reglab/statecodes huggingface dataset:
Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 50 - Income › Subchapter 17 - Oklahoma Taxable Income for Corporations › Part 1 - GENERAL PROVISIONS › Section 710:50-17-3 - What constitutes "Nexus"

Current through Vol. 41, No. 20, July 1, 2024
(a) If
				  a corporation has one or more of the following activities in Oklahoma, it is
				  considered to have
"nexus"
and shall be subject to Oklahoma income
				  taxes:
(1) Maintenance of any business
				  location in Oklahoma, including any kind of office.
(2) Ownership of real estate in Oklahoma.
(3) Ownership of a stock of goods
				  in a public warehouse or on consignment in Oklahoma.
(4) Ownership of a stock of goods in the
				  hands of a distributor or other non-employee representative in Oklahoma, if
				  used to fill orders for the owner's account.
(5) Usual or frequent activity in Oklahoma by
				  employee or representative soliciting orders with authority to accept
				  them.
(6) Usual or frequent
				  activity in Oklahoma by employee or representative engaged in a purchasing
				  activity or in the performance of services (including construction,
				  installation, assembly, or repair of equipment).
(7) Operation of mobile stores in Oklahoma
				  (such as trucks with driver-salespersons), regardless of frequency.
(8) Other miscellaneous activities by
				  employees or representatives in Oklahoma such as credit investigations,
				  collection of delinquent accounts, conducting training classes or seminars for
				  customer personnel in the operation, repair and maintenance of its
				  products.
(9) Leasing of tangible
				  property and licensing of intangible rights for use in Oklahoma.
(10) The sale of other than tangible personal
				  property such as real estate, services and intangibles in Oklahoma.
(11) The performance of construction
				  contracts or service contracts in Oklahoma.
Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 50 - Income › Subchapter 17 - Oklahoma Taxable Income for Corporations › Part 1 - GENERAL PROVISIONS › Section 710:50-17-4 - Federal limitations on taxation of foreign corporations

Current through Vol. 41, No. 20, July 1, 2024
(a) Under Federal
				  law a state may not impose its income tax on a business selling tangible
				  personal property, if the only activity of that business is the solicitation of
				  orders by its salesman or representative which orders are sent outside the
				  state for approval or rejection, and are filled by delivery from a point
				  outside the state. The activity must be limited to solicitation. If there is
				  any activity which exceeds solicitation, the immunity from taxation is
				  lost.
(b) Immunity from income
				  taxation by states under Federal law does not extend to:
(1) Those businesses which sell services,
				  real estate or intangibles in more than one state;
(2) Domestic Corporations;
(3) Foreign nation corporations, i.e., those
				  not incorporated in the United States.
Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 50 - Income › Subchapter 17 - Oklahoma Taxable Income for Corporations › Part 1 - GENERAL PROVISIONS › Section 710:50-17-5 - Tax rate for corporations

Current through Vol. 41, No. 20, July 1, 2024
(a) For
				  all taxable years beginning before January 1, 1985, the corporate tax rate is
				  four percent (4%).
(b) For all
				  taxable years beginning after December 31, 1984, the corporate tax rate is five
				  percent (5%).
(c) For all taxable
				  years beginning after December 31, 1989, the corporate tax rate is six percent
				  (6%).
(d) For all taxable years
				  beginning after December 31, 2021, the corporate tax rate is four percent
				  (4%).
Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 50 - Income › Subchapter 17 - Oklahoma Taxable Income for Corporations › Part 1 - GENERAL PROVISIONS › Section 710:50-17-6 - Filing requirements for corporations

Current through Vol. 41, No. 20, July 1, 2024
(a) Every corporation doing business in
				  Oklahoma shall file an OTC Form 512 to report taxable income or loss for each
				  period in which a Federal Tax Return is required. Every return shall be
				  properly prepared, showing the name of corporation, address, identification
				  number and bearing an authorized signature. Page one of the return shall also
				  be completed with all pertinent information entered on appropriate lines. (The
				  returns will not process otherwise).
(b) In the case of a complete liquidation or
				  the dissolution of a corporation, the return shall be filed on or before the
				  15th day of the fourth month following the month in which the corporation is
				  completely liquidated or dissolved.
Amended at 9 Ok Reg
					 3031, eff 7-13-92
Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 50 - Income › Subchapter 17 - Oklahoma Taxable Income for Corporations › Part 1 - GENERAL PROVISIONS › Section 710:50-17-7 - Amended income tax returns for corporations

Current through Vol. 41, No. 20, July 1, 2024
In order to assist in the processing of a corporation's
					 amended income tax return, corporations must use OTC Form 512X for tax years
					 prior to 2013. Beginning with tax year 2013, OTC Form 512 must be used and the
					 appropriate box indicating that the return is an amended return must be marked.
					 The documentation described in (1) through (4) of this subsection must be
					 included, when applicable, or an explanation when not applicable, or the refund
					 may be denied:
(1) Copy of the Federal
				  Form 1120X or 1139. If the taxpayer files a federal consolidated income tax
				  return, Form 1120X must detail the changes by entity.
(2) Proof of disposition by the Internal
				  Revenue Service.
(3) Copy of
				  complete Revenue Agent's Report. If the taxpayer files a federal consolidated
				  income tax return, the Revenue Agent's Report must detail the changes by
				  entity.
(4) Schedule of NOL
				  carryback/carryover.
Amended at 18 Ok Reg
					 2810, eff 6-25-01
Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 50 - Income › Subchapter 17 - Oklahoma Taxable Income for Corporations › Part 3 - CONSOLIDATED RETURNS › Section 710:50-17-30 - Consolidated returns

