Arkansas Administrative Code
Agency 006 - Department of Finance and Administration
Division 05 - Division of Revenues
1998-1 - Comprehensive Corporation Income Tax Regulations
Rule 26-51-413 - CORPORATE LIQUIDATIONS
Rule 2.26-51-413 - Election of Subchapter S Corporation Status

Universal Citation: AR Admin Rules 2.26-51-413
Current through Register Vol. 49, No. 9, September, 2024

A taxpayer who has elected to be treated as an S corporation for federal income tax purposes but not for state income tax purposes (therefore retaining its C corporation status), must file a §338 election with the Department's Individual Income Tax Section stating that it desires to be taxed in accordance with IRC Section 338. This is so despite the fact that the taxpayer may already have a §338 election on file with the IRS.

If the taxpayer has elected to be treated as an S corporation for both federal and state income tax purposes, and the taxpayer has also filed a §338 election with the IRS, the taxpayer need not file a separate §338 election with the Department. The taxpayer will automatically receive §338 treatment by the Department for state income tax purposes as well.

If the taxpayer has elected to be treated as a C corporation for both federal and state income tax purposes, and the taxpayer has also filed a §338 election with the IRS, the taxpayer need not file a separate §338 election with the Department. The taxpayer will automatically receive §338 treatment by the Department for state income tax purposes as well.

Disclaimer: These regulations may not be the most recent version. Arkansas may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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