did the S corporation make an IRC section 338 or 453 election?

Yes

E

Did this entity have an interest in real property located in New York State during the last three years?

Yes

F

Has there been a transfer or acquisition of a controlling interest in this entity during the last three years?

Yes

G

 

 

If the IRS has completed an audit of any of your returns within the last five years, list years....

 

 

No

No

No

HIf this return is for a New York S termination year, mark an X in the appropriate box to indicate which method of accounting was   used for the New York S short year (see New York S corporation termination year in instructions)

Normal accounting rules

Daily pro rata allocation

I Mark an X in the box if you are filing Form CT-3-S as a result of the mandatory New York S election of Tax Law, Article 22, section 660(i)..

J

If you are one of the following, mark an X in one box:

QETC

Qualified New York manufacturer

K

If you filed as a New York C corporation in previous years, enter the last year filed as such

 

 

 

 

.........................................

 

 

 

 

 

 

 

L

Are you a residual interest holder in a real estate mortgage investment conduit (REMIC)?

Yes

No

M

Enter the amount, if any, of tax paid from federal Form 1120S, line 22c

 

 

 

 

 

 

 

 

 

 

 

NIf you include the activities of a qualified subchapter S subsidiary (QSSS), partnership, single member limited liability

  company (SMLLC), or DISC in this return, or have other affiliated entities, mark an X in the box and attach Form CT-60 ......

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Page 2 of 6  CT-3-S (2021)

OWere you required to report any nonqualified deferred compensation, as required by IRC § 457A, on your

2021 federal return? (see instructions)

Yes

No

PIf you are a foreign corporation computing your tax taking into account only your distributive shares from multiple limited

  partnerships, mark an X in the box ...........................................................................................................................................

Q If you made a voluntary contribution to any available funds, mark an X in the box and attach Form CT-227 ..............................

Part 1 – Federal Form 1120S information

Provide the information for lines 1 through 10 from the corresponding lines on your federal Form 1120S, Schedule K, total amount column. (Show any negative amounts with a minus (-) sign; do not use parentheses or brackets.)

1Ordinary business income or loss...................................................................................................

2Net rental real estate income or loss...............................................................................................

3Other net rental income or loss.......................................................................................................

4 Interest income................................................................................................................................

5Ordinary dividends........................................................................................................................... 6 Royalties.......................................................................................................................................... 7 Net short-term capital gain or loss................................................................................................... 8 Net long-term capital gain or loss.................................................................................................... 9 Net section 1231 gain or loss..........................................................................................................

10Other income or loss.......................................................................................................................

11Loans to shareholders (from federal Form 1120S, Schedule L, line 7, columns b and d)

  Beginning of tax year

 

End of tax year

12Total assets (from federal Form 1120S, Schedule L, line 15, columns b and d)

  Beginning of tax year

 

End of tax year

13Loans from shareholders (from federal Form 1120S, Schedule L, line 19, columns b and d)

  Beginning of tax year

 

End of tax year

1

2

3

4

5

6

7

8

9

10

Provide the information for lines 14 through 21 from the corresponding lines on your federal Form 1120S, Schedule M-2.

(Show any negative amounts with a minus (-) sign; do not use parentheses or brackets.)

14Balance at beginning of

tax year................................

15Ordinary income from federal

Form 1120S, page 1, line 21..

16Other additions........................

17Loss from federal Form 1120S,

page 1, line 21.....................

18Other reductions......................

19Combine lines 14 through 18...

20Distributions..............................

21Balance at end of tax year.

Subtract line 20 from line 19...

A

Accumulated adjustments

account

B

Shareholders’

undistributed taxable

income previously taxed

C

Accumulated earnings

and profits

D

Other adjustments

account

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CT-3-S (2021) 

Page 3 of 6

 

 

 

 

 

 

Part 2 – Computation of tax (see instructions)

 

 

 

 

 

 

 

 

Have you been convicted of an offense, or are you an owner of an entity convicted of an offense, defined in

 

 

  New York State Penal Law Article 200 or 496, or section 195.20? (see Form CT-1, mark an X in one box)

 

Yes

 

 

No

 

 

 

 

You must enter an amount on line 22; if none, enter 0.