Current through Vol. 41, No. 20, July 1, 2024
A consolidated Oklahoma Income Tax Return is required if a
					 Federal Consolidated Return is filed, and each member of the consolidated group
					 derives all of its income from sources within Oklahoma.
Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 50 - Income › Subchapter 17 - Oklahoma Taxable Income for Corporations › Part 3 - CONSOLIDATED RETURNS › Section 710:50-17-31 - Filing a consolidated Oklahoma return

Current through Vol. 41, No. 20, July 1, 2024
(a) In filing a Consolidated Income Tax
				  Return for Oklahoma, the Oklahoma taxable income for each corporation is
				  computed separately on its own factors and then combined for one total income
				  upon which the tax is computed.
(b)
				  A Consolidated Oklahoma Income Tax Return is generally recognized as a combined
				  return.
(c) A corporation's
				  election to file a separate return or consolidated return is made with the
				  timely filing of the return. Once the election is made, it is irrevocable for
				  all future tax years unless the Oklahoma Tax Commission releases the affiliated
				  group of corporations from such election.
(d) When an election is made to file an
				  Oklahoma Combined Return the following criteria must be met.
(1) A federal consolidated returns must have
				  been filed.
(2) All companies doing
				  business in Oklahoma must be included in the Oklahoma Combination.
(3) Only those corporations included in the
				  federal consolidation may be included in the Oklahoma combined
				  return.
(4) The Parent Corporation
				  name should be used for the Oklahoma return and all corporations must be
				  included in one filing. Returns belonging to a Oklahoma Combination will not be
				  accepted if mailed in separately. [
See:
68 O.S. §
											2367
				  ]
Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 50 - Income › Subchapter 17 - Oklahoma Taxable Income for Corporations › Part 3 - CONSOLIDATED RETURNS › Section 710:50-17-32 - When a consolidated return is not required

Current through Vol. 41, No. 20, July 1, 2024
A Consolidated Oklahoma Income Tax Return is not required
					 if two or more corporations file Federal Consolidated Returns, and one or more
					 of such corporations derive a portion of their income from sources without
					 Oklahoma; except, if such group files an appropriate election to file a
					 Consolidated Oklahoma Income Tax Return, such a grouping will be
					 allowed.
Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 50 - Income › Subchapter 17 - Oklahoma Taxable Income for Corporations › Part 3 - CONSOLIDATED RETURNS › Section 710:50-17-33 - Examples of consolidated Oklahoma income tax returns

Current through Vol. 41, No. 20, July 1, 2024
The following are examples of situations in which the
					 corporations may file a Consolidated Oklahoma Income Tax Return:
(1) Corporations A, B and C, filing a Federal
				  Consolidated Return and all of their income is derived from Oklahoma sources,
				  would be required to file an Oklahoma Consolidated Return.
(2) Corporations A, B and D, filing a Federal
				  Consolidated Return and any of them derives a portion of its income from
				  without Oklahoma are not required, but may elect to file a Consolidated
				  Oklahoma Return. This election may be made by attaching a statement to the
				  return, stating the facts.
(3)
				  Corporations A, B and E filing a Federal Consolidated Return and any of them
				  received all of its income from sources without Oklahoma are not required, but
				  may elect to file an Oklahoma Consolidated Return.
Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 50 - Income › Subchapter 17 - Oklahoma Taxable Income for Corporations › Part 5 - DETERMINATION OF TAXABLE CORPORATE INCOME › Section 710:50-17-50 - Computation of income attributable to Oklahoma

Current through Vol. 41, No. 20, July 1, 2024
The starting point for computing Oklahoma taxable corporate
					 income is the taxable income shown before the Net Operating Loss and Special
					 Deduction Line of the Federal Income Tax Return. All adjustments provided for
					 under Oklahoma Income Tax Statutes are made from the starting point of Federal
					 taxable income. Federal taxable income is used for each separate corporation
					 doing business in Oklahoma, whether a Consolidated Federal or a Consolidated
					 Oklahoma Income Tax Return is filed.
Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 50 - Income › Subchapter 17 - Oklahoma Taxable Income for Corporations › Part 5 - DETERMINATION OF TAXABLE CORPORATE INCOME › Section 710:50-17-51 - Adjustments to arrive at Oklahoma taxable income for corporations

Current through Vol. 41, No. 20, July 1, 2024
The following is a partial list and not inclusive of all
					 the allowable and unallowable adjustments that may be made to Federal taxable
					 income to arrive at Oklahoma taxable income for corporations:
					 [
See:
68 O.S. § 2358]
(1)
Taxes based on income.
[
See:
68 O.S. § 2358(A)(5)]
(A) Taxes based on or measured by income
				  shall not be allowed as a deduction.
(B) Type of taxes that are based on or
				  measured by income are:
(i) State and Local
				  Income Taxes,
(ii) Foreign Income
				  Taxes, and
(iii) some Franchise
				  Taxes that are based on or measured by income.
Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 50 - Income › Subchapter 17 - Oklahoma Taxable Income for Corporations › Part 5 - DETERMINATION OF TAXABLE CORPORATE INCOME › Section 710:50-17-51 - through Adjustments to arrive at Oklahoma taxable income for corporations

