Wisconsin Wisconsin Election by an S Corporation Not to Be Treated as a Tax-Option Corporation

Wisconsin Election by an S Corporation Not to Be Treated as a Tax-Option Corporation
2023 IC-048 Form 5E Wisconsin Election by an S Corporation Not to Be Treated as a Tax-Option Corporation
Form

5E

Wisconsin Department
of Revenue

Wisconsin Department
of Revenue
PO Box 8908
Madison WI 53708-8908
A	 Federal Employer ID Number

	Corporation Name

	Number and Street
	City

Mail this form to:

Wisconsin
Election by an S Corporation Not to Be
Treated as a Tax-Option Corporation

Suite Number

	State

ZIP Code (+ 4 digit suffix if known) C	 Number of Shareholders

B	 State of Incorporation	

and	 Year

D	 Number of Shares Issued and
	Outstanding

E	 Election is to be effective for taxable year beginning:
M

M

D

D

Y

Y

Y

Y

The undersigned, owning in total more than 50% of the issued and outstanding shares of the above S corporation on the date of this election,
consent to have the corporation not be treated as a tax-option corporation for Wisconsin franchise or income tax purposes. This election will be
effective for the taxable year indicated above and at least the next 4 taxable years for this corporation or any successor corporation. However, the
election will automatically terminate for the taxable year in which the corporation acquires a qualified Subchapter S subsidiary (QSub) for federal
purposes. Each shareholder, in signing this election, declares that the information with respect to his or her name, address, federal identifying
number, and stock ownership has been examined and, to the best of the shareholder’s knowledge and belief, is true, correct, and complete.
Name and Address of Shareholder

Federal
Identifying
Number

Stock Owned
Number of
Shares

Date
Acquired

Shareholder’s Signature

I, the undersigned authorized officer of the corporation for which this election is made, have personally examined this election, including
any accompanying schedules and statements, and declare that it is, to the best of my knowledge and belief, true, correct, and complete.
Signature	

IC-048 (R. 8-23)

Title	Date

Form 5E Instructions
General Instructions
Purpose of Form – A corporation that is an S corporation
for federal income tax purposes uses Form 5E to elect not
to be a tax-option corporation for Wisconsin tax purposes.
How to Elect – The election not to be a tax-option corporation for Wisconsin requires the consent of persons
who hold more than 50% of the shares of the tax-option
(S) corporation on the day the election is made. Note: If
an S corporation has a qualified Subchapter S subsidiary
(QSub) for federal purposes, neither the S corporation
nor the QSub may elect out of Wisconsin tax-option (S)
treatment.
When to Elect – You must make the election on or before
the due date, or extended due date, of the first Wisconsin
corporation franchise or income tax return affected by the
election. The election is completed by the filing of a Wisconsin franchise or income tax return in accordance with the
election. Use Wisconsin Form 4 or Form 6, as appropriate.
Caution: Since the corporation will be filing federal Form
1120-S, special adjustments may be required to properly
determine Wisconsin net income.
Revoking the Election – You may withdraw the “optout” election prior to the date of filing the corporation’s
Wisconsin franchise or income tax return by sending a
letter, signed by shareholders holding more than 50% of
the corporation’s stock, to the Department of Revenue on
or before the due date, including extensions, of the corporation’s return. If the corporation’s return was filed before
the due date, or extended due date, you may withdraw
the election by filing an amended Wisconsin franchise or
income tax return, Form 5S, along with a letter requesting
the withdrawal of the “opt-out” election on or before the
due date or extended due date.

Applicable Laws and Rules
This document provides statements or interpretations of
the following provisions of Wisconsin Statutes in effect as
of August 22, 2023: chs. 71 and 77, Wis. Stats. and chs.
Tax 1, 2 and 3 Wis. Adm. Code.

After the due date, or extended due date, for filing the
corporation’s Wisconsin franchise or income tax return has
passed, the “opt-out” election cannot be withdrawn, and it
remains effective for the corporation and any successors
for at least the next 4 taxable years after the taxable year
to which the election first applies. After the 5-year period,
you may revoke the “opt‑out” election by filing Wisconsin
Form 5R, Revocation of Election by an S Corporation Not
to Be a Tax-Option Corporation.
Exception: The “opt-out” election is automatically revoked
for the taxable year in which a federal S corporation acquires a QSub. In this case, it is not necessary to file Form
5R. You must use Wisconsin Form 5S to report the income
of the corporation and its QSub.

Specific Instructions
Fill in the corporation’s name and address and enter the
appropriate information in items A through E.
Enter in the space provided the name, address, and federal
identifying number (social security number for individuals
and federal employer identification number for estates,
qualified trusts, and exempt organizations) of each shareholder who is signing the election. Also enter for each
shareholder the number of shares owned and the date
the stock was acquired. If the shareholder acquired stock
on more than one date, enter the last date on which that
shareholder acquired stock. Each shareholder must sign
in the space indicated. If the stock is held as community
property or if the income from the stock is community
property, the consent must be signed by both husband
and wife. Wisconsin’s marital property is a form of community property.
If you need additional space, attach a schedule containing
the required information.
An authorized officer of the corporation must sign this form
in the space provided.