Oklahoma Small Business Corporate Tax Return Packet (form and instructions)

Small Business Corporate Tax Return Packet (form and instructions)
2023 Form 512-S Oklahoma Small Business Corporation Income and Franchise Tax Return Packet & Instructions
2023 Oklahoma
Small Business
Corporation
Income and Franchise
Tax Forms and
Instructions
This packet contains:
	 •	 Instructions for completing the Oklahoma Small Business Corporation Income and Franchise Tax
Return Form 512-S
	 •	 Small Business Corporation Income and Franchise Tax Return Form 512-S
	 •	 Supplemental Schedule for Form 512-S, Part 5 Form 512-S-SUP
	 •	 Nonresident Shareholder Agreement Income Tax Form 512-SA
Filing date:
	 •	 Your Oklahoma return is due 30 days after the due date of your federal return.
For assistance:
	 •	 See page 17 for methods of contacting the Oklahoma Tax Commission (OTC).
NOTE:
	
•	Pursuant to OAC 710:50-17-1, the Oklahoma Small Business Corporation Income and Franchise
Tax Return must be filed electronically.

2023 OKLAHOMA SMALL BUSINESS CORPORATION TAX PACKET
TABLE OF CONTENTS
General Filing Information: Income Tax and Franchise Tax.................................................................................................3-4
General Filing Information: Income Tax................................................................................................................................4-5
General Filing Information: Franchise Tax............................................................................................................................5-6
Amended Returns...................................................................................................................................................................5
Line by Line Instructions: Income Tax................................................................................................................................6-14
Line by Line Instructions: Franchise Tax..........................................................................................................................14-16
Line by Line Instructions: Income Tax and Franchise Tax.....................................................................................................16
When You Are Finished.........................................................................................................................................................16
Direct Deposit Information.....................................................................................................................................................17
Contact Information and Assistance......................................................................................................................................17

COMMON ABBREVIATIONS FOUND IN THIS PACKET
FEIN -	 Federal Employer Identification Number
IRC	 -	 Internal Revenue Code
IRS	 -	 Internal Revenue Service
OS	 -	 Oklahoma Statutes
OTC	-	 Oklahoma Tax Commission
PTE	 -	 Pass-Through Entity
Sec.	-	 Section(s)

HELPFUL HINTS
• Refunds must be made by direct deposit. Failure to supply direct deposit information will delay the processing of the
refund.
• Check your FEIN on all forms and schedules.
•	 The request for your FEIN is authorized by Section 405, Title 42, of the United States Code. You must provide this in­
formation. It will be used to establish your identity for tax purposes only. Important: If you do not have a FEIN, you may
obtain one online at irs.gov or by calling 800.829.4933. If you would prefer to file a paper application, contact the IRS
and request Form SS-4.
•	 Check your calculations carefully.
• Fiscal year dates are a common problem. If you file based on a fiscal year, please list dates on top of form where
indicated.
• Provide a complete copy of your federal return, and all required schedules. Failure to do so can slow down the
processing of your return.
•	 When complete, make copies of all the documents for your records.
•	 Don’t forget to sign your tax returns.
•	 The OTC is not required to give actual notice to taxpayers of changes in any state tax law.	

	

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WHAT’S NEW IN THE 2023 OKLAHOMA 512-S TAX PACKET?
• The Credit for Strategic Industrial Development Enhancement (SIDE) Projects was added to the Form 511-CR. To obtain
Form 511-CR, visit tax.ok.gov.
• The Credit for Qualified Clean-Burning Motor Vehicle Fuel Property was expanded to include equipment installed to
modify a motor vehicle that is propelled by a hydrogen fuel cell, effective for property placed in service on or after July 1,
2023. The credit may be claimed on Form 511-CR. To obtain Form 511-CR, visit tax.ok.gov.
• A deduction for bonus depreciation on qualified property or qualified improvement property covered under Section 168 of
the Internal Revenue Code was added. See Form 512-S, Part 2, Line 14, Column B.

GENERAL FILING INFORMATION: INCOME TAX AND FRANCHISE TAX
WHO MUST FILE
All corporations having an election in effect under Subchapter S of the IRC engaged in business or deriving income from
property located in Oklahoma and that are required to file a federal income tax return using Form 1120-S, must file an
Oklahoma income tax return on Form 512-S. Do not use Form 512.
A complete copy of the federal return must be provided with the Oklahoma income tax return. For S corporations not
required to complete the federal Schedules L and M-1, copies of the balance sheets from their financial statement must
be provided. Failure to provide the required documentation may cause a delay in the processing of the S corporation’s
income tax return as well as the income tax returns of its shareholders.
Every corporation organized under the laws of this state, or qualified to do or doing business in Oklahoma in a corporate
or organized capacity by virtue or creation of organization under the laws of this state or any other state, territory, district,
or a foreign country, including associations, joint stock companies and business trusts as defined by Oklahoma statutes,
unless exempt by statutes, must file an annual franchise tax return. The term “doing business” means and includes
every act, power, or privilege exercised or enjoyed in this state as an incident to do or by virtue of powers and privileges
acquired by the nature of all organizations falling within the purview of the Franchise Tax Code.
For tax year 2023, corporations required to file a franchise tax return with an existing election may file a combined
corporate income and franchise tax return. Corporations not filing a combined corporate income and franchise tax
return must file a Form 200, Oklahoma Annual Franchise Tax Return. Corporations that remitted the maximum amount
of franchise tax for the preceding tax year or that have had their corporate charter suspended do not qualify to file a
combined corporate income and franchise tax return.

TIME AND PLACE FOR FILING
Corporate returns shall be due no later than 30 days after the due date established under the IRC. In the case of
complete liquidation or the dissolution of a corporation, the return shall be made on or before the 15th day of the fourth
month following the month in which the corporation is completely liquidated. When the last date for filing any document
or performing any act required by the OTC falls on a day when the offices are not open for business, the filing of the
document or performance of the act shall be considered timely if it is performed by the end of the next business day.
A valid extension of time in which to file your federal return automatically extends the due date of your Oklahoma return if
no Oklahoma liability is owed. A copy of the federal extension must be provided with your Oklahoma return. If your federal
return is not extended, or an Oklahoma liability is owed, an extension of time to file your Oklahoma return may be granted
on Form 504-C.
Electronic filing is required pursuant to OAC 710:50-17-1.

FISCAL YEAR AND SHORT PERIOD RETURNS
For all fiscal year and short period returns, the beginning and ending dates of the tax year must be shown on the top
portion of the return where indicated. Omission of this information may cause a significant delay in the processing of the
return, and no interest will accrue on any refund pending.