Current through Vol. 41, No. 20, July 1, 2024
The following is a partial list and not inclusive of all
					 the allowable and unallowable adjustments that may be made to federal taxable
					 income to arrive at Oklahoma taxable income for corporations:
					 [
See:
68 O.S. § 2358]
(1)
Taxes based on income.
[
See:
68 O.S. § 2358(A)(5)]
(A) Taxes based on or measured by income
				  shall not be allowed as a deduction.
(B) Type of taxes that are based on or
				  measured by income are:
(i) State and Local
				  Income Taxes,
(ii) Foreign Income
				  Taxes, and
(iii) some Franchise
				  Taxes that are based on or measured by income.
Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 50 - Income › Subchapter 17 - Oklahoma Taxable Income for Corporations › Part 7 - APPORTIONMENT AND ALLOCATION OF CORPORATE INCOME AND EXPENSE › Section 710:50-17-70 - Unitary income; unitary business

Current through Vol. 41, No. 20, July 1, 2024
"Unitary income"
means income derived from the
					 conduct of each separate business in more than one state, all the factors or
					 which are essential to determining the ultimate gain derived from the business
					 enterprise as a whole, and not from its component parts which are too closely
					 connected and necessary to each other to justify division or separate
					 allocation. Each corporation must calculate its own Oklahoma Taxable
					 Income/Loss separately, even when included in a Consolidated
					 Return.
Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 50 - Income › Subchapter 17 - Oklahoma Taxable Income for Corporations › Part 7 - APPORTIONMENT AND ALLOCATION OF CORPORATE INCOME AND EXPENSE › Section 710:50-17-71 - Apportionment formula factors

Current through Vol. 41, No. 20, July 1, 2024
Income or loss derived from a unitary business enterprise
					 shall be apportioned to Oklahoma on the basis of the average of three factors
					 consisting of property, payroll and sales or gross revenue. Notwithstanding the
					 general rule on averaging of the three apportionment factors, for corporations
					 that, on or after July 1, 1997, make an initial investment in property or
					 expansion of their property or facilities in Oklahoma and such initial
					 investment cost or expansion investment costs equals or exceed Two Hundred
					 Million Dollars ($200,000,000.00), the three factors shall be apportioned with
					 property and payroll each comprising twenty-five percent (25%) and sales
					 comprising fifty percent (50%). For such an initial investment or expansion
					 investment occurring after January 1, 2000, a corporation shall qualify for use
					 of the specially-weighted apportionment on or after the time it first incurs
					 any amount or part of such investment cost, if the total amount thereof equals
					 or exceeds Two Hundred Million ($200,000,000.00) within a period not exceeding
					 three (3) years. [
See:
68 O.S. §
										2358(A)(5)
					 ]
(1)
Sales factor.
(A)
Sales factor.
The sales
				  factor shall include only sales and does not include sales or revenue which are
				  separately allocated. [
See:
68 O.S. §
											2358(A)(5)(c)
				  ]
(i) Oklahoma does not allow receipts from
				  items other than sales to be included in the formula even though other types of
				  income (royalties, interest, capital gains, and other income) are included in
				  the apportioned income.
(ii)
				  Receipts from the performance of services shall be included in the numerator of
				  the fraction if the receipts are derived from customers within this state or if
				  the receipts are otherwise attributable to this state's marketplace. [See 68
				  O.S. §
												2358(A)(5)
				  ]. A "
customer within Oklahoma
" means
(I) a customer that is engaged in a trade or
				  business and maintains a regular place of business in Oklahoma, or
(II) a customer that is not engaged in a
				  trade or business whose billing address is in Oklahoma. A "
billing
				  address
" means the location indicated in the books and records of the
				  taxpayer as the address of record where the bill relating to the customer's
				  account is mailed.
(iii)
				  The provisions of (A), (A)(i) and (A)(ii) of this paragraph apply to the sales
				  factor for most corporations with the exception of gross receipts being used as
				  a basis for a financial organization or other organizations whose sales do not
				  represent their principal activity.
Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 50 - Income › Subchapter 19 - Oklahoma Taxable Income for Partnerships › Section 710:50-19-2 - Amended return for partnerships

Current through Vol. 41, No. 20, July 1, 2024
If after the partnership files its income tax return, it
				  later becomes aware of any changes to be made to income, deductions, credits,
				  etc.; or if corrected due to an Internal Revenue Service audit; the Partnership
				  shall file OTC Form 514 labeled "Amended" at the top of page
1. Attach a copy of the Federal Amended 1065
				or a copy of the Federal Audit Changes to the Oklahoma Amended Return. Each
				partner shall be given a corrected K-1, reflecting Oklahoma distributable
				income, as adjusted.
Amended at 9 Ok Reg
				  3031, eff 7-13-92
Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 50 - Income › Subchapter 19 - Oklahoma Taxable Income for Partnerships › Section 710:50-19-3 - Reporting the gain on the sale, exchange, or other disposition of property for which a Section 179 expense deduction was passed through to partners

Current through Vol. 41, No. 20, July 1, 2024
(a) The gain on the
				sale, exchange, or other disposition of property for which a Section 179
				expense deduction was passed through to partners is reported as Supplemental
				Information on the Federal K-1. For Oklahoma purposes, report such gain on OTC
				Form 514. Additional information is also required, as follows:
(1) A description of the property;
(2) The date the property was
				acquired;
(3) The date the property
				was sold;
(4) The gross sales
				price;
(5) The cost or other basis,
				plus expense of sale, including the partnership's basis reduction in the
				property due to the Section 179 expense deduction;
(6) The depreciation allowed or allowable,
				excluding the Section 179 expense deduction; and,
(7) The amount of Section 179 expense
				deduction, if any, passed through to each partner for the property, and the
				partnership's tax year(s) in which the amount was passed through.
Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 50 - Income › Subchapter 19 - Oklahoma Taxable Income for Partnerships › Section 710:50-19-4 - Partnerships that make an election under the Pass-Through Entity Tax Equity Act of 2019

