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Form 5R Instructions

Corporations that are treated as tax-option (S) corpora-

General Instructions

tions for Wisconsin purposes must file Wisconsin Form

5S, Wisconsin Tax-Option (S) Corporation Franchise or

Purpose of Form – A federal S corporation that has elected

Income Tax Return.

not to be a tax-option corporation for Wisconsin tax pur-

poses and that subsequently wishes to elect Wisconsin

tax-option status uses Form 5R to revoke the “opt-out”

Specific Instructions

election. As a result of revoking the “opt-out” election,

the income of the tax-option (S) corporation will be taxed

Fill in the corporation’s name and address and enter the

to the shareholders of the corporation rather than to the

appropriate information in items A through E.

corporation itself, with certain exceptions.

Enter in the space provided the name, address, and federal

Who May Revoke – Once the election not to be a tax-

identifying number (social security number for individuals

option corporation for Wisconsin purposes has been

and federal employer identification number for estates,

completed, it remains in effect for the corporation and any

qualified trusts, and exempt organizations) of each share-

successors for at least the next 4 taxable years after the

taxable year to which the election first applies. After this

holder who is signing the revocation. Also enter for each

shareholder the number of shares owned and the date the

5-year period, the “opt-out” election may be revoked. The

stock was acquired. If the shareholder acquired stock on

revocation requires the consent of persons who hold more

more than one date, enter the last date on which that share-

than 50% of the shares of the S corporation on the day the

holder acquired stock. Each shareholder must sign in the

revocation is made.

space indicated. If the stock is held as community property

or if the income from the stock is community property, the

Exception: The “opt-out” election is automatically revoked

consent must be signed by both husband and wife. Wis-

for the taxable year in which a federal S corporation

acquires a qualified Subchapter S subsidiary (QSub) for

consin’s marital property is a form of community property.

federal purposes. Since neither the S corporation nor the

QSub may elect out of Wisconsin tax-option (S) treatment,

If you need additional space, attach a schedule containing

it is not necessary to file Form 5R.

the required information.

An authorized officer of the corporation must sign this form

When to Revoke – You must file Form 5R on or before

the due date, or extended due date, of the first Wisconsin

in the space provided.

corporation franchise or income tax return affected by the

revocation.

Form 5r - Wisconsin Revocation Of Election By An S Corporation Not To Be A Tax-Option Corporation Page 2

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