	

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2023 OKLAHOMA SMALL BUSINESS CORPORATION TAX PACKET
WITHHOLDING ON NONRESIDENT MEMBERS
Pass-through entities (PTE) (partnerships, S corporations, limited liability companies or trusts) are required to withhold
Oklahoma income tax at a rate of 4.75% of the Oklahoma share of taxable income distributed to each nonresident
member (partner, member, shareholder or beneficiary). A PTE is not required to withhold income tax with regard to any
nonresident member who submits Form OW-15 (Nonresident Member Withholding Exemption Affidavit). 68 OS Sec.
2385.29, 2385.30 and 2385.31.
Withholding is not required on distributions made to persons, other than individuals, who are exempt from federal income
tax, organizations granted an exemption under IRC Section 501(c)(3), insurance companies subject to the Oklahoma
Gross Premium Tax and therefore exempt from Oklahoma income tax under 68 OS Sec. 2359(c) and nonresident
members who have filed the Form OW-15 (Nonresident Member Withholding Exemption Affidavit).
Withholding is not required on any distribution of royalty income on which the nonresident royalty interest income tax has
already been withheld, on any distribution made to another PTE or on any distribution of income not subject to Oklahoma
income tax.
The following PTE’s are not required to withhold:
	

•	

An entity electing to be treated as a disregarded entity for federal income tax purposes. A disregarded entity is an
eligible entity that is treated as an entity that is not separate from its single owner.

	

•	

An entity that does not have a requirement, or properly elects out of the requirement, to file a federal income tax
return.

	

•	

An entity making distributions of income not subject to Oklahoma income tax.

	

•	

An entity that made the election to become an electing PTE (see “Electing Pass-Through Entity” on page 7 for
more information).

Distributions Made from the S Corporation
S corporations that make distributions subject to Oklahoma withholding must register with the OTC. Register by
completing Form OW-11 (Registration for Oklahoma Withholding for Nonresident Members). This form may be obtained
from our website at tax.ok.gov.
To file and pay the income tax withheld, the S corporation must complete Form WTP-10003 (Oklahoma Nonresident
Distributed Income Withholding Tax Annual Return). The S corporation will file Form WTP-10003 on or before the due
date (including extensions) of the S corporation’s income tax return.
The S corporation must provide nonresident shareholders a Form 500-B by the due date (including extensions) of its
income tax return, showing their respective amount of income and tax withheld. Copies of Form 500-Bs, along with the
cover Form 501, must be electronically filed with the OTC by the same date. Each nonresident shareholder must provide
a copy of the Form 500-B with their Oklahoma income tax return as verification for this withholding.
For S corporations paying the tax on behalf of nonresident shareholders, the nonresident shareholder’s withholding may
be claimed on Form 512-S, part 1, line 7. A copy of the nonresident shareholder’s Form 500-B must be provided with the
Form 512-S.

GENERAL FILING INFORMATION: INCOME TAX
Agricultural Commodity Processing Facility Exclusion

Owners of agricultural commodity processing facilities may exclude 15% of their investment in a new or expanded
agricultural commodity processing facility located within Oklahoma. “Agricultural commodity processing facility” means
buildings, structures, fixtures and improvements used or operated primarily for the processing or production of agricultural
commodities to marketable products. The investment is deemed made when the property is placed in service. Under no
circumstances shall this exclusion lower the shareholder’s taxable income below zero. In the event the exclusion does
exceed income, any unused portion may be carried over for a period not to exceed six years.
Attach a separate schedule showing the type of investment(s), the date placed in service, the cost, the total exclusion
and the exclusion available for each shareholder. Do not include this exclusion in the Oklahoma net distributable income;
each shareholder shall report their allowable share of the exclusion on the designated line of their individual return. For a
nonresident who does not file a nonresident agreement, include the shareholder’s allowable share in Part 5, line 13.

	

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2023 OKLAHOMA SMALL BUSINESS CORPORATION TAX PACKET
Oklahoma Depletion in Lieu of Federal Depletion (Part 5)

Oklahoma depletion on oil and gas well production, at the option of the taxpayer, may be computed at 22% of gross
income derived from each Oklahoma property during the taxable year. Major oil companies, as defined in 52 OS Sec.
288.2, when computing Oklahoma depletion, shall be limited to 50% of the net income (computed without the allowance
for depletion) from each property. If Oklahoma options are exercised, the federal depletion not used due to the 65%
limit may not be carried over. Lease bonus received is considered income subject to depletion. If depletion is claimed
on a lease bonus and no income is received as a result of non-producing properties, upon expiration of the lease, such
depletion must be restored. A complete schedule by property must be furnished.
Note: For each nonresident shareholder whose income is reported in Part 1, line 1a, the depletion is reported in Part 1,
line 1c.

Underpayment of Estimated Tax Interest

All S corporations that are paying tax at the corporate level are required to make estimated tax payments when the tax for
the taxable year can reasonably be expected to be $500 or more. The estimated tax payments shall not be less than 70%
of the amount of tax due (tax liability less all credits except amounts paid on estimated tax and extension payments), or
100% of the prior year’s tax liability. Should deficiencies occur, the amount of underpayment shall be subject to interest at
an annual rate of 20%, or fraction thereof, for the period of underpayment. Provide Form OW-8-P.
Note: No underpayment of estimated tax interest shall be imposed if the tax liability shown on the return is less than $1,000.

Amended Returns

The Form 512-S is used for amended returns also. If this is an amended return, place an “X” in the box located in the top
section of Form 512-S, page 1. Complete Schedule 512-S-X on page 14. Provide Federal Amended Form 1120-S when
applicable. Overpayments cannot be applied to next year’s estimated tax. Line 27 cannot be amended or changed
once the original return has been processed. See 68 OS Sec. 2373 for the statute of limitations for refunds.
When amending Form 512-S for S corporations that are paying tax at the corporate level, enter on line 9 any amount
paid with the original return plus any amount paid after it was filed. Enter on line 10 any refund previously received or
overpayment applied. An overpayment on an amended return may not be credited to estimated tax, but will be refunded.
The amount applied to estimated tax on the original return cannot be adjusted.

Adjustments by Internal Revenue Service

Taxpayers who file “consents” extending the time for making federal adjustments automatically extend the time for making
state adjustments. The taxpayer is also required to file an amended return reporting all Internal Revenue Service (IRS)
adjustments. A copy of the finalized revenue agent report (RAR) must be furnished.

Banks and Credit Unions

State and national banks and state credit unions that make a federal subchapter S election shall not pay an “In Lieu” tax
of 4% per 68 OS Sec. 2370. The income or loss of that entity shall be reported at the shareholder level.

Real Estate Investment Trusts

A real estate investment trust that does not become regularly traded on an established securities market within one year
of the date on which it first becomes a real estate investment trust shall be deemed not to have been regularly traded on
an established securities market, retroactive to the date it first became a real estate investment trust. An amended return
shall be filed reflecting such retroactive designation for any tax year or part year occurring during its initial year of status
as a real estate investment trust. For purposes of this paragraph, a real estate investment trust becomes a real estate
investment trust on the first day it has met the requirements of IRC Section 856 and has elected to be treated as a real
estate investment trust pursuant to IRC Section 856(c)(1). 68 OS Sec. 2358.