 

 

 

 

 

22

New York receipts (from Part 3, line 55, column A (New York State))

22

 

 

 

 

23

Fixed dollar minimum tax (see instructions)

23

 

 

 

 

24

Recapture of tax credits (see instructions)

24

 

 

 

 

25

.............................................................Total tax after recapture of tax credits (add lines 23 and 24)

25

 

 

 

 

26

Special additional mortgage recording tax credit (current year or deferred; see instructions)

26

 

 

 

 

27

.......................................................................Tax due after tax credits (subtract line 26 from line 25)

27

 

 

 

 

First installment of estimated tax for the next tax period:

28

Enter amount from line 27

28

29

If you filed a request for extension, enter amount from Form CT-5.4, line 2

29

30If you did not file Form CT-5.4 and line 28 is over $1,000, enter 25% (.25) of line 28.

 

  Otherwise enter 0

 

 

 

30

 

 

 

31

............................................................................................................Add line 28 and line 29 or 30

 

 

31

 

Composition of prepayments (see instructions):

Date paid

Amount

32

Mandatory first installment

32

 

 

 

 

 

33

Second installment from Form CT-400

33

 

 

 

 

 

34

Third installment from Form CT-400

34

 

 

 

 

 

35

Fourth installment from Form CT-400

35

 

 

 

 

 

36Payment with extension request from

37

  Form CT-5.4

36

 

 

 

 

 

 

 

Overpayment credited from prior years (see instructions)

37

 

 

 

 

 

 

38

......................................................................................Total prepayments (add lines 32 through 37)

 

 

 

 

38

 

 

39

...........................................Balance (subtract line 38 from line 31; if line 38 is larger than line 31, enter 0)

 

 

40

Estimated tax penalty (see instructions; mark an X in the box if Form CT-222 is attached)

 

...............

40

 

 

41

Interest on late payment (see instructions)

 

 

 

 

41

 

 

42

Late filing and late payment penalties (see instructions)

 

 

 

 

42

 

 

43

........................................................................................................Balance (add lines 39 through 42)

 

 

 

 

43

 

 

Voluntary gifts/contributions

 

 

 

 

 

 

 

 

44

Total voluntary gifts/contributions (from Form CT-227, Part 2, line 1)

 

 

 

 

44

 

 

45

Add lines 31, 40, 41, 42, and 44

 

 

 

 

45

 

 

46Balance due (If line 38 is less than line 45, subtract line 38 from line 45 and enter here. This is the amount

  due; enter your payment amount on line A on page 1.)

46

47Overpayment (If line 38 is more than line 45, subtract line 45 from line 38 and enter here. This is the

 

  amount of your overpayment; see instructions.)

47

48

Amount of overpayment to be credited to next period (see instructions)

48

49

Refund of overpayment (subtract line 48 from line 47; see instructions)

49

50

Refund of unused special additional mortgage recording tax credit (see instructions)

50

51Amount of special additional mortgage recording tax credit to be applied as an overpayment to

  next period

51

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Page 4 of 6  CT-3-S (2021)

Part 3 – Computation of business apportionment factor (see instructions)

Mark an X in this box only if you have no receipts required to be included in the denominator of the apportionment factor (see instr.)....

A – New York State

B – Everywhere

Section 210-A.2

 

1

Sales of tangible personal property 

1

2

Sales of electricity 

2

3

...................................................Net gains from sales of real property 

3

Section 210-A.3

 

4

Rentals of real and tangible personal property 

4

5

Royalties from patents, copyrights, trademarks, and similar intangible

5

6

  personal property 

Sales of rights for certain closed-circuit and cable TV transmissions

 

 

  of an event 

6

Section 210-A.4

 

7

Sale, licensing, or granting access to digital products 

7

Section 210-A.5(a)(1)Fixed percentage method for qualified financial instruments (QFIs)

8 To make this irrevocable election, mark an X in the box  (see instructions)

8

Section 210-A.5(a)(2)Mark an X in each box that is applicable (see line 8 instructions)

Section 210-A.5(a)(2)(A)

 

 

9

Interest from loans secured by real property 

 

 

10

Net gains from sales of loans secured by real property 

 

 

11

Interest from loans not secured by real property (QFI

 

.............. )

12Net gains from sales of loans not secured by real property  (QFI  ).

Section 210-A.5(a)(2)(B) (QFI  )

13

Interest from federal debt

14

 

 

15

Interest from NYS and its political subdivisions debt 

16

Net gains from federal, NYS, and NYS political subdivisions debt 

17

Interest from other states and their political subdivisions debt 

18

Net gains from other states and their political subdivisions debt  

Section 210-A.5(a)(2)(C) (QFI

 )

19Interest from asset-backed securities and other government agency debt.