Current through Vol. 41, No. 20, July 1, 2024
Pursuant to the Pass-Through Entity Tax Equity Act of 2019
				  (68 O.S. $ 2355.lP-1 et seq.), a partnership may elect to pay income tax at the
				  entity level, effective for tax year 2019 and subsequent tax years. The
				  Oklahoma income, gains, losses or deductions of a partnership that is an
				  electing pass-through entity shall not be used to calculate the Oklahoma
				  taxable income of the partners, members or shareholders. [See:
				  710:50:3-49]
Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 50 - Income › Subchapter 19 - Oklahoma Taxable Income for Partnerships › Section 710:50-19-5 - Add-back of federal depreciation for Oklahoma income tax purposes

Current through Vol. 41, No. 20, July 1, 2024
For tax years beginning on or after January 1, 2023,
				  partnerships have the option for immediate and full expensing of qualified
				  property and qualified improvement property by deducting the full cost of these
				  expenditures in the tax year in which the cost is incurred or the property is
				  placed in service. [68 O.S. § 2358.6A] If this option is taken, amounts
				  that are depreciated for federal income tax purposes shall be added back to the
				  Oklahoma distributive share of partnership income in the year the depreciation
				  is claimed. The taxpayer's decision to use immediate expensing for a qualified
				  property or qualified improvement property in the year the investment cost is
				  incurred is irrevocable for the property unless specifically authorized by the
				  Oklahoma Tax Commission.
Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 50 - Income › Subchapter 20 - Limited Liability Companies › Section 710:50-20-1 - Limited liability companies

Current through Vol. 41, No. 20, July 1, 2024
(a) A
				limited liability company (LLC) which registers with the Secretary of State
				shall file an income tax return in the same manner as required under the
				Internal Revenue Code as amended. All rulings as issued by the Internal Revenue
				Service shall be binding in regards to the filing of tax returns and the
				reporting of income. A domestic limited liability company shall be treated the
				same and taxed as a domestic partnership and a foreign limited liability
				company shall be treated the same and taxed as a foreign partnership, provided
				that such domestic or foreign limited liability companies are classified as
				partnerships for federal purposes. [
See:
68 O.S. §
									202
				]
(b) Income from the organization
				(LLC) shall be reported to Oklahoma as provided for under 68 O.S. §
									2358
				and on the same form as prescribed under federal regulations.
(c) Operations carried on within and without
				the State of Oklahoma by an LLC shall be the same as for corporations, sub S
				corporations, partnerships, and any other organization which are covered under
				Public Law 86-272. The activities set out by Subsection A of 18 O.S. §
									2049
				shall not be considered when determining the transaction of business for
				Oklahoma income tax purposes. [
See:
18 O.S. §
									2049(C)
				]
Added at 10 Ok Reg 3837,
				  eff 7-12-93; Amended at 11 Ok Reg 555, eff 11-10-93 (emergency); Amended at 11
				  Ok Reg 3497, eff 6-26-94; Amended at 28 Ok Reg 935, eff
				  6-1-11
Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 50 - Income › Subchapter 21 - Oklahoma Taxable Income for "S" Corporations › Section 710:50-21-1 - Subchapter "S" Corporations and 512S Oklahoma returns

Current through Vol. 41, No. 20, July 1, 2024
(a) A corporation
				having an election in effect under Subchapter S of the Internal Revenue Code
				shall not be subject to the Oklahoma income tax on the corporation. However, if
				any of the shareholders of such corporation are nonresidents of Oklahoma during
				any part of the corporation's taxable year, the corporation shall be taxed for
				such year on the nonresident shareholder's distributive share of income, unless
				the corporation files with its return for such year an agreement executed by
				each nonresident stockholder stating that such nonresident will file an
				Oklahoma Income Tax Return reporting his portion of Oklahoma taxable
				income.
(b) The shareholders of a
				Subchapter "S" Corporation shall include in their taxable income their
				distributive share of such corporation's Federal income, subject to the
				modifications as set forth in 68 O.S. §
									2358
				and 68 O.S. §2362.
(c) A
				Subchapter "S" corporation that files its return without including necessary
				nonresident shareholder agreements, shall be taxed on such nonresident(s)
				shareholders distributive share of income. The method of filing the return
				shall be irrevocable for each tax period once the return is filed. However, if
				a nonresident shareholder fails to file his individual Oklahoma Income Tax
				Return the corporation will be assessed the tax.
Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 50 - Income › Subchapter 21 - Oklahoma Taxable Income for "S" Corporations › Section 710:50-21-1 - Subchapter "S" corporations and 512S Oklahoma returns