GENERAL FILING INFORMATION: FRANCHISE TAX
Requirement for Filing a Franchise Tax Return

All foreign (non-Oklahoma) corporations, including non-profits, must pay an Annual Registered Agent Fee of $100.00.
Indicate this amount on line 13 of the Form 512-S, page 10.
The maximum annual franchise tax is $20,000.00. Corporations that remitted the maximum amount of franchise tax for
the preceding tax year do not qualify to file a combined income and franchise tax return. For these corporations, franchise
tax is due and payable on May 1 of each year, and delinquent if not paid on or before June 1.
If a taxpayer computes the franchise tax due and determines that it amounts to $250.00 or less, the taxpayer is exempt
from the tax and a “no tax due” return is required to be filed. A schedule of corporate officers must still be filed, and for
foreign corporations, the $100.00 registered agents fee is still due.
If the charter or other instrument is suspended, a fee of $150.00 is required for reinstatement. (Line 16 of Form 512-S,
page 10.)
	

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2023 OKLAHOMA SMALL BUSINESS CORPORATION TAX PACKET
Franchise Tax Computation

The basis for computing Oklahoma franchise tax is the balance sheet, as shown by your books of account at the close of
the last preceding income tax accounting year. If electing to change filing to match the due date of the corporate income
tax, use the balance sheet for that corporate tax year.
The franchise tax for corporations doing business both within and outside of Oklahoma is computed on the proportion
to which property owned, or property owned and business done, within Oklahoma bears to total property owned, or total
property owned and total business done, everywhere.
“Property owned” is the book value of the assets. For the purpose of determining apportionment between Oklahoma and
elsewhere, liabilities are not to be deducted from gross assets.
The term “business done” means and includes the engaging in any activity or the performing of any act or acts in this state
that constitutes the doing or transacting of business. Business done in Oklahoma includes sales shipped from Oklahoma
to another state in which the corporation is not doing business.
Intercompany payables and receivables between parent, subsidiary and/or affiliates, are to be eliminated from the
calculations necessary to determine the amount of franchise tax due.
Oklahoma franchise (excise) tax is levied and assessed at the rate of $1.25 per $1,000.00 or fraction thereof on the
amount of capital allocated or employed in Oklahoma.

LINE BY LINE INSTRUCTIONS FOR DETERMINING OKLAHOMA
NET DISTRIBUTABLE INCOME: INCOME TAX
Computation of Allocable and/or Apportionable Income
Part 2, Column A and Part 3, Column A are to be completed by all S corporations. All S corporations start with Part 2.
Part 2, Column B and Part 3, Column B, are to be completed by S corporations deriving all of their income from within
Oklahoma or by S corporations whose business within and without Oklahoma is oil and gas production, mining, farming,
income from other pass-throughs or rental. This should be completed using the direct accounting method.
Part 4 is to be completed by S corporations conducting a business of a unitary nature. A unitary business is one whose
income is derived from the conduct in more than one state of a single business enterprise, all the factors of which are
essential to the realization of an ultimate gain derived from the enterprise as a whole, and not from its component parts
which are too closely connected and necessary to each other to justify division or separate allocation.
Safety Pays OSHA Consultation Service Exemption
(Part 2, line 19, column B or Part 4, line 3)
An employer that is eligible for and utilizes the Safety Pays OSHA Consultation Service provided by the Oklahoma
Department of Labor shall receive a $1,000 exemption for the tax year the service is utilized. Employers must be able to
substantiate their participation in the Oklahoma Department of Labor’s Safety Pays OSHA Consultation Service upon request.
Qualified Refinery Property
(Part 2, line 5, column B or Part 4, line 2)
If the election was made to expense the cost of qualified Oklahoma refinery property placed in service before January 1,
2012, on a previous year’s Oklahoma return, the depreciation deduction claimed on the federal return for such property
must be added back to arrive at Oklahoma taxable income. This addition must be made regardless of whether the
expense was claimed on the corporate return or allocated to its owners. 68 OS Sec. 2357.204.
Cost of Complying with Sulfur Regulations
A qualified refinery may make an irrevocable election to allocate all or a portion of the cost of complying with sulfur
regulations issued by the Environmental Protection Agency as a deduction allowable to its owners. The allocation for each
person is equal to the ratable share of the total amount allocated, determined on the basis of the ownership interest of the
person. The taxable income of the refinery shall not be reduced by the reason of any amount allowed under this section.
68 OS Sec. 2357.205.
If You Are the Refinery
To make the election, attach a schedule stating your corporate name and FEIN, a list of the costs of complying with sulfur
regulations, some or all of which are being allocated to your owners, and the portion of such costs allocated to each owner
(including the owner’s name and federal identification number). You shall also provide each owner with written notice of
the amount of the allocation. The notice must include your corporate name and FEIN and the owner’s name and federal
identification number.
	

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2023 OKLAHOMA SMALL BUSINESS CORPORATION TAX PACKET
Cost of Complying with Sulfur Regulations (continued)
If You Are the Owner
(Part 2, line 19, column B or Part 4, line 6)
Deduct the portion of the cost of complying with sulfur regulations that have been allocated to you. Attach the written
notice of the allocation received from the refinery.
Captive Real Estate Investment Trusts
(Part 2, line 5, column B or Part 4, line 2)
A captive real estate investment trust that is subject to federal income tax is required to add-back the dividends-paid
deduction otherwise allowed by federal law in computing net income. 68 OS Sec. 2358.
Indian Employment Exclusion
(Part 2, line 19, column B or Part 4, line 3)
All qualified wages equal to the federal Indian Employment Credit set forth in 26 U.S.C.A., Section 45A, shall be deducted
from taxable income. Deduct on the Oklahoma return an amount equal to the reduction of salaries and wages reported on
the federal return as a result of the Form 8845 “Indian Employment Credit”. The deduction allowed shall only be permitted
for the tax years in which the federal credit is allowed, even if not used in such year because of tax liability limitations.
Provide a copy of the federal return, Form 8845 and, if applicable, Form 3800.
Deduction for Qualified Equity Investments
(Part 2, line 19, column B)
Corporations may deduct qualified equity investments in an eligible Oklahoma venture capital company. The deduction
may not exceed $25 million by an accredited investor during a taxable year and may not reduce Oklahoma taxable income below zero. 68 OS Sec 2358.110. Provide Form 582-I (available at tax.ok.gov).
Deduction for Qualified Property
(Part 2, line 14, column B or Part 4, line 3)
Corporations may deduct the cost of business assets that are qualified property or qualified improvement property covered under Sec. 168 of the IRC. The qualified property is eligible for 100% Oklahoma bonus depreciation and may be
deducted as an expense incurred by the taxpayer during the taxable year during which the property is placed in service.
Electing Pass-Through Entity
68 OS Sec. 2355.1P-1 through 2355.1P-4
“Electing pass-through entity” means any PTE as defined in 68 OS Sec. 2355.1P-2(6) that has made an election pursuant
to 68 OS Sec. 2355.1P-4(F) to pay income tax as computed pursuant to 68 OS Sec. 2358.
Any PTE required to file an Oklahoma partnership income tax return or Oklahoma S corporation income tax return
may elect to become an electing PTE by filing Form 586 “Pass-Through Entity Election Form”. The election to become
an electing PTE has priority over and revokes any election to file a composite Oklahoma partnership return or the
requirement of a Subchapter S corporation to report and pay tax on behalf of a nonresident shareholder for the same tax
year. An election made by one PTE is not binding on any other PTE; each PTE must make its own election.
The election is binding until revoked by the PTE or by the OTC. Form 586 is also used by the PTE to revoke the election.
If the amount of tax required to be paid by the PTE pursuant to the provision of the Pass-Through Entity Tax Equity Act of
2019 is not paid when due, the OTC may revoke the PTE’s election effective for the first year for which the tax is not paid.
If You Are the Electing PTE
Place an “X” in the “Electing PTE” box located at the top of Form 512-S, page 1. Use Form 587-PTE “Pass-Through Entity
Income Tax Supplement” to compute the electing PTE’s Oklahoma tax. Each member’s distributive share of the PTE’s
Oklahoma net entity income is multiplied by 4.75% for individual and trust members or 4% for corporate, S corporation
and partnership members. The total of which is the electing PTE’s tax. The electing PTE’s taxable income and tax are
entered on Form 512-S, Part 1, section One, lines 1 and 2b and 2c.
Oklahoma Net Entity Loss
If the PTE election results in a net entity loss for Oklahoma income tax purposes in any tax year, the net entity loss may
be carried back and carried forward by the electing PTE for Oklahoma income tax purposes as set forth in 68 OS Sec.
2358(A)(3)(b). The electing PTE’s net entity loss equal to the percentage of ownership reported in each part is entered on
Form 587-PTE, Part 1, line 18, or Part 2, line 18.
If You Are a Member of an Electing PTE
(Part 2, line 5, column B or Part 4, line 6)
If you are a member, either directly or indirectly, of an electing PTE you may exclude the Oklahoma income (loss) covered
by the election pursuant to the provisions of the Pass-Through Entity Act of 2019. Attach a schedule listing the electing
PTE, federal identification number, federal taxable income (loss) and Oklahoma taxable income (loss) in line 1 that is
covered by the election pursuant to this Act. Provide a copy of the OTC acknowledgement letter. 68 OS Sec. 2358(A)(11).
	