20Net gains from government agency debt or asset-backed securities

21

  sold through an exchange 

Net gains from all other asset-backed securities 

Section 210-A.5(a)(2)(D) (QFI

 )

22

Interest from corporate bonds 

23Net gains from corporate bonds sold through broker/dealer or

  licensed exchange ............................................................................

24 Net gains from other corporate bonds .................................................

Section 210-A.5(a)(2)(E)

25Net interest from reverse repurchase and securities borrowing agreements.

Section 210-A.5(a)(2)(F)

26

Net interest from federal funds 

Section 210-A.5(a)(2)(I) (QFI

 )

27

Net income from sales of physical commodities 

Section 210-A.5(a)(2)(J) (QFI

 )

28

Marked to market net gains 

Section 210-A.5(a)(2)(H) (QFI

 )

29

210-A.5(a)(2)(G) (QFI

 )

Interest from other financial instruments 

30

Net gains and other income from other financial instruments 

9

10

11

12

13

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

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CT-3-S (2021)  Page 5 of 6

 

 

 

 

 

 

Part 3 – Computation of business apportionment factor (continued)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

A – New York State

 

 

B – Everywhere

Section 210-A.5(b)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

31

Brokerage commissions 

31

 

 

 

 

 

 

32

Margin interest earned on behalf of brokerage accounts 

32

 

 

 

 

 

 

33

Fees for advisory services for underwriting or management of underwriting .

33

 

 

 

 

 

 

34

Receipts from primary spread of selling concessions 

34

 

 

 

 

 

 

35

Receipts from account maintenance fees 

35

 

 

 

 

 

 

36

Fees for management or advisory services 

36

 

 

 

 

 

 

37

...................................................Interest from an affiliated corporation 

37

 

 

 

 

 

 

Section 210-A.5(c)

 

 

 

 

 

 

 

38

Interest, fees, and penalties from credit cards 

38

 

 

 

 

 

 

39

Service charges and fees from credit cards 

39

 

 

 

 

 

 

40

Receipts from merchant discounts 

40

 

 

 

 

 

 

41

Receipts from credit card authorizations and settlement processing ...

41

 

 

 

 

 

 

42

..................................................Other credit card processing receipts 

42

 

 

 

 

 

 

Section 210-A.5(d)

 

 

 

 

 

 

 

43

Receipts from certain services to investment companies 

43

 

 

 

 

 

 

Section 210-A.5-a

 

 

 

 

 

 

 

44

Global intangible low-taxed income

44

 

0

00

 

 

 

Section 210-A.6

 

 

 

 

 

 

 

45

Receipts from railroad and trucking business 

45

 

 

 

 

 

 

Section 210-A.6-a

 

 

 

 

 

 

 

46

Receipts from the operation of vessels 

46

 

 

 

 

 

 

Section 210-A.7

 

 

 

 

 

 

 

47

Receipts from air freight forwarding 

47

 

 

 

 

 

 

48

..................................................Receipts from other aviation services 

48

 

 

 

 

 

 

Section 210-A.8

 

 

 

 

 

 

 

49

Advertising in newspapers or periodicals 

49

 

 

 

 

 

 

50

Advertising on television or radio 

50

 

 

 

 

 

 

51

Advertising via other means 

51

 

 

 

 

 

 

Section 210-A.9

 

 

 

 

 

 

 

52

Transportation or transmission of gas through pipes 

52

 

 

 

 

 

 

Section 210-A.10

 

 

 

 

 

 

 

53

Receipts from other services/activities not specified 

53

 

 

 

 

 

 

Section 210-A.11

 

 

 

 

 

 

 

54

Discretionary adjustments 

54

 

 

 

 

 

 

Total receipts

 

 

 

 

 

 

 

55

Add lines 1 through 54 in columns A and B 

55

 

 

 

 

 

 

Calculation of business apportionment factor

56New York State business apportionment factor (divide line 55, column A by line 55, column B and enter

  the resulting decimal here; round to the sixth decimal place after the decimal point; see instructions) 

56

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Page 6 of 6  CT-3-S (2021)

Amended return information

If filing an amended return, mark an X in the box for any items that apply and attach documentation.