Current through Vol. 41, No. 20, July 1, 2024
(a) A corporation
				having an election in effect under Subchapter S of the Internal Revenue Code
				shall not be subject to the Oklahoma income tax on the corporation. However, if
				any of the shareholders of such corporation are nonresidents of Oklahoma during
				any part of the corporation's taxable year, the corporation shall be taxed for
				such year on the nonresident shareholder's distributive share of income, unless
				the corporation files with its return for such year an agreement executed by
				each nonresident stockholder stating that such nonresident will file an
				Oklahoma Income Tax Return reporting his portion of Oklahoma taxable
				income.
(b) The shareholders of a
				Subchapter "S" Corporation shall include in their taxable income their
				distributive share of such corporation's Federal income, subject to the
				modifications as set forth in 68 O.S. §2358 and 68 O.S.
				§2362.
(c) For tax years
				beginning on or after January 1, 2022, a Subchapter "S" Corporation has the
				option for immediate and full expensing of qualified property and qualified
				improvement property by deducting the full cost of these expenditures in the
				tax year in which the cost is incurred or the property is placed in service.
				[68 O.S. § 2358.6A] If this option is taken, amounts that are depreciated
				for federal income tax purposes in future tax years shall be added back to the
				distributive share of such corporation's federal income in the year the
				depreciation is claimed. The taxpayer's decision to use immediate expensing for
				a qualified property or qualified improvement property in the year the
				investment cost is incurred is irrevocable for the property unless specifically
				authorized by the Oklahoma Tax Commission.
(d) A Subchapter "S" corporation that files
				its return without including necessary nonresident shareholder agreements,
				shall be taxed on such nonresident(s) shareholders distributive share of
				income. The method of filing the return shall be irrevocable for each tax
				period once the return is filed. However, if a nonresident shareholder fails to
				file his individual Oklahoma Income Tax Return the corporation will be assessed
				the tax.
Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 50 - Income › Subchapter 21 - Oklahoma Taxable Income for "S" Corporations › Section 710:50-21-1 - through Subchapter "S" corporations and 512S Oklahoma returns

Current through Vol. 41, No. 20, July 1, 2024
(a) A corporation
				having an election in effect under Subchapter S of the Internal Revenue Code
				shall not be subject to the Oklahoma income tax on the corporation. However, if
				any of the shareholders of such corporation are nonresidents of Oklahoma during
				any part of the corporation's taxable year, the corporation shall be taxed for
				such year on the nonresident shareholder's distributive share of income, unless
				the corporation files with its return for such year an agreement executed by
				each nonresident stockholder stating that such nonresident will file an
				Oklahoma income tax return reporting his or her portion of Oklahoma taxable
				income.
(b) The shareholders of a
				Subchapter "S" Corporation shall include in their taxable income their
				distributive share of such corporation's federal income, subject to the
				modifications as set forth in 68 O.S. §2358 and 68 O.S.
				§2362.
(c) For tax years
				beginning on or after January 1, 2023, a Subchapter "S" Corporation has the
				option for immediate and full expensing of qualified property and qualified
				improvement property by deducting the full cost of these expenditures in the
				tax year in which the cost is incurred or the property is placed in service.
				[68 O.S. § 2358.6A] If this option is taken, amounts that are depreciated
				for federal income tax purposes shall be added back to the distributive share
				of such corporation's federal income in the year the depreciation is claimed.
				The taxpayer's decision to use immediate expensing for a qualified property or
				qualified improvement property in the year the investment cost is incurred is
				irrevocable for the property unless specifically authorized by the Oklahoma Tax
				Commission.
(d) A Subchapter "S"
				corporation that files its return without including necessary nonresident
				shareholder agreements, shall be taxed on such nonresident(s) shareholders
				distributive share of income. The method of filing the return shall be
				irrevocable for each tax period once the return is filed. However, if a
				nonresident shareholder fails to file his or her individual Oklahoma income tax
				return the corporation will be assessed the tax.
Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 50 - Income › Subchapter 21 - Oklahoma Taxable Income for "S" Corporations › Section 710:50-21-2 - Amended return for Subchapter "S" Corporations

Current through Vol. 41, No. 20, July 1, 2024
If after the Subchapter "S" Corporation files its income tax
				  return, it later becomes aware of any changes it must make to income,
				  deductions, credits, etc., or if corrected due to an Internal Revenue Service
				  audit, the Subchapter "5" shall file OTC Form 5125 labeled "Amended" at the top
				  of page
1. Attach a copy of the
				Federal Amended 11205 or a copy of the Federal Audit changes to the Oklahoma
				Amended Return. Each share holder shall be given a corrected K-1 reflecting
				Oklahoma Distributable Income as adjusted.
Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 50 - Income › Subchapter 21 - Oklahoma Taxable Income for "S" Corporations › Section 710:50-21-3 - Reporting the gain on the sale, exchange, or other disposition of property for which a Section 179 expense deduction was passed through to shareholders

Current through Vol. 41, No. 20, July 1, 2024
(a) The gain on
				the sale, exchange, or other disposition of property for which a Section 179
				expense deduction was passed through to shareholders is reported as
				Supplemental Information on the Federal K-1. For Oklahoma purposes, report such
				gain on OTC Form 512S. Additional information is also required, as follows:
(1) A description of the property;
(2) The date the property was
				acquired;
(3) The date the property
				was sold;
(4) The gross sales
				price;
(5) The cost or other basis,
				plus expense of sale, including the partnership's basis reduction in the
				property due to the Section 179 expense deduction;
(6) The depreciation allowed or allowable,
				excluding the Section 179 expense deduction; and,
(7) The amount of Section 179 expense
				deduction, if any, passed through to each shareholder for the property, and the
				S-Corporation's tax year(s) in which the amount was passed through.
Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 50 - Income › Subchapter 21 - Oklahoma Taxable Income for "S" Corporations › Section 710:50-21-4 - S Corporations that make an election under the Pass-Through Entity Tax Equity Act of 2019

