Form 5E Instructions
After the due date, or extended due date, for filing the
General Instructions
corporation’s Wisconsin franchise or income tax return has
Purpose of Form – A corporation that is an S corporation
passed, the “opt-out” election cannot be withdrawn, and it
for federal income tax purposes uses Form 5E to elect not
remains effective for the corporation and any successors
to be a tax-option corporation for Wisconsin tax purposes.
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
How to Elect – The election not to be a tax-option cor-
Form 5R, Revocation of Election by an S Corporation Not
poration for Wisconsin requires the consent of persons
to Be a Tax-Option Corporation.
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
Exception: The “opt-out” election is automatically revoked
(QSub) for federal purposes, neither the S corporation
for the taxable year in which a federal S corporation ac-
nor the QSub may elect out of Wisconsin tax-option (S)
quires a QSub. In this case, it is not necessary to file Form
treatment.
5R. You must use Wisconsin Form 5S to report the income
of the corporation and its QSub.
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
Specific Instructions
election. The election is completed by the filing of a Wiscon-
sin franchise or income tax return in accordance with the
Fill in the corporation’s name and address and enter the
election. Use Wisconsin Form 4 or Form 5, as appropriate.
appropriate information in items A through E.
Caution: Since the corporation will be filing federal Form
1120S, special adjustments may be required to properly
Enter in the space provided the name, address, and federal
determine Wisconsin net income.
identifying number (social security number for individuals
and federal employer identification number for estates,
Revoking the Election – You may withdraw the “opt-
qualified trusts, and exempt organizations) of each share-
out” election prior to the date of filing the corporation’s
holder who is signing the election. Also enter for each
Wisconsin franchise or income tax return by sending a
shareholder the number of shares owned and the date the
letter, signed by shareholders holding more than 50% of
stock was acquired. If the shareholder acquired stock on
the corporation’s stock, to the Department of Revenue on
more than one date, enter the last date on which that share-
or before the due date, including extensions, of the corpo-
holder acquired stock. Each shareholder must sign in the
ration’s return. If the corporation’s return was filed before
space indicated. If the stock is held as community property
the due date, or extended due date, you may withdraw
or if the income from he stock is community property, the
the election by filing an amended Wisconsin franchise or
consent must be signed by both husband and wife. Wis-
income tax return, Form 5S, along with a letter requesting
consin’s marital property is a form of community property.
the withdrawal of the “opt-out” election on or before the
due date or extended due date.
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.