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2023 OKLAHOMA SMALL BUSINESS CORPORATION TAX PACKET
PART 2
To compute Oklahoma net distributable income, all S corporations start with Part 2.
Lines 1-21, Column A
Part 2, column A must be completed by all S corporations. List exact figures as reported on the front page of your Federal
Form 1120-S.
Lines 1-21, Column B
Part 2, column B is to be used by S corporations deriving all of their income from within Oklahoma. This column is also
to be used by all S corporations whose business, both within and without Oklahoma, is oil and gas production, mining,
farming, income from other pass-throughs or rental. This should be completed using the direct accounting method. S
corporations conducting business of a unitary nature do not complete column B.
Rents and interest expenses paid to a captive real estate investment trust and deducted on your federal return must be
added back on column B, line 5 to compute Oklahoma distributable income. Such add-back is not required if the captive
real estate investment trust is subject to the add-back for the dividends-paid deduction. See the “Captive Real Estate
Investment Trusts” section.

PART 3
If federal and Oklahoma net distributable incomes are the same, you may complete line 18 of Part 3, then
complete Part 5. A copy of your federal Form 1120-S and K-1 must be provided with your Oklahoma return. An
Oklahoma return must be filed.
Lines 1-18, Column A:
Part 3, column A is to be used by all S corporations. List figures as reported on your Federal Form 1120-S, Sch. K.
Lines 1-18, Column B
Part 3, column B is to be used by S corporations deriving all of their income from within Oklahoma. This will be the same
as in column A, except for lines 4b and 4c.
This column is also used by S corporations whose business within and without Oklahoma is oil and gas production,
mining, farming, income from other pass-throughs or rental. Complete this column on a direct accounting basis as follows:
Line 1
Income (loss) shall be allocated in accordance with the situs of such property. Overhead expense shall be allocated on the
basis of direct expense in Oklahoma to the total direct expense everywhere. Use page 2, Part 4 or provide a schedule.
Lines 2 and 3
Income (loss) from real and tangible personal property shall be allocated in accordance with the situs of such property.
Line 4
Accounts receivable interest income and interest income from investments held to generate working capital shall be
allocated to Oklahoma on the basis of direct expense. See Part 3, line 1.
All other intangible income (loss) shall be allocated in accordance with the situs of the S corporation. Gains or losses
from the sale of leases and gains or losses from the sale of real and tangible personal property shall be allocated in
accordance with the situs of the property.
Line 4b
State and Municipal Bond Interest
S corporations domiciled in Oklahoma that receive income on bonds issued by any state or political subdivision thereof,
exempt from federal taxation but not exempt from taxation by the laws of the State of Oklahoma, shall add the total of
such income to arrive at Oklahoma income.
	 1)	 Income from all bonds, notes or other obligations issued by the State of Oklahoma, the Oklahoma Capital
Improvement Authority, the Oklahoma Municipal Power Authority, the Oklahoma Student Loan Authority and the
Oklahoma Transportation Authority (formerly Turnpike Authority) is exempt from Oklahoma income tax. The profit
from the sale of such bonds, notes or other obligations shall be free from taxation.
	 2)	 Income from local Oklahoma governmental obligations issued after July 1, 2001, other than those provided for
in line 1, is exempt from Oklahoma income tax. The exceptions are those obligations issued for the purpose of
providing financing for projects for nonprofit corporations. Local governmental obligations shall include bonds or
notes issued by, or on behalf of, or for the benefit of Oklahoma educational institutions, cities, towns, or counties or
by public trusts, of which any of the foregoing is a beneficiary.

	

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2023 OKLAHOMA SMALL BUSINESS CORPORATION TAX PACKET
Line 4b State and Municipal Bond Interest (continued)
	 3)	 Income from Oklahoma State and Municipal Bonds issued prior to July 2, 2001, other than those provided for in line
1, is exempt from Oklahoma income tax only if so provided by the statute authorizing their issuance.
	 4)	 Income on bonds issued by another state or political subdivision thereof (non-Oklahoma), exempt from federal
taxation, is taxable for Oklahoma income tax.
Provide a schedule of all municipal interest received by source and amount. If the income is from a mutual fund that
invests in state and local government obligations, provide documentation from the mutual fund to substantiate the
percentage of income derived from obligations exempt from Oklahoma tax.
Note: If the interest is exempt, the capital gain/loss from the sale of the bond may also be exempt. The gain/loss from sale
of a state or municipal bond, other than those provided for in line 1, is exempt only if so provided by the statute authorizing
its issuance.
Line 4c - Interest on U.S. Government Obligations
If you report interest on bonds, notes, and other obligations of the U.S. on your federal return, it may be excluded from
your Oklahoma income if a detailed schedule is furnished, accompanied with 1099s showing the amount of interest
income and the name of the obligation from which the interest is earned. If the income is from a mutual fund that invests
in U.S. Government obligations, provide documentation from the mutual fund to substantiate the percentage of income
derived from obligations exempt from Oklahoma tax. Interest from entities such as FNMA and GNMA does not qualify.
Lines 7 through 9
Gains or losses from the sale of the following shall be allocated in accordance with the situs of the property:
	
• 	 Real or tangible personal property,
	
• 	 Lease, royalty or bonus income from oil and gas properties.
Line 10
The gain on property, for which a section 179 expense deduction was passed through to shareholders and which is
reported as Supplemental Information on the federal K-1, is to be reported on this line for Oklahoma purposes. Provide
the following: description of the property, date the property was acquired, date the property was sold, gross sales
price, cost or other basis plus expense of sale (including the S corporation’s basis reduction in the property due to the
section 179 expense deduction), depreciation allowed or allowable (not including the section 179 expense deduction),
and amount of section 179 expense deduction (if any) passed through to each shareholder for the property and the S
corporation’s tax year(s) in which the amount was passed through.
Lines 12 through 17
Expenses relative to the income above shall be allocated directly to that income.