Current through Vol. 41, No. 20, July 1, 2024
Pursuant to the Pass-Through Entity Tax Equity Act of 2019
				  (68 O.S. S 2355.lP-1 et seq.), a Subchapter S Corporation may elect to pay
				  income tax at the entity level, effective for tax year 2019 and subsequent tax
				  years. The Oklahoma income, gains, losses or deductions of a Subchapter S
				  Corporation that is an electing pass-through entity shall not be used to
				  calculate the Oklahoma taxable income of the partners, members or shareholders.
				  [See: 710:50:3-49]
Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 50 - Income › Subchapter 23 - Fiduciary Reporting › Section 710:50-23-1 - Fiduciaries

Current through Vol. 41, No. 20, July 1, 2024
(a)
State
				income tax reporting requirements.
(1)
				The Income tax period of an estate is initially established the day following
				the date of death and the estate representative may elect an annual closing
				period for the estate to be the last day of any month not to exceed twelve
				months. Once an estate tax period has been established, it will remain the same
				throughout the period of administration up to and including the final decree
				and court order for distribution.
(2) During the period of the administration
				of an estate, the liability for the filing of an Oklahoma Income Tax Return for
				the estate and the payment of any tax due, shall be that of the representative
				of the estate.
(3) Only that income
				properly paid, credited or distributed to the beneficiaries, pursuant to a
				court order or under the terms of the will, may be deducted from the income of
				the estate.
(4) The Court Order for
				Final Decree is deemed to distribute both income and corpus, therefore the
				amounts of income generated during such final period must be shown on the final
				Oklahoma Income Tax Return of the estate as a distribution showing also the
				name, address and social security number of each beneficiary, as well as the
				amounts and types of income so distributed to each.
(5) The representative of the estate, such as
				the administrator, executor or personal representative, is responsible for
				reporting the correct amount of income tax due for all years of the estate and
				must secure a certificate of clearance from the Oklahoma Tax Commission,
				disclaiming any further Oklahoma Income Taxes due or owing by the decedent or
				the estate for which the representative acts.
(6) Wills and/or Trust Instruments shall be
				filed with the initial filing of Trust or Estate return, so the flow of income
				can be determined.
(7) Returns of
				Trusts and Estates are due on the 15th day of the fourth month following the
				close of the taxable year.
Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 50 - Income › Subchapter 23 - Fiduciary Reporting › Section 710:50-23-2 - Amended return for fiduciaries

Current through Vol. 41, No. 20, July 1, 2024
(a) If
				a fiduciary is required or elects to file a Fiduciary Amended Return, the
				Fiduciary shall file an OTC Form 513, write "Amended" on the face of the return
				and attach the following or attach an explanation if the following is not
				applicable:
(1) A copy of the Amended Federal
				Fiduciary Return, Form 1041, or Federal Form 1045.
(2) Proof that Internal Revenue Service has
				accepted the claim, such as a copy of the statement of adjustment, any
				correspondence from Internal Revenue Service, or a copy of the deposit slip of
				the Federal refund.
(3) Supporting
				documents for any adjustments to Federal Taxable Income to arrive at the
				Oklahoma Taxable Income.
(4) An
				explanation for the filing of a Fiduciary Amended Tax Return.
Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 50 - Income › Subchapter 25 - Bankruptcy › Section 710:50-25-1 - General provisions; bankruptcy

Current through Vol. 41, No. 20, July 1, 2024
The Fiduciary must file OTC Form 513 for the Estate of an
				  individual involved in bankruptcy proceedings, if a Federal Income Tax Return
				  is required for the Bankruptcy Estate. Use OTC Form 513 as a transmittal for
				  OTC Form 511. Complete the tax for the Bankruptcy Estate on the OTC Form 511,
				  by using the instructions and tax rate schedules for a married person, filing
				  separately. Enter the computed tax on OTC Form 513, line 23, and remit payment
				  of any tax due.
Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 50 - Income › Subchapter 27 - Banks and Credit Unions › Section 710:50-27-1 - Banks and credit unions subject to "in lieu" tax

Current through Vol. 41, No. 20, July 1, 2024
(a) Every state banking association, national
				banking association and credit union organized under the laws of this State,
				located or doing business within the limits of the State of Oklahoma is subject
				to a privilege tax. The basis of the tax shall be United States taxable income
				as defined by 68 O.S. 2353(10) and any adjustments as determined pursuant to 68
				O.S. 2358 and the adjustments under 68 O.S. 2370(D)(1) and 68 O.S.
				2370(D)(2).
(b) State and national
				banks and state credit unions making a Federal Subchapter "S" election, shall
				not pay the "in lieu" tax. Rather, the income or loss in these cases shall be
				reported at the shareholder level, pursuant to the provisions of 68 O.S.
				§§
									2363
				and
				2370.2.
Amended at 18 Ok Reg
				  2810, eff 6-25-01
Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 50 - Income › Appendix E - Computation of Adjustment for Expenses Allocated to Nontaxable Income [NEW]

