Form 586 Oklahoma Pass-through Entity Election Form

What Is Oklahoma Form 586?

Form 586 is a critical document utilized by certain business entities in the state of Oklahoma. Specifically designed for pass-through entities, such as partnerships, S corporations, and limited liability companies (LLCs). 

This form allows these entities to elect to pay state income tax at the entity level rather than having their income "pass-through" to be reported and taxed on the individual tax returns of the owners or beneficiaries. The document is a declaration that changes the way the entity and its owners report and pay state income taxes.

Who needs to file 586 form?

The need to file Form 586 is specific to pass-through entities that have made the decision to be taxed at the entity level. It is an opt-in form, meaning it's not required unless the election is desired. Entities must carefully consider their eligibility and whether this election aligns with their tax strategy before proceeding to file.

How to Fill Out the Form 586

Filling out this Oklahoma form template accurately is essential to ensure that the Pass-through Entity Election is processed correctly by the Oklahoma Tax Commission. Here are the key steps you should follow:

1. Begin by entering the Federal Employer Identification Number (FEIN) in the designated area at the top of the form.
2. Indicate the entity type by checking the corresponding box, either "Partnership" or "S-Corp."
3. Provide the entity's legal name exactly as it is registered.
4. Enter the complete address of the entity, including street address, city, state, and ZIP code.
5. Include a current contact phone number with area code for the entity.
6. For entities electing to become a pass-through entity (PTE), mark the checkbox if applicable.
7. Specify the tax year for which the election is effective by entering the four-digit year.
8. Indicate the period the election covers by filling in the start and end dates using the MM/DD/YYYY format.
9. Answer whether the entity filed an Oklahoma income tax return in the previous year by checking the appropriate 'Yes' or 'No' response.
10. If the entity wishes to revoke its pass-through election, mark the checkbox in the revocation section.
11. State the tax year when the revocation is intended to take effect by entering the four-digit year.
12. Detail the period the revocation will cover by providing the start and end dates in the MM/DD/YYYY format.
13. Print your name, indicate your title within the entity, sign, and date the form to validate the document.

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