PART 4
Part 4 is to be used by S corporations conducting a business of unitary nature. A unitary business is one whose income
is derived from the conduct in more than one state of a single business enterprise, all the factors of which are essential to
the realization of an ultimate gain derived from the enterprise as a whole, and not from its component parts, which are too
closely connected and necessary to each other to justify division or separate allocation.
Generally, the resulting amount is apportioned to Oklahoma based on the three-factor formula. The basis of the
apportionment is the average of three factors consisting of property, payroll and sales. If fewer than three factors are
present, the resulting amount is apportioned to Oklahoma on a two-factor or single-factor formula consisting of the
arithmetical average of the factors present. A factor is considered present if there is a denominator. Each factor is a ratio
of the total within Oklahoma to the total everywhere. To the income apportioned to Oklahoma, there is to be added all
income separately allocated to Oklahoma with the result being Oklahoma taxable income. 68 OS Sec. 2358.
Line 1
Enter net distributable income from page 5, Part 3, column A, line 18.
Line 2
Deductions relating to income that is separately allocable shall not be allowed as apportionable and will be entered here.
Rents and interest expenses paid to a captive real estate investment trust and deducted on your federal return must
be added back to compute Oklahoma distributable income. Such add-back is not required if the captive real estate
investment trust is subject to the add-back for the dividends-paid deduction, see “Captive Real Estate Investment Trusts”
on page 7.

	

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9

2023 OKLAHOMA SMALL BUSINESS CORPORATION TAX PACKET
PART 4 (continued)

Line 3
Income from U.S. obligations (see Part 3, line 4c instructions) and net income separately allocated (oil and gas
production, mining, farming, or rentals and other pass-through income) will be entered here. Gains or losses from sale of
intangible personal property that is directly allocated should also be entered here.
Line 4
Total apportionable income.
Line 5
Apportionment factor from apportionment schedule.
Line 6
Income separately allocated to Oklahoma should be entered here (interest income from state obligations or political
subdivisions, oil and gas production, mining, farming, rentals, the Oklahoma distributable income from pass-throughs, etc.).
Line 7
Oklahoma net distributable income. Place this figure on page 5, Part 3, column B, line 18. Then complete Part 5.

PART 5
All S corporations must complete Part 5. Complete Form 512-S-SUP if there are more than two shareholders. Complete
as many Form(s) 512-S-SUP as needed to list all shareholders.
If your business is either wholly in Oklahoma or of an allocable nature, complete Part 5 after you complete Part 3. If your
business is of a unitary nature, complete Part 5 after you complete Part 4.
Shareholder’s Pro Rata Share of Income
Enter the names, addresses and Social Security Numbers (SSN) or FEINs of the shareholders, and each shareholder’s
pro rata share of net income, whether distributed or not.
Notice: The amount shown on Part 5 may not be the amount to be entered on the shareholder’s Oklahoma income tax
return. This amount includes all allowable S corporation income, losses and deductions; however, some of these items
may be limited on the federal individual return. If these items are allowed in full or in part on your federal income tax
return, they will be allowed to the same extent on your Oklahoma return.
Corporations Please Note: Except for shareholders of an electing PTE, nonresident shareholders must provide
a signed Form 512-SA indicating that an income tax form will be filed with Oklahoma reporting their income or loss.
This agreement must be provided with the original S corporation income tax return, Form 512-S, for each nonresident
shareholder, otherwise the corporation shall be taxed on that part of the corporation’s net income allocable to the shares
of stock owned by the nonresident shareholder.
Once the agreement has been signed, it is irrevocable for this tax year. If a signed agreement is not submitted with
the original filed return, the tax on the corporation is binding. Each shareholder’s SSN or FEIN must be shown for the
agreement to be valid.

Depletion

Enter each shareholder’s allowable depletion. Provide a detailed schedule.

Credits

Enter and describe each shareholder’s portion of credits. Provide all forms required to substantiate the credit(s). See the
instructions for Part 1 “Oklahoma Credits” for more detail on the credits available.

Withholding

Oklahoma income tax is withheld from oil and gas royalties paid to nonresident S corporations. Enter each shareholder’s
portion of such withholding. The S corporation must provide its Form 500-A, Form 1099-MISC, Form K-1 or other
documentation to substantiate any Oklahoma withholding received by the S corporation passing through to its
shareholders.
Note: If you have any nonresident shareholders who have not filed a withholding exemption affidavit (Form OW-15),
Oklahoma income tax should have been withheld on any distribution of Oklahoma taxable income. Such withholding is not
reported here; instead you should have issued a Form 500-B to your nonresident shareholder.

	

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10

2023 OKLAHOMA SMALL BUSINESS CORPORATION TAX PACKET
PART 1 - SECTION ONE: INCOME TAX
Part 1 is to be completed:
	

• 	 For those nonresident shareholders for whom the Nonresident Shareholder Agreement (Form 512-SA) is
not provided. The S corporation will be taxed on the non-resident’s share of income. Note: If the nonresident
shareholder’s income is taxed at the S corporation level, the income is not to be reported by the shareholder on
an Oklahoma income tax return.

	

•	

For an electing PTE, Form 587-PTE must be completed.

	

•	

If claiming the Refundable Credit for Electricity Generated by Zero-Emission Facilities.

Line 1b - Oklahoma Capital Gain Deduction
Taxpayers can deduct qualifying gains receiving capital treatment that are included in federal taxable income. “Qualifying
gains receiving capital treatment” means the amount of the net capital gains, as defined under IRC Section 1222(11). The
qualifying gain must:
	

1) 	Be earned on real or tangible personal property located within Oklahoma that you have owned, either directly or
indirectly, for at least five uninterrupted years prior to the date of the sale,

	

2) 	 Be earned on the sale of stock or ownership interest in an Oklahoma headquartered company, limited liability
company or partnership where such stock or ownership interest has been owned, directly or indirectly, by you for
at least three uninterrupted years (two for individuals) prior to the date of the sale, or

	

3)	 Be earned on the sale of real property, tangible personal property or intangible personal property located within
Oklahoma as part of the sale of all or substantially all of the assets of an Oklahoma company, limited liability
company or partnership where such property has been directly or indirectly owned by such entity or owned by the
owners of such entity, and used in or derived from such entity for a period of at least three uninterrupted years
(two for individuals) prior to the date of the sale.