Current through Vol. 41, No. 20, July 1, 2024
A non-Oklahoma domiciled taxpayer has the following beginning
				of year and end of year balance sheets (assets only):
ASSET:
BOY
EOY
COMMENT
Cash
5,000
10,000
Accounts Receivable
100,000
150,000
These assets are the result of the sales of the
							 products sold by the unitary business
Inventory
80,000
120,000
These assets are the products on hand to be sold by
							 the unitary business
US Government Obligations (A)
25,000
50,000
These assets generate interest income from US
							 government obligations not taxable in Oklahoma
Other Current Assets
8,000
10,000
These assets relate to the unitary business
Investments in Subsidiaries (A)
500,000
600,000
These assets may generate dividend income or gain
							 (loss) on sale that is allocated to the taxpayer's domiciliary situs
							 (commercial domicile)
Investments in Corporate Stock (A)
5,000
5,000
These assets may generate dividend income or gain
							 (loss) on sale that is allocated to the taxpayer's domiciliary situs
							 (commercial domicile)
Investments in Partnerships (A)
100,000
120,000
These assets generate partnership income (loss) that
							 is allocated to the state (s) where the partnership has business operations or
							 gain (loss) on sale that is allocated to the taxpayer's domiciliary situs
							 (commercial domicile)
Fixed Assets (Net)
1,000,000
1,500,000
These assets are used in the unitary business to
							 produce the products sold
Intangible Assets (Net)
500,000
600,000
These assets are used in the unitary business to
							 produce the products sold
Long Term Notes Receivable (A)
100,000
100,000
These assets generate interest income not related to
							 working capital that is allocated to the taxpayer's domiciliary situs
							 (commercial domicile)
Other Assets
50,000
50,000
These assets relate to the unitary business
Total Assets
2,473,000
3,315,000
The taxpayer incurs interest expense on borrowed funds
				necessary to operate their overall business. Oklahoma utilizes an asset based
				ratio to allocate the interest expense incurred between the unitary business
				operations and all other activities that do not produce unitary income as
				follows:
ASSET:
BOY
EOY
COMMENT
Assets that may produce allocable or nontaxable
							 income
730,000
875,000
Average assets that may produce allocable or
							 nontaxable income
802,500
73,000 plus 875,000 divided by 2
Average total assets
2,894,000
2,473,000 plus 3,315,000 divided by 2
Ratio of assets that may produce allocable or
							 nontaxable income to total assets
0.27729786
Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 55 - Motor Fuel › Subchapter 1 - General Provisions › Section 710:55-1-1 - Purpose

Current through Vol. 41, No. 20, July 1, 2024
The provisions of this Chapter have been promulgated for the
				  purpose of compliance with the Oklahoma Administrative Procedures Act, 75 O.S.
				  §§
									250. 1 et
				  seq., and to facilitate the administration, enforcement, and collection of
				  taxes and other levies enacted by the Oklahoma Legislature with respect to
				  motor fuels, special fuels, fuel importers, and fuel
				  transporters.
Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 55 - Motor Fuel › Subchapter 1 - General Provisions › Section 710:55-1-2 - Definitions

Current through Vol. 41, No. 20, July 1, 2024
The following words and terms, when used in this Chapter,
				  shall have the following meaning, unless the context clearly indicates
				  otherwise:
"Ethanol",
means "fuel grade ethanol". Also
				  known as ethyl-alcohol or alcohol.
"Farm tractor"
, for purposes of this Chapter,
means all tractor-type, motorized farm implements and equipment, but
				  does not include motor vehicles of the truck-type, pickup truck-type,
				  automobiles, and other motor vehicles required to be registered and licensed
				  under the Oklahoma Vehicle License and Registration
				  Act.
[
See:
68 O.S. §
									500.4(C)
				  ]
"Fuel grade ethanol",
means ethanol that has
				  been blended with at least 2% gasoline per the US Tax and Trade Bureau to
				  render the product unsuitable for human consumption. This product must meet the
				  American Society for Testing and Materials standard in effect January 1, 1995,
				  and successor rules, as the D-4806 specification for denatured fuel grad
				  ethanol for further blending with gasoline for use as automatic spark-ignition
				  engine fuels.
Reserved at 12 Ok Reg
				  2633, eff 6-26-95; Added at 22 Ok Reg 1548, eff 6-11-05; Added at 28 Ok Reg
				  960, eff 6-1-11
Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 55 - Motor Fuel › Subchapter 1 - General Provisions › Section 710:55-1-3 - Additional audit procedures

Current through Vol. 41, No. 20, July 1, 2024
An auditor for the Commission may suggest that a sample motor
				  fuel tax audit, rather than a detailed audit, be performed. The auditor shall
				  select the periods to sample and apply the results to the periods of the audit.
				  The auditor shall prepare forms to be signed by the taxpayer, indicating
				  agreement with the periods and methods used for the sample. [
See:
68 O.S. §
									206
				  ]
Added at 12 Ok Reg 2633,
				  eff 6-26-95
Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 55 - Motor Fuel › Subchapter 3 - Motor Fuel Tax [Revoked] › Section 710:55-3-1 - Computation of motor fuels taxes; itemized schedule [REVOKED]

Current through Vol. 41, No. 20, July 1, 2024
Amended at 9 Ok Reg
				  3023, eff 7-13-92; Amended at 12 Ok Reg 2633, eff 6-26-95; Revoked at 14 Ok Reg
				  1083, eff 1-24-97 (emergency); Revoked at 14 Ok Reg 2346, eff
				  6-12-97
Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 55 - Motor Fuel › Subchapter 3 - Motor Fuel Tax [Revoked] › Section 710:55-3-2 - Persons entitled to deductions for exported gasoline [REVOKED]

Current through Vol. 41, No. 20, July 1, 2024
Revoked at 14 Ok Reg
				  1083, eff 1-24-97 (emergency); Revoked at 14 Ok Reg 2346, eff
				  6-12-97
Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 55 - Motor Fuel › Subchapter 3 - Motor Fuel Tax [Revoked] › Section 710:55-3-3 - Motor fuel or diesel sales to non-licensed purchaser [REVOKED]