Final federal determination

If marked, enter date of determination:

Third – party

Yes

 

No

 

 

Designee’s name (print)

 

 

 

 

 

 

 

 

Designee’s phone number

 

 

 

 

 

 

 

 

 

 

 

 

(

 

)

 

designee

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Designee’s email address

 

 

 

 

 

 

 

 

 

 

 

 

(see instructions)

 

 

 

 

 

 

 

 

 

 

PIN

 

Certification: I

certify that this return and any attachments are to the best of my knowledge and belief true, correct,

and

complete.

Authorized

 

Printed name of authorized person

 

Signature of authorized person

 

 

 

Official title

 

 

person

 

Email address of authorized person

 

 

 

Telephone number

 

 

 

Date

 

 

 

 

 

 

 

 

 

 

 

 

 

(

)

 

 

 

 

 

 

 

Paid

 

Firm’s name (or yours if self-employed)

 

 

Firm’s

EIN

 

 

 

 

 

Preparer’s PTIN or SSN

preparer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

use

 

Signature of individual preparing this return

Address

 

 

City

 

 

State

ZIP code

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

only

 

 

 

 

 

 

 

 

 

 

 

Email address of individual preparing this return

 

 

Preparer’s NYTPRIN or

Excl. code

Date

 

(see instr.)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See instructions for where to file.

440006210094

Form Characteristics

Fact Name Description
Purpose The CT-3-S form is used by New York S corporations to file their franchise taxes as outlined in Articles 9-A and 22 of the New York State Tax Law.
Tax Period Every filer must include the tax period on the form, and they have the option to indicate if it is a final or amended return.
EIN Requirement All filers must provide their Employer Identification Number (EIN) on the form to ensure proper identification and processing.
Documentation Filing requires attaching a copy of federal Form 1120S, among other documents, to verify the corporation's financial details.
Revocation Check The form includes a question to confirm if the corporation has revoked its election to be treated as an S corporation.
Filing Deadline Corporations must file the CT-3-S by the 15th day of the third month following the end of their tax year.

Guidelines on Utilizing Ct 3 S

Filling out the CT-3-S form is an essential process for New York S Corporations. This form is utilized to report franchise taxes and to ensure compliance with state tax laws. After completing this form, it will need to be submitted along with any required payments and additional documentation to the New York State Department of Taxation and Finance.

  1. Enter the tax period, indicating whether this is a final or amended return.
  2. Input your Employer Identification Number (EIN) and file number.
  3. Provide your business telephone number.
  4. Indicate if you are claiming an overpayment by marking the box provided.
  5. Fill in the legal name of the corporation and the trade name or DBA (Doing Business As).
  6. Complete the mailing address, including the state or country of incorporation, the care of section if necessary, street number, and PO box.
  7. Record the date of incorporation and, for foreign corporations, the date business began in New York State.
  8. Fill out the NAICS business code number from NYS Publication 910.
  9. Check the box if the corporation revoked its New York S corporation election and provide the effective date if applicable.
  10. Enter the amount shown on Part 2, line 46, and attach your payment accordingly.
  11. Attach a copy of federal Form 1120S and other relevant forms, as listed in the instructions.
  12. Provide information from your federal Form 1120S, Schedule K for lines 1 through 10, and ensure to include any negative amounts with a minus (-) sign.
  13. Move on to lines 11 to 21 for the details from federal Form 1120S, Schedule M-2, making sure to subtract distributions from the balance at the end of the tax year.
  14. In Part 2, compute your tax by entering required details such as New York receipts and other tax-related entries.
  15. For Part 3, compute your business apportionment factor by completing the sales and receipts sections accurately.
  16. Finally, review all entries for accuracy, sign and date the form, and submit it to the appropriate tax authority.

What You Should Know About This Form

What is the CT-3-S form and who should file it?

The CT-3-S form is the New York S Corporation Franchise Tax Return. Businesses that have elected to be treated as S corporations for tax purposes and operate in New York State must file this form. If your corporation has made an S election and conducts business in New York, it is essential to fill out this form accurately for each tax period you are filing for. Whether this is your final return or an amended return, the form still requires detailed information about your corporation's income, deductions, and other financial activities.

What information do I need to complete the CT-3-S form?

