Form Ct-60-Qsss - Qualified Subchapter S Subsidiary Information Schedule

Instructions

Page 2 of 2 CT-60-QSSS (2011)

General information

election is effective for the tax year for which the election is

made, and for all succeeding tax years of the corporation until

The Tax Law conforms in many respects to the federal

such election is terminated. Once made, the QSSS inclusion

treatment of qualified subchapter S subsidiaries (QSSS). The

election is binding for the tax year in which it is made and may

filing requirements impacting corporations that are the parent

not later be changed by filing an amended return. Complete

of a QSSS and corporations that have elected QSSS status are

Part 2 to make the election. You are required to complete

outlined in the instructions to your franchise tax return. In all

Part 2 for each succeeding tax year for which the QSSS is

cases where New York State follows federal QSSS treatment,

being included in the franchise tax return of the New York

the parent and QSSS will file a single franchise tax return. The

C corporation. If a QSSS for which the election had been made

QSSS will be ignored as a separate taxable entity, and the

in a previous tax year is not included on Part 2, it indicates

income, deductions, credits, and other tax attributes of the

termination of the election.

QSSS will be included on the parent’s franchise tax return.

However, with regard to other taxes under the Tax Law, such

If you elect to include a QSSS, you must also include any lower

as sales and excise taxes, and the license and maintenance

tier QSSS owned by that QSSS. However, do not include any

fees under Article 9, the QSSS will continue to be recognized

excluded QSSS (see Excluded QSSS).

as a separate corporation. Therefore, a foreign authorized

Excluded QSSS

QSSS included in the parent’s return (disregarded as a separate

taxable entity for franchise tax purposes) must file Form CT-245,

For an Article 9-A parent, do not include a QSSS taxable (or

Maintenance Fee and Activities Return For a Foreign

a nontaxpayer QSSS that would be taxable) under Article

Corporation Disclaiming Tax Liability, and pay the maintenance

9, sections 183, 184, 185, and 186, or Article 32 or 33. For

fee.

an Article 32 parent, do not include a QSSS taxable (or a

nontaxable QSSS that would be taxable) under Article 9,

For more information about QSSS filing requirements, see Need

sections 183, 184, 185, and 186, or Article 9-A or 33.

help?

Employer identification number or TF number

Who must file Form CT-60-QSSS

If the QSSS has or had a federal employer identification number

If you are an Article 9-A (general business corporation) or an

(EIN), enter that number in the appropriate box. If the QSSS

Article 32 (bank) taxpayer and you own a QSSS, you must

does not have an EIN, enter the TF identification number

file Form CT-60-QSSS to inform the Tax Department that the

assigned by the Tax Department. This number may be found on

income, deductions, credits, and other tax attributes of the

Form CT-198, Corporation Tax Account Information, sent when

QSSS will be included on your New York State franchise tax

the corporation first incorporated or became authorized to do

return for that tax period. This will notify the Tax Department

business in New York State. If the QSSS does not have an EIN

that the QSSS will not be filing a separate franchise tax return

or TF number, enter none.

for that tax period.

Effective date of federal QSSS election

The parent corporation is an S corporation for federal purposes,

but may be either a C corporation or an S corporation for New

Enter the effective date of the federal QSSS election made for

York State purposes. Accordingly, Form CT-60-QSSS applies to

the subsidiary. If the effective date falls on a date other than

the following franchise tax returns: CT-3, CT-4, CT-3-A, CT-3-S,

the first day of the subsidiary’s tax year, the subsidiary must file

CT-32, CT-32-S, or CT-32-A.

a short period return if it was subject to tax in New York State

prior to the effective date.

QSSS information

Signature

Enter in Part 1 the information for each QSSS required to be

included in your franchise tax return, and enter in Part 2 the

The return must be certified by the president, vice president,

information for each QSSS which you elect to include.

treasurer, assistant treasurer, chief accounting officer, or other

officer authorized by the taxpayer corporation.

Part 1 - QSSS required inclusion

The return of an association, publicly traded partnership, or

If you are a New York S corporation filing Form CT-3-S or

business conducted by a trustee or trustees must be signed by

CT-32-S, include every QSSS that you own, regardless of

a person authorized to act for the association, publicly traded

whether the QSSS is itself subject to tax in New York State. Also

partnership, or business.

include any lower tier QSSS owned by your QSSS. However, do

not include any excluded QSSS (see Excluded QSSS).

If an outside individual or firm prepared the return, all applicable

entries in the paid preparer section must be completed,

If you are a New York C corporation filing Form CT-3, CT-4,

including identification numbers (see Paid preparer identification

CT-3-A, CT-32, or CT-32-A, include every QSSS that you own

numbers in Form CT-1). Failure to sign the return will delay the

that is itself taxable in New York State, but do not include a

processing of any refunds and may result in penalties.

nontaxpayer QSSS unless a QSSS inclusion election has been

made. Also include any lower tier QSSS owned by your QSSS,

Need help? and Privacy notification

if the lower tier QSSS is itself taxable in New York State or if

See Form CT-1, Supplement to Corporation Tax Instructions.

a QSSS inclusion election has been made. However, do not

include any excluded QSSS (see Excluded QSSS).

Part 2 - QSSS elective inclusion

A New York C corporation (filing Form CT-3, CT-4, CT-3-A,

CT-32, or CT-32-A) may elect to include on its franchise tax

return a QSSS that is not taxable in New York State. The

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Form Ct-60-Qsss - Qualified Subchapter S Subsidiary Information Schedule - 2011 Page 2

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