Current through Vol. 41, No. 20, July 1, 2024
Revoked at 14 Ok Reg
				  1083, eff 1-24-97 (emergency); Revoked at 14 Ok Reg 2346, eff
				  6-12-97
Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 55 - Motor Fuel › Subchapter 3 - Motor Fuel Tax [Revoked] › Section 710:55-3-4 - Export distributor's bonds [REVOKED]

Current through Vol. 41, No. 20, July 1, 2024
Revoked at 14 Ok Reg
				  1083, eff 1-24-97 (emergency); Revoked at 14 Ok Reg 2346, eff
				  6-12-97
Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 55 - Motor Fuel › Subchapter 3 - Motor Fuel Tax [Revoked] › Section 710:55-3-5 - Certified report of exports [REVOKED]

Current through Vol. 41, No. 20, July 1, 2024
Revoked at 14 Ok Reg
				  1083, eff 1-24-97 (emergency); Revoked at 14 Ok Reg 2346, eff
				  6-12-97
Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 55 - Motor Fuel › Subchapter 3 - Motor Fuel Tax [Revoked] › Section 710:55-3-6 - Export reports must be consistent with records of other states; comity [REVOKED]

Current through Vol. 41, No. 20, July 1, 2024
Revoked at 14 Ok Reg
				  1083, eff 1-24-97 (emergency); Revoked at 14 Ok Reg 2346, eff
				  6-12-97
Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 55 - Motor Fuel › Subchapter 3 - Motor Fuel Tax [Revoked] › Section 710:55-3-7 - Seller's verified claim for deduction of excise tax on motor fuel sold to the United States Government [REVOKED]

Current through Vol. 41, No. 20, July 1, 2024
Revoked at 14 Ok Reg
				  1083, eff 1-24-97 (emergency); Revoked at 14 Ok Reg 2346, eff
				  6-12-97
Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 55 - Motor Fuel › Subchapter 3 - Motor Fuel Tax [Revoked] › Section 710:55-3-8 - Agricultural exemption permit holders must demand and receive invoice [REVOKED]

Current through Vol. 41, No. 20, July 1, 2024
Revoked at 14 Ok Reg
				  1083, eff 1-24-97 (emergency); Revoked at 14 Ok Reg 2346, eff
				  6-12-97
Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 55 - Motor Fuel › Subchapter 3 - Motor Fuel Tax [Revoked] › Section 710:55-3-9 - Tractors must be registered with the Tax Commission in the name of applicant or purchaser of motor fuel [REVOKED]

Current through Vol. 41, No. 20, July 1, 2024
Revoked at 14 Ok Reg
				  1083, eff 1-24-97 (emergency); Revoked at 14 Ok Reg 2346, eff
				  6-12-97
Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 55 - Motor Fuel › Subchapter 3 - Motor Fuel Tax [Revoked] › Section 710:55-3-10 - Distributor's bonds [REVOKED]

Current through Vol. 41, No. 20, July 1, 2024
Revoked at 14 Ok Reg
				  1083, eff 1-24-97 (emergency); Revoked at 14 Ok Reg 2346, eff
				  6-12-97
Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 55 - Motor Fuel › Subchapter 3 - Motor Fuel Tax [Revoked] › Section 710:55-3-11 - Motor fuel indemnity fund [REVOKED]

Current through Vol. 41, No. 20, July 1, 2024
Revoked at 14 Ok Reg
				  1083, eff 1-24-97 (emergency); Revoked at 14 Ok Reg 2346, eff
				  6-12-97
Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 55 - Motor Fuel › Subchapter 3 - Motor Fuel Tax [Revoked] › Section 710:55-3-12 - Filling station records [REVOKED]

Current through Vol. 41, No. 20, July 1, 2024
Revoked at 14 Ok Reg
				  1083, eff 1-24-97 (emergency); Revoked at 14 Ok Reg 2346, eff
				  6-12-97
Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 55 - Motor Fuel › Subchapter 3 - Motor Fuel Tax [Revoked] › Section 710:55-3-13 - Transporters for hire bonds [REVOKED]

Current through Vol. 41, No. 20, July 1, 2024
Revoked at 14 Ok Reg
				  1083, eff 1-24-97 (emergency); Revoked at 14 Ok Reg 2346, eff
				  6-12-97
Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 55 - Motor Fuel › Subchapter 4 - Motor Fuel Tax › Part 1 - LICENSES › Section 710:55-4-100 - General licensing requirement

Current through Vol. 41, No. 20, July 1, 2024
(a)
Who must obtain license.
The following persons must obtain a
				  license from the Oklahoma Tax Commission prior to engaging in business in this
				  state:
(1) Supplier
(2) Terminal operator (Except licensed
				  suppliers)
(3) Exporter (Except
				  licensed suppliers)
(4) Transporter
				  (Except licensed suppliers and bonded importers)
(5) Occasional importer
(6) Bonded importer
(7) Tank wagon operator-importer (Except
				  licensed importers who operate one or more bulk plants outside this
				  state.)
(8) Wholesaler or
				  retailer
Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 55 - Motor Fuel › Subchapter 4 - Motor Fuel Tax › Part 1 - LICENSES › Section 710:55-4-101 - Permissive supplier's license

Current through Vol. 41, No. 20, July 1, 2024
A person acting as a supplier outside the State of
					 Oklahoma, may apply for a permissive supplier's license.
Added at 14 Ok Reg
					 1083, eff 1-24-97 (emergency); Added at 14 Ok Reg 2346, eff
					 6-12-97