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REV-1640 CT (6-99) (I)

GENERAL INSTRUCTIONS

ELECTION TO BE TAXED AS A PENNSYLVANIA “S” CORPORATION

The shareholders of a corporation which

Revenue Code of 1986 (26 U.S.C.A

qualifies as a “small corporation” may elect to be

## 1361-1379) as amended to January

taxed as a Pennsylvania S Corporation. The

1, 1997.

shareholders’ election of Pennsylvania S

(2) The corporation would qualify as a

Corporation status is valid only if all of the share-

Federal S Corporation under Subchapter S

holders of the corporation sign a consent to the

of the Internal Revenue Code of 1986, as

election. If an election is made, each sharehold-

amended to January 1, 1997.

er will be subject to Pennsylvania Personal

Income Tax on each shareholder’s pro rata

share of the S Corporation income, whether

distributed or not.

FORM AND METHOD OF ELECTION

A Pennsylvania S Corporation with taxable

Except as noted below, a Pennsylvania S

income from sources within PA are jointly liable

Corporation election shall be filed with the PA

with their nonresident shareholders for payment

Department of Revenue on form REV-1640 on or

of tax on such income and are authorized and

before the 15th day of the third month of the

required to collect such tax from nonresident

current taxable year to be effective for that year.

shareholders and remit the tax to the PA

All of the shareholders of the corporation shall

Department of Revenue. To register for estimat-

consent to the election by signing either form

ed Personal Income Tax Withholding, contact

REV-1640 or a separate statement of consent,

the PA Department of Revenue, Bureau of

which may be attached to the Pennsylvania

Individual Taxes, Document Control Division,

form.

Dept. 280510, Harrisburg, PA 17128-0510.

The corporation shall attach a schedule to the

Pennsylvania S Corporation election identifying

the name, address, Pennsylvania Corporation

WHO MAY ELECT

Tax box number and federal employer identifica-

tion number of each qualified Subchapter S sub-

A Pennsylvania S Corporation election may be

sidiary owned by the corporation.

made by the shareholders of any small corpora-

tion that is subject to the Pennsylvania corporate

net income tax or that owns one hundred

The Pennsylvania S Corporation election with

percent (100%) of the stock of a qualified

the federal notice of acceptance shall be filed

Subchapter S subsidiary that is subject to the

with the Department by mailing the original exe-

Pennsylvania corporate net income tax. A

cuted form REV-1640 to the Department by

corporation is a small corporation, if it meets the

CERTIFIED MAIL. The election shall be deemed

following requirements:

filed on the date the envelope transmitting the

election is postmarked by the United States

(1) The corporation has a valid election in

Postal Service.

effect under Subchapter S of the Internal

Form Rev-1640 Ct - General Instructions Election To Be Taxed As A Pennsylvania "S" Corporation

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