Form 561-S is used to determine the qualifying Oklahoma net capital gain of the nonresident shareholders whose income
is reported on Form 512-S, Part 1. Form 512-S, Part 1 is for those who did not file a nonresident shareholder agreement
(Form 512-SA). Provide Form 561-S, a copy of your Federal Schedule D and Form 8949 or 4797, when applicable.
Line 1c - Nonresident Share of Deductions
Share of Net Operating Loss (NOL) Carryover
Enter the amount of NOL carryover that is attributable to those nonresidents who did not file a nonresident shareholder
agreement (Form 512-SA) in the loss year. Provide a detailed schedule.
Oklahoma Depletion:
For each nonresident shareholder whose income is reported in Part 1, line 1a, Oklahoma depletion on oil and gas well
production, at the option of the taxpayer, may be computed at 22% of gross income derived from each Oklahoma property
during the taxable year. Major oil companies, as defined in 52 OS Sec. 288.2, when computing Oklahoma depletion, shall
be limited to 50% of the net income (computed without the allowance for depletion) from each property.
Lease bonus received is considered income subject to depletion. If depletion is claimed on a lease bonus and no income
is received as a result of non-producing properties, upon expiration of the lease, such depletion must be restored. A
complete schedule by property must be furnished.
Line 2a - Nonresident Tax
The income tax rate is 4%.
Lines 2b and 2c - Electing PTE
Enter the tax from Form 587-PTE, Parts 1 and 2.
Recapture of the Oklahoma Affordable Housing Tax Credit
If under IRC Section 42 a portion of any federal low-income housing credits taken on a qualified project is required to be
recaptured during the first 10 years after a project is placed in service, the taxpayer claiming Oklahoma Affordable Housing
Tax Credits with respect to such project shall also be required to recapture a portion of such credits. The amount of
Oklahoma Affordable Housing Tax Credits subject to recapture is proportionally equal to the amount of federal low-income
housing credits subject to recapture. Add the recaptured credit to the Oklahoma income tax and enter a “1” in the box.

	

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11

2023 OKLAHOMA SMALL BUSINESS CORPORATION TAX PACKET
Making an Oklahoma Installment Payment Pursuant to IRC Section 965(h)
If a taxpayer elected to make installment payments of tax due pursuant to the provisions of subsection (h) of Section 965
of the IRC, such election may also apply to the payment of Oklahoma income tax, attributable to the income upon which
such installment payments are based. Add the installment payment to the Oklahoma income tax and enter a “2” in the
box. Provide a schedule of the tax computation. 68 OS Sec. 2368(K).
Oklahoma Credits
Provide a copy of the credit form or schedule. Complete the schedule showing each shareholder’s pro rata share of
credit. For each credit, enter that portion attributable to the nonresident shareholders who do not file a nonresident
shareholder agreement (Form 512-SA) or for the shareholders of an electing PTE.
Line 3 - Other Credits
The amount of other credits claimed on Form 511-CR should be entered on this line. Enter in the box the number that
corresponds with the credit to which the taxpayer is entitled. If you are entitled to more than one credit, enter “99” in the
box. See the following for a list of credits available on Form 511-CR. Provide Form 511-CR and any applicable forms or
schedules. This form can be obtained from our website at tax.ok.gov.
Tax credits transferred or allocated must be reported on Form 569. Failure to file Form 569 will result in the affected
credits being denied by the OTC pursuant to 68 OS Sec. 2357.1A-2.
• 	 Oklahoma Investment/New Jobs Credit
	
Provide Form 506.
	
68 OS Sec. 2357.4 and Rule 710:50-15-74.
•	
	

Credit for Verified Blood Donation
68 OS Sec. 2357.406.

•	
	
	

Credit for Investment in a Clean-Burning Motor Fuel Property
Provide Form 567-A.	
68 OS Sec. 2357.22 and Rule 710:50-15-81.

•	
	

Credit for Tourism Development or Qualified Media Production Facility
68 OS Sec. 2357.34 - 2357.40.

•	
	

Oklahoma Local Development and Enterprise Zone Incentive Leverage Act Credit
68 OS Sec. 2357.81.

•	
	

Credit for Qualified Rehabilitation Expenditures
68 OS Sec. 2357.41 and Rule 710:50-15-108.

•	
	

Credit for Electricity Generated by Zero-Emission Facilities
68 OS Sec. 2357.32A.

•	
	

Credit for Financial Institutions Making Loans under the Rural Economic Development Loan Act
68 OS Sec. 2370.1.

•	
	

Credit for Strategic Industrial Development Enhancement (SIDE) Projects
68 OS Sec. 2357.105.

•	
	

Credit for Railroad Modernization
68 OS Sec. 2357.104 and Rule 710:50-15-103.

•	
	

Credit for Biomedical Research Contribution
68 OS Sec. 2357.45 and Rule 710:50-15-113.

•	
	
	

Credits for Employers in the Aerospace Sector
Provide Form 565.
68 OS Sec. 2357.301, 2357.302 & 2357.303 and Rule 710:50-15-109.

•	
	

Credit for Cancer Research Contribution
68 OS Sec. 2357.45 and Rule 710:50-15-113.

•	
	

Oklahoma Capital Investment Board Tax Credit
74 OS Sec. 5085.7.

•	
	

Credit for Contributions to a Scholarship-Granting Organization
68 OS Sec. 2357.206 and Rule 710:50-15-114.

	

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2023 OKLAHOMA SMALL BUSINESS CORPORATION TAX PACKET
Line 3 - Other Credits (continued)
•	 Credit for Contributions to an Educational Improvement Grant Organization
	
68 OS Sec. 2357.206 and Rule 710:50-15-115.
•	
	
	

Credit for Venture Capital Investment
Provide Form 518-A or 518-B.
68 OS Sec. 2357.206 and Rule 710:50-15-114.

•	
	

Oklahoma Affordable Housing Tax Credit
68 OS Sec. 2357.403.

•	
	
	

Credits for Employers in the Vehicle Manufacturing Industry
Provide Form 585.
68 OS Sec. 2357.404 and Rule 710:50-15-116.

•	
	

Credit for Oklahoma Rural Jobs
68 OS Sec. 3930-3937.

•	
	

Credit for Contributions to an Eligible Public School Foundation or Public School District
68 OS Sec. 2357.206 and Rule 710:50-15-115.

