Wisconsin Wisconsin Revocation of Election by an S Corporation Not to Be a Tax-Option Corporation

Wisconsin Revocation of Election by an S Corporation Not to Be a Tax-Option Corporation
2023 IC-042 Form 5R Wisconsin Revocation of Election by an S Corporation Not to Be a Tax-Option Corporation
Form

5R

Wisconsin Department
of Revenue
	Corporation Name

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

	Number and Street

Suite Number

	State

	City

Mail this form to:

Wisconsin
Revocation of Election by an S Corporation
Not to Be a Tax-Option Corporation

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	 Revocation 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 revocation, consent to have the corporation be treated as a tax-option corporation for Wisconsin franchise or income tax purposes. This revocation will be effective for the taxable year indicated above. Each shareholder, in signing this
revocation, 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 revocation is made, have personally examined this revocation, 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-042 (R. 8-23)

Title	Date

Form 5R Instructions
General Instructions

Specific Instructions

Purpose of Form – A federal S corporation that has elected
not to be a tax-option corporation for Wisconsin tax purposes and that subsequently wishes to elect Wisconsin
tax-option status uses Form 5R to revoke the “opt-out”
election. As a result of revoking the “opt-out” election,
the income of the tax-option (S) corporation will be taxed
to the shareholders of the corporation rather than to the
corporation itself, with certain exceptions.

Fill in the corporation’s name and address and enter the
appropriate information in items A through E.

Who May Revoke – Once the election not to be a taxoption corporation for Wisconsin purposes has been
completed, it remains in effect 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 this
5-year period, the “opt-out” election may be revoked. The
revocation requires the consent of persons who hold more
than 50% of the shares of the S corporation on the day the
revocation is made.
Exception: The “opt-out” election is automatically revoked
for the taxable year in which a federal S corporation
acquires a qualified Subchapter S subsidiary (QSub) for
federal purposes. Since neither the S corporation nor the
QSub may elect out of Wisconsin tax-option (S) treatment,
it is not necessary to file Form 5R.
When to Revoke – You must file Form 5R on or before
the due date, or extended due date, of the first Wisconsin
corporation franchise or income tax return affected by the
revocation.
Corporations that are treated as tax-option (S) corporations for Wisconsin purposes must file Wisconsin Form
5S, Wisconsin Tax-Option (S) Corporation Franchise or
Income Tax Return.

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.

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 revocation. 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.