You will need various details, including your corporation's legal name, employer identification number (EIN), and business address. Additionally, input the dates for the tax period, whether this is a final or amended return, and the number of shareholders. You must also provide information from your federal Form 1120S and include calculations regarding your business receipts in New York State. Ensure to attach required documents such as federal Form 1120S, and any other applicable credit claim forms as specified in the instructions.

How do I report income and tax liability on the CT-3-S form?

Income is reported based on the lines provided on the CT-3-S form, which align with corresponding lines from your federal Form 1120S. You will enter amounts for ordinary business income, any rental income, interest, dividends, and other income types. For tax liability, calculate your total tax by adding any fixed dollar minimum tax and any recapture of tax credits. After accounting for tax credits, penalties, and any prepayments made, the final amount due or refund owed will be reflected on the form. Be diligent in ensuring that all amounts are calculated and reported correctly to avoid issues.

What do I do if my corporation is no longer an S corporation?

If your corporation has revoked its S corporation election or no longer meets the requirements to be treated as such, you must indicate this on the CT-3-S form. Specifically, mark "Yes" in the designated question section and provide the effective date of the revocation. After this, you may need to switch to filing a different tax form that corresponds to the new tax status of your corporation, typically the CT-3 form for New York C corporations. Staying compliant with tax regulations is crucial, so consider consulting a tax professional if you've undergone significant changes.

Common mistakes

When it comes to filling out the CT-3-S form for New York S Corporations, several common mistakes can inadvertently lead to complications. Awareness of these pitfalls can save time and frustration, ensuring a smoother filing process.

One of the most frequent errors is neglecting to provide accurate and complete information about the corporation's details. This includes the legal name, trade name, and mailing address. Omissions or inaccuracies can delay processing and may even lead to rejection of the form. Always double-check that every field is filled out correctly.

Another mistake is failing to attach necessary documents. The CT-3-S form requires several attachments, including a copy of the federal Form 1120S and relevant credit claim forms. Not including these can result in significant delays. It’s important to gather all required documents ahead of time to ensure a complete submission.

Additionally, improper calculation of tax amounts is a common issue. This error often arises from miscalculating New York receipts or misunderstanding the tax credits available. Review computation instructions carefully to avoid misreporting tax liability. Numerical mistakes might seem minor, but they can have serious financial repercussions.

Finally, many filers neglect to sign and date the return. This might seem like a small detail, but it is crucial. Without a signature, the return may be considered incomplete, resulting in penalties or delays. Taking the time to review the entire form, including all signatures, can help avoid unnecessary headaches.

By being mindful of these four common mistakes when completing the CT-3-S form, you can enhance your filing process and minimize potential issues. Remember, careful attention to detail will serve you well in navigating tax responsibilities.

Documents used along the form

The CT-3-S form is a crucial document for New York S corporations, detailing the franchise tax obligations of these businesses. There are several other forms that often accompany the CT-3-S to ensure compliance with tax laws and proper reporting of financial performance. Below are four commonly used forms that are typically submitted alongside the CT-3-S form.

  • Federal Form 1120S: This is the U.S. Income Tax Return for an S Corporation. It provides the IRS with an overview of an S corporation's income, deductions, and tax liabilities over the tax year. It is necessary to accompany the CT-3-S form to give federal tax context to the state return.
  • Form CT-34-SH: This is the New York S Corporation Shareholder’s Information Schedule. It details each shareholder's allocation of the S corporation's income, losses, and credits. This form is essential for informing both the corporation and the shareholders of their respective tax responsibilities.
  • Form CT-60: This document is used by S corporations that have made a qualified subchapter S subsidiary (QSSS) election. It allows corporations to report the tax details related to the subsidiary's operations and ensure compliance in terms of taxation and credits.
  • Form CT-225: This is used to claim the New York State Investment Tax Credit. It helps businesses offset their tax liability based on certain investments they have made. If applicable, attaching this form is crucial for receiving the appropriate tax credits.

Each of these forms plays an important role in ensuring that an S corporation meets both state and federal tax obligations. Properly completing and submitting all required documentation can help prevent penalties and ensure accurate tax assessments.

