Pennsylvania Election Not To Be Taxed as a Pennsylvania S Corporation

Election Not To Be Taxed as a Pennsylvania S Corporation
Election Not To Be Taxed as a Pennsylvania S Corporation (REV-976)
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(TR) 11-22

REV-976

ELECTION NOT TO BE TAXED
AS A PENNSYLVANIA
S CORPORATION

PA DEPARTMENT OF REVENUE
PO BOX 280901
HARRISBURG PA 17128-0901

Corporation is not subject to PA corporate
net income tax; election is for PA resident
shareholder purposes only.

START

➜
Federal Employer Identification Number (FEIN)
Pennsylvania Department of State Entity Number

Please fill in Corporate Name, Address, City, State and ZIP Code above.
Election is for this corporation and its qualified subchapter S subsidiaries
as identified on the included schedule showing the names and
FEIN or SSN of all subsidiaries.
(A)

Name and address of each shareholder, member or partner having an
interest in the corporation’s stock without regard to the manner in which
the stock is owned. If additional space is needed, complete a separate
schedule and include it with this form.

(B)

Social Security
Number or Federal
Employer
Identification
Number

Election is to be first effective for:
Tax year beginning:
MMDDYYYY
Tax year ending:
(C)

(D)

Percentage
of
Stock
Owned

MMDDYYYY
We, the undersigned
shareholders, consent to the
election of the corporation not
to be taxed as a
Pennsylvania S corporation.

You must provide your Social Security number so the department may
establish your identity and cross-reference other tax systems, as is
authorized under federal law, 42 U.S.C. § 405 (c).
Name
Street

Signature/Date
City

State

ZIP Code

Please Sign after printing.
Signature/Date
MMDDYYYY

City

State

ZIP Code

Please Sign after printing.
Signature/Date
MMDDYYYY

City

State

ZIP Code

Please Sign after printing.
Signature/Date
MMDDYYYY

City

State

ZIP Code

Please Sign after printing.
Signature/Date
MMDDYYYY

City

State

ZIP Code

Please Sign after printing.
Signature/Date
MMDDYYYY

City

State

ZIP Code

Please Sign after printing.
Signature/Date
MMDDYYYY

City

State

ZIP Code

Please Sign after printing.

Name
Street
Name
Street
Name
Street
Name
Street
Name
Street
Name
Street
Name
Street

MMDDYYYY

Signature/Date
City

State

ZIP Code

MMDDYYYY

Please Sign after printing.
Total = _____ 100%

NAME OF CORPORATE OFFICER
The corporate statement must be signed by an authorized officer of the corporation. The
above-named corporation hereby elects not to be taxed as a Pennsylvania S corporation
under Section 401 of the Tax Reform Code of 1971.
Á SIGNATURE AND TITLE
Under penalties of perjury, I declare that I have examined this Election Not To Be
Taxed As A Pennsylvania S Corporation, and to the best of my knowledge and SOCIAL SECURITY NUMBER
belief it is true, correct and complete.

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TELEPHONE NUMBER

Please Sign after printing.
DATE

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MMDDYYYY
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Instructions for REV-976

Election Not to be Taxed as a Pennsylvania S Corporation

REV-976 IN (TR) 11-22

GENERAL INFORMATION
Federal subchapter S corporations are no longer required
to file the REV-1640, Pennsylvania S Corporation Election
and Shareholders’ Consent, in order to be granted
Pennsylvania S corporation status. Effective for tax years
beginning after Dec. 31, 2005, any corporation with a valid
federal subchapter S corporation election will automatically
be a Pennsylvania S corporation. Any federal subchapter S
corporation that does not desire to be a Pennsylvania S
corporation must file REV-976, Election Not to be Taxed as
a Pennsylvania S Corporation, on or before the due date or
extended due date of the RCT-101, PA Corporate Net
Income Tax Report, for the first tax period in which the election is to be in effect. This election must be signed by 100
percent of the shareholders of the S corporation and once
made cannot be revoked for five years. RCT-101 is due 30
days after the federal return.

payable to the PA Department of Revenue. The PA40ESR (F/C) form can be downloaded from the department’s website at www.revenue.pa.gov or ordered by
telephone at 1-888-PATAXES (728-2937).

QUALIFIED SUBCHAPTER
S SUBSIDIARIES
If a qualified subchapter S subsidiary and/or parent of a
qualified subchapter S subsidiary, does not desire to be
taxed as a Pennsylvania S corporation, the parent must
file REV-976 for itself and all qualified subchapter S subsidiaries. The corporation must include a schedule with the
election identifying the name, address and federal employer identification number of each qualified subchapter S subsidiary owned by the corporation and doing business in
Pennsylvania.

CAUTION: In cases where the taxpayer must file
short period federal returns in relation to making the
election, the RCT-101 and REV-976 are due on the 30th
day following the due date of the applicable federal return.

PA RESIDENT SHAREHOLDERS
OF SUBCHAPTER S CORPORATIONS
IN ANOTHER STATE

In the case of a federal subchapter S corporation not
required to file RCT-101, does not do business in PA and is
not registered to do business in PA, REV-976 must be filed
30 days after the due date of the federal return (the due
date of RCT-101 if the corporation is required to file this
report).

Any federal subchapter S corporation that does not make this
election, and which does not do business nor is registered
to do business in PA but has a PA resident shareholder, will
be taxed as a Pennsylvania S corporation and will be
required to file PA-20S/PA-65. In addition, each resident
shareholder will be subject to Pennsylvania personal
income tax on each shareholder’s pro rata share of the S
corporation income, whether distributed or not.

NOTE: Subchapter S corporations are only required to
file RCT-101 for tax years when they have built-in gains.
Any federal subchapter S corporation doing business in
Pennsylvania or registered to do business in PA that does
not make this election will be taxed as a Pennsylvania S
corporation and will be required to file PA-20S/PA-65, PA S
Corporation/Partnership Information Return. In addition,
each resident shareholder is subject to Pennsylvania personal income tax on each shareholder’s pro rata share of
the S corporation income, whether distributed or not. Each
nonresident shareholder is subject to tax on the shareholder’s personal income from sources within PA. Filing the
RCT-101 is not required unless the corporation has federal
taxable built-in gains.
Partnership returns and Pennsylvania S corporations with
taxable PA-sourced income are jointly liable with their nonresident partners and shareholders for payment of tax on
such income to the extent allocable to the nonresidents.
Partnerships and S corporations are authorized and required
to withhold this tax from its nonresident owners and remit
the tax to the PA Department of Revenue. The department
accepts through the MeF Fed/State program the electronic
payment of the quarterly estimated withholding tax for nonresident owners filed with the PA65ES. Payments may be
remitted with the PA-20S/PA-65 ES (P/S) found on the
department's website with a check or money order made

FILING THE ELECTION
For a federal subchapter S corporation conducting business in Pennsylvania that is required to file RCT-101: The
due date for filing REV-976 is the due date or the extended
due date of RCT-101 for the first year for which the election
is to be in effect.
For a federal subchapter S corporation that is not required
to file RCT-101, (does not do business in PA and is not
registered to do business in PA): The due date for filing
REV-976 is 30 days after the due date or the extended due
date of the federal return. These corporations must check
the box indicating “Corporation is not subject to PA
Corporate Net Income Tax; election is for PA resident
Shareholder purposes only”.
The REV-976 must be signed by 100 percent of the shareholders on the date of the election and sent via Fax or
Email to:
Fax:
717-787-3708
Email: [email protected]
DO NOT SEND WITH THE PA CORPORATE
NET INCOME TAX REPORT

www.revenue.pa.gov

REV-976

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