Line 7 - Oklahoma Withholding
Enter the portion of Oklahoma withholding that is passing through the S corporation to those nonresident shareholders
who did not file a nonresident shareholder agreement (Form 512-SA) or to shareholders of an electing PTE. The
shareholder’s portion of such withholding is shown on page 8, Part 5, line 10. Provide the Form 1099-MISC, Form 500-A,
Form K-1 or other withholding statement received by the S corporation to substantiate the Oklahoma withholding.
Enter the Oklahoma income tax withheld from Oklahoma distributions made to your nonresident shareholders who did
not file a nonresident shareholder agreement (Form 512-SA). The shareholder’s withholding is shown on the Form 500-B.
Provide a copy of the Form 500-B for each such nonresident shareholder.
Note: Do not include the portion of the S corporation’s withholding passing through to resident shareholders or to those
nonresident shareholders who filed a nonresident shareholder agreement (Form 512-SA).
Line 8 – Credit from Form 578
If claiming the Refundable Credit for Electricity Generated by Zero-Emission Facilities, provide Form 578. Credits
earned, but not used, based on electricity generated during the tax year may be refunded to the taxpayer at 85% of the
face amount of the credits. A PTE that does not file a claim for a direct refund may allocate the credit to one or more of its
shareholders, partners or members.
Line 9 - Amounts Previously Paid
When filing an amended return, enter any amount(s) paid with the original return plus any amount(s) paid after it was filed.
Line 10 - Refunds or Overpayment Applied
When filing an amended return, enter any refund previously received and/or overpayment previously applied.
Line 14 - Underpayment of Estimated Tax Interest
All S corporations are required to make estimated tax payments if the tax liability is $500 or more. To avoid the 20%
Underpayment of Estimated Tax Interest, timely filed estimated tax payments are required to be equal to the smaller of
70% of the current year tax liability or 100% of your prior year tax. The tax liability is the tax due less all credits except
amounts paid on estimated tax and extension payments.
Place an “X” in the box if the underpayment of estimated tax was computed using the annualized income installment
method.
Note: No Underpayment of Estimated Tax Interest shall be imposed if the tax liability shown on the return is less than
$1,000. Provide Form OW-8-P.
If an amended return is filed before the due date for filing the original return, including any extension, the tax shown on
the amended return is used to determine the amount of underpayment. If the amended return is filed after the due date,
including extension, the tax shown on the amended return will not be used to compute the amount of underpayment.

	

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2023 OKLAHOMA SMALL BUSINESS CORPORATION TAX PACKET
Line 15 - Delinquent Penalty and Interest
Interest at the rate of 1.25% per month shall be paid on the tax due from the original due date until paid. 90% of the tax
liability must be paid by the original due date of the return to avoid a delinquent penalty charge of 5% for late payment.
NOTE: If a combined Corporate Income and Franchise Tax Return is not being filed, skip the Franchise
Tax Instructions and go to the “Page Three, Section Three: Total” instructions on page 16.

LINE BY LINE INSTRUCTIONS: FRANCHISE TAX
PAGES TEN THROUGH THIRTEEN: ANNUAL FRANCHISE TAX RETURN
First Step

Complete Balance Sheet and Schedules B, C & D on Form 512-S, pages 12 and 13. (Provide with annual return.)
Balance Sheet Instructions (page 13)
Lines 1 – 3
Cash, notes, accounts receivable, and inventories are to be reported at book value.
Line 4
United States, municipal, commercial and other bonds owned by the corporation.
Line 5
Prepaid expenses and deferred charges are to be included as assets at book value.
Line 8
Stock or other evidence of ownership in subsidiary organizations as shown on the corporation’s books of account.
Lines 9b, 10b, 11b
If accumulated depreciation and depletion appear to be excessive, the excess may be disallowed.
Line 13
Patents, trademarks, copyrights, etc., and franchises are to be included as assets to the extent of their cost. In the case
of a definite term franchise, the cost thereof may be amortized over its life. Goodwill is an asset and should be shown at
book value. All intangibles, including cash, are to be apportioned wholly to Oklahoma unless a commercial or business
location for the intangibles has been established elsewhere.
Line 14
Life insurance, where the reporting taxpayer is beneficiary, is to be shown at cash surrender value.
Line 15
Total net amount of lines 6 through 14.
Line 18
Total lines 15, 16, and 17.
Line 20
Reserves for taxes are allowed to the extent such taxes are unpaid. Deferred credits are included in capital employed
unless they can be shown to be actual liabilities.
Line 21
Current liability includes indebtedness payable in three years or less after issuance.
Line 26
Stockholder loans must be repaid within three years of creation to be considered a current liability. Contingent assets or
liabilities should not be included unless fully explained and the condition under which they become actual is clearly set
forth.
Line 32
Total lines 23 through 31. The amounts, as shown by the books of account, shall be the measure of value of the assets
and liabilities, except when the items on the books of account are in error or lack sufficient detail to truly reflect the amount
of capital invested and employed in the business.

	

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14

2023 OKLAHOMA SMALL BUSINESS CORPORATION TAX PACKET
Second Step

Complete the Oklahoma Annual Franchise Tax Return (page 10).
Item A: Enter the taxpayer FEIN.
Item B: Enter the account number issued by the OTC beginning with “FRX”, followed by 10 digits. If no number has been
issued, leave blank.
Item C: Place an “X” in the box if your mailing address has changed. Write your new address in the space provided in
Item C.
Item D: Enter your balance sheet date (MM/DD/YY) of your most recent income tax accounting year. Do NOT leave blank.
Lines 1-11 (except 9) are derived from your balance sheet (page 13).
Line 9 - Percent of Oklahoma Assets
Select which option you will use to determine the apportionment of Oklahoma assets.
Option 1:	 Percent of Oklahoma assets and business done to total assets and business done (line 6 divided by line 8).
Round to six decimal points.
Option 2:	 Percent of Oklahoma assets to total net assets (line 1 divided by line 2). Round to six decimal points.
Line 12 - Tax
Compute tax at $1.25 per $1,000.00 of capital (either line 4 or line 11). If tax is more than $20,000.00, enter $20,000.00
on line 12. You are exempt from paying tax if your tax liability is $250.00 or less, however, a return must still be filed.
Note: Corporations paying the maximum franchise tax of $20,000.00 this year will be required to file a stand-alone
franchise tax return (Form 200) next year. A combined corporate income and franchise tax return will not be allowed.
Line 13 - Registered Agents Fee
If the corporation originated in a state other than Oklahoma, the Oklahoma Secretary of State charges an annual
registered agent fee of $100.00 which is collected on the franchise tax return.
Line 14 - Interest
Tax not paid by the original due date is subject to 1.25% interest per month from the due date until it is paid. Multiply the
amount in Line 12 by .0125 for each month the tax is unpaid.
Line 15 - Penalty
Tax not paid by the original due date is subject to a penalty of 10%. Multiply the amount in Line 12 by .10 to determine the
penalty.
Line 16 - Reinstatement Fee
If your corporate charter has been suspended, you must file a separate franchise return, Form 200, and meet all
outstanding filing and payment obligations in order to be reinstated. A $150.00 reinstatement fee is also required. Only
one reinstatement fee is required even if multiple past due returns are being filed.
Note: To expedite the reinstatement of your corporation, the fee can be paid online through your OkTAP franchise account
or by using our online payment service.
Line 17 - Previous Payment
Enter any estimated franchise tax paid with Form 504-C.
If filing an amended return, enter any franchise tax paid with the original return and amounts paid after it was filed.
Line 18 - Overpayment
Add the amounts from lines 12 through 16. If the result is less than the amount on line 17, subtract line 17 and enter the
difference (overpayment) on line 18.
Line 19 - Total Due
Add the amounts from lines 12 through 16. If the result is larger than the amount on line 17, subtract line 17 and enter the
difference (tax due) on line 19.

Third Step

Schedule A: Officer Information (page 11)
Enter the effective date of officers and current officer information. Failure to provide this information could result in the
corporation being suspended.

	

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15

2023 OKLAHOMA SMALL BUSINESS CORPORATION TAX PACKET
PAGE TWO - SECTION TWO: FRANCHISE TAX
To complete lines 17-24, use the figures from page 10, lines 12-19.