Similar forms

  • Form 1120S: This is the U.S. Income Tax Return for an S Corporation. Like the CT-3-S form, it reports the income, gains, losses, deductions, and credits of the corporation, with a focus on avoiding double taxation.
  • Form CT-34-SH: This form is used for the New York S Corporation Shareholder Information. It provides a checklist similar to the CT-3-S, ensuring all shareholder information aligns with required specifications.
  • Form CT-60: This form deals with the New York S Corporation credit for taxes paid to other states. Like the CT-3-S, it's essential for ensuring proper tax liability reporting.
  • Form CT-225: This is the New York State Empire Zone Business Certification form. Both this and the CT-3-S require specific business activity details to qualify for applicable credits.
  • Form CT-227: This form pertains to the Voluntary Contributions to Environmental and Other Funds. The CT-3-S includes sections that encompass voluntary contributions, reflecting similar intent.
  • Form CT-400: This form is for the Estimated Tax for Corporations. Similar to the CT-3-S, it provides essential calculations to ensure ongoing compliance with tax obligations.
  • Form CT-1: This is the New York Corporate Taxpayer Information form. Like the CT-3-S, it gathers foundational corporate information to streamline tax-related processes.
  • Federal Form 1065: This is used by partnerships to report income, deductions, gains, and losses. The CT-3-S shares this reporting structure, emphasizing income distribution to shareholders.
  • Form 990: This is the Return of Organization Exempt from Income Tax. Unlike CT-3-S, it is for non-profits, but both require comprehensive financial data from the filing entity.

Understanding these forms can help you navigate the complexities of tax reporting and compliance more effectively.

Dos and Don'ts

When filling out the CT-3-S form, it’s important to make informed decisions to avoid complications. Here are seven important dos and don’ts to consider:

  • Do ensure that you enter the correct tax period for your submission.
  • Don’t forget to mark if this is a final or amended return.
  • Do use your Employer Identification Number (EIN) accurately throughout the form.
  • Don’t neglect to provide a complete mailing address, including your state, zip code, and country if applicable.
  • Do attach all required documentation, such as federal Form 1120S and any applicable credit claim forms.
  • Don’t skip over questions regarding your corporation’s status, especially those about revocations of S corporation elections.
  • Do double-check your calculations before submitting to ensure accuracy and avoid penalties.

Misconceptions

There are several misconceptions about the CT-3-S form that can lead to confusion. Understanding these misconceptions can help ensure that you file correctly and avoid potential issues.

  • Misconception 1: The CT-3-S form is only for New York-based businesses.
  • This is not correct. The form can be used by any corporation that has made an S corporation election and has income sourced from New York.

  • Misconception 2: You do not need to attach any documents when filing.
  • This is false. You must attach various documents, including federal Form 1120S and any applicable credit claim forms.

  • Misconception 3: Once you file the CT-3-S, you cannot change anything.
  • You can amend your return if necessary. Just follow the proper procedures for filing an amended return.

  • Misconception 4: Only large corporations need to file this form.
  • All corporations that meet the requirements to be treated as S corporations in New York, regardless of size, must file the CT-3-S.

  • Misconception 5: You can ignore the deadlines for filing this form.
  • Timely filing is essential. Missing deadlines can result in penalties and interest.

  • Misconception 6: Filing the CT-3-S guarantees a tax refund.
  • Filing does not guarantee a refund. Your tax liability must be assessed properly to determine if you are due a refund.

  • Misconception 7: You do not need to report income from foreign sources.
  • You must report all income, including foreign income, as it applies to your S corporation status.

  • Misconception 8: All S corporations qualify for tax credits without documentation.
  • This is incorrect. You must provide specific forms and documentation to claim any available tax credits.

  • Misconception 9: The CT-3-S form is the same as the federal Form 1120S.
  • While similar, the CT-3-S has specific requirements and questions related to New York State tax law that differ from the federal form.

Key takeaways

Here are key takeaways regarding the CT-3-S form for New York S Corporation Franchise Tax Return:

  • Eligibility Requirements: Ensure your corporation qualifies as an S corporation in New York before completing the form.
  • Filing Options: Indicate whether this is a final return, amended return, or a return for a specific tax period.
  • Required Documentation: Attach necessary documents including federal Form 1120S and Form CT-34-SH. Review the full list of attachments specified in the instructions.
  • Accurate Information: Carefully enter details such as the employer identification number (EIN), legal name, and business address to avoid processing delays.
  • Tax Estimation: Compute your tax accurately. Use the figures from federal Form 1120S to ensure consistency.
  • Payment Instructions: If there is a balance due, your payment should be attached to the form and made out to New York State Corporation Tax.
  • Review Deadlines: Be mindful of filing deadlines to avoid penalties. Ensure all required fields and signatures are complete.