LINE BY LINE INSTRUCTIONS: INCOME TAX AND FRANCHISE TAX
PAGE THREE - SECTION THREE: TOTAL
All Corporations Complete Section Three: Total.
Combine income tax and franchise tax. If there is a balance due, complete line 25. If there is an overpayment, complete
lines 26-30.
Line 28 - Donations From Your Refund
You may donate from your tax refund to support a variety of Oklahoma organizations. Enter the amount of your donation
and place the number of the organization in the box on line 28 of Form 512-S. If you give to more than one organization,
put a “99” in the box and attach a schedule showing how you would like your donation split.
	 1 Support of Programs for Volunteers to Act as Court Appointed Special Advocates for Abused or Neglected 		
	Children
You may donate from your tax refund to support programs for volunteers to act as Court Appointed Special Advocates for
abused or neglected children. Donations will be placed in the Income Tax Checkoff Revolving Fund for Court Appointed
Special Advocates. Monies will be expended by the Office of the Attorney General for the purpose of providing grants
to the Oklahoma CASA Association. If you are not receiving a refund, you may still donate. Mail your contribution to:
Oklahoma CASA Association, Inc., PO Box 54946, Oklahoma City, OK 73154.
	 2 Y.M.C.A. Youth and Government Program
You may donate from your tax refund to support the Oklahoma chapter of the Y.M.C.A. Youth and Government program.
Monies donated will be expended by the State Department of Education for the purpose of providing grants to the Program so
young people may be educated regarding government and the legislative process. If you are not receiving a refund, you may
still donate. Mail your contribution to: Oklahoma State Department of Education, Y.M.C.A. Youth and Government Program,
Office of the Comptroller, 2500 North Lincoln Boulevard, Room 415, Oklahoma City, OK 73105-4599.
	 3 Support the Wildlife Diversity Fund
You may donate from your tax refund to help conserve rare or declining fish and wildlife along with common species not
hunted or fished. Donations to the Oklahoma Department of Wildlife Conservation’s Wildlife Diversity program supports
field surveys of animals considered to be of greatest conservation need, as well as educational wildlife programs for all
Oklahomans. Tax deductible donations to the Wildlife Diversity Fund also can be made at wildlifedepartment.com or by
mail: Oklahoma Department of Wildlife Conservation, Re: Wildlife Diversity Fund, PO Box 53465, Oklahoma City, OK
73152.
	4 	
Oklahoma Silver Haired Legislature and Alumni Association Programs
You may donate from your tax refund to support the Oklahoma Silver Haired Legislature and their Alumni Association
activities. The Oklahoma Silver Haired Legislature was created in 1981 as a forum to educate senior citizens in the
legislative process and to highlight the needs of older persons to the Oklahoma State Legislature. Monies generated from
donations will be used to fund expenses of the Silver Haired Legislators, training sessions, interim studies and advocacy
activities. If you are not receiving a refund, you may still donate. Mail your contribution to: Oklahoma Silver Haired
Legislature and Alumni, PO Box 25352, Oklahoma City, OK 73125.
Line 30 All refunds must be directly deposited into a bank account. See page 17 “Direct Deposit Information” for details.

WHEN YOU ARE FINISHED
Payments may be made electronically online using OkTAP at tax.ok.gov or by check or money order payable to
“Oklahoma Tax Commission.” For proper account application, provide a completed Form EF-V (Business Filers Income
Tax Payment Voucher) or Form OW-8-ESC (Oklahoma Corporate, Fiduciary and Partnership Estimated Tax Coupon) with
your check or money order. Estimated income tax payments should be made separately. Do not include a copy of your
return with your mailed payment.
Mailed payments should be sent to : 	
	
	
	

Oklahoma Tax Commission
PO Box 26890
Oklahoma City, OK 73126-0890

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16

GET YOUR REFUND FASTER. USE DIRECT DEPOSIT!
Complete the direct deposit section on the tax return to have the refund directly deposited into your account at a
bank or financial institution. Refunds, with limited exceptions, must be made by direct deposit.

1

Place an ‘X’ in the appropriate box as to whether the refund will be going into a checking or savings
account. Keep in mind you will not receive notification of the deposit.

2

Enter your routing number. The routing number must be nine digits. Using the sample check shown
below, the routing number is 120120012. If the first two digits are not 01 through 12 or 21 through
32, the direct deposit will fail to process.

3

Enter your account number. The account number can be up to 17 characters (both numbers and 	
letters). Include hyphens but omit spaces and special symbols. Enter the number from left to right.
On the sample check shown below, the account number is 2020268620.

Please Note: The OTC is not responsible if a financial institution refused a direct deposit. If a direct deposit is refused, a
check will be issued to the address shown on the tax return.
WARNING! Due to electronic banking rules, the OTC will NOT allow direct deposits to or through foreign financial
institutions. If you use a foreign financial institution, you will be issued a paper check.

1234

JOE SMITH
SUSIE SMITH
123 Main Street
Anyplace, OK 00000

Routing
Number

PAY TO THE
ORDER OF

15-0000/0000

SAMPLE

Account
Number

$
DOLLARS

ANYPLACE BANK
Anyplace, OK 00000

SAMPLE

For

:120120012 : 2020268620

1234

Note: The routing
and account numbers
may appear in
different places on
your check.

THE OKLAHOMA TAX COMMISSION IS JUST ONE CLICK AWAY
FOR YOUR CONVENIENCE, 24/7
tax.ok.gov
Locations
Oklahoma City: 300 North Broadway Ave.
Monday - Friday 7:30 a.m. - 4:30 p.m.

Taxpayer Resource Center

Monday - Friday 8:00 a.m. - 5:30 p.m.
405.521.3160

Stay Connected

	

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17

Form 512-S
2023
Corporation

Oklahoma Small Business
Income and Franchise Tax Return

FOR INFORMATIONAL PURPOSES ONLY - MUST BE FILED ELECTRONICALLY
For the year January 1 - December 31, 2023, or other taxable year beginning:		ending:	
2023
Name of Corporation

Federal Employer Identification Number

Business Code Number

Street Address

State or Province

City

Date of Incorporation

Under the Laws Of

County in Which Located

Country

ZIP or Foreign Postal Code:

Type of Business

Extension - If you have applied for an extension

from the IRS, place an ‘X’ here and provide a copy.

Place an ‘X’ if:

(1)

Initial
Return

(2)

Final
Return

(3)

Amended Return
(See Schedule 512-S-X on page 14)

(4)

Electing PTE
(Form 586 was filed)

Notice: Corporations should not complete the franchise tax portion of the return for the following reasons:
	
•	 Filing a stand-alone Oklahoma Annual Franchise Tax Return Form 200.
	
•	 Not required to file a franchise tax return.
	
•	 Remitted the maximum amount of franchise tax for the preceding tax year.

-

PART ONE, SECTION ONE: INCOME TAX Tax Computation Schedule for Nonresident Shareholders Who Do Not
File Form 512-SA and Electing Pass-through Entities -or- for a Corporation Claiming the Refundable Credit from Form 578.
	1a	 Nonresident share of income from Page 8, Part 5, l