Free CT-47.1-I (Instructions) - New York

New York State Department of Taxation and Finance

Instructions for Form CT-47.1
Election or Termination of Election to Deem Income for Purposes of the Farmers' School Tax Credit General information
Under Tax Law section 606(n)(9), shareholders of an eligible corporation may elect to allow those shareholders that are not New York C corporations to take into account their pro rata share of the eligible corporations income and principal payments on farm indebtedness for purposes of determining eligibility for the farmers' school tax credit. An eligible corporation is a corporation subject to tax under Tax Law Article 9-A and must be a C corporation for both federal and New York State franchise tax purposes. If a corporation becomes ineligible, the election is terminated. For a shareholder to participate in the election or termination of the election, the shares held must enable a shareholder to vote for the board of directors of the corporation. For the election or termination of election to be valid, shareholders holding more than one-half, by vote and value, of the stock of the corporation on the last day of the corporation's tax year for which the election is to be in effect must sign Form CT-47.1. For this purpose, where all of the stock of the corporation has a par value, each share of stock will be valued at par. Where a corporation has no par value, and there is only one class of stock, each share of stock shall have the same value.

CT-47.1-I
(7/08)

corporation. This applies for the corporation's tax year in which the corporation became ineligible, and for all subsequent tax years, until a new valid election is made.

Further elections
When an election is terminated, no further election can be made before the fifth tax year of the corporation following the tax year during which their termination occurred, unless the Commissioner of Taxation and Finance consents to the election.

Waiver of secrecy
For any corporation tax year for which the election is in effect, the commissioner has the authority to reveal to corporation's shareholders any information with respect to the corporation's income or farm indebtedness principal payments that is the basis for denial in whole or in part of the credit claimed by the shareholders.

Where to file
Mail Form CT-47.1 to: NYS TAX DEPARTMENT CORPORATION TAX REGISTRATION W A HARRIMAN CAMPUS ALBANY NY 12227 Private delivery services If you choose, you may use a private delivery service, instead of the U.S. Postal Service, to mail in your return and tax payment. However, if, at a later date, you need to establish the date you filed your return or paid your tax, you cannot use the date recorded by a private delivery service unless you used a delivery service that has been designated by the U.S. Secretary of the Treasury or the Commissioner of Taxation and Finance. (Currently designated delivery services are listed in Publication 55, Designated Private Delivery Services. See Need help? for information on obtaining forms and publications.) If you have used a designated private delivery service and need to establish the date you filed your return, contact that private delivery service for instructions on how to obtain written proof of the date your return was given to the delivery service for delivery.

Election by shareholders
If the corporation has filed Form CT-47.1 to make the election and New York State has not sent notification that the election is invalid, all shareholders, other than New York C corporations, must take into account their pro rata shares of the applicable items of the corporation as required in Tax Law section 606(n)(9). This applies for the tax year of the corporation ending with or within the tax year of the shareholder, and for all subsequent tax years, until the election is terminated.

When to file an election
The corporation must file Form CT-47.1 with the Tax Department no later than the due date, determined without regard to extensions, of the corporation's tax return for the tax year for which the election is to be effective. The election is then effective for the corporation's tax year for which the election is made and for all succeeding tax years until the election is terminated. If Form CT-47.1 is filed after the due date, then the election will not be in effect for the tax year of the return and you will be notified by the Tax Department that the election is not valid. The date of the U.S. postmark will be considered the date of delivery. If sent by registered or certified mail, the date of registration or certification will be considered the date of delivery. If you use a delivery service other than the U.S. Postal Service, see Private delivery services.

Specific instructions
Legal name of corporation -- Enter the legal name of the corporation exactly as it appears in the records of the New York State Department of State. DBA or trade name -- Enter the DBA or trade name that appears on the Certificate of Assumed Name filed with the New York State Department of State, if different from the legal name. Entering dates -- Unless you are specifically directed to use a different format, enter dates in the mm-dd-yy format (using dashes and not slashes).

Termination of the election by shareholders
If the corporation has filed Form CT-47.1 to terminate the election and New York State has not sent notification that the termination is invalid, the shareholders must not take into account their pro rata shares of the applicable items of the corporation. This applies for the corporation's tax year that begins immediately following the last day of the corporation's tax year for which an election was in effect, and for all subsequent tax years, until a new election is made.

Line instructions
Line 2 -- If making an election, enter the due date, without regard to extension, for the corporation's return for the tax year for which this election is to be effective. This date will generally be two and one-half months after the ending date of the corporation's tax year that is required to be entered on line 3. No entry is required if terminating an election. Line 3 -- Enter the ending date for the corporation's tax year for which the election is to be effective. The tax year should be the same as that for which the return's due date was entered on line 2. No entry is required if terminating an election. Line 4 -- If an election is terminated due to the corporation ceasing to be an eligible corporation, enter the date the corporation ceased to be an eligible corporation.

Termination of election because of cessation of corporation eligibility
If a corporation is no longer an eligible corporation as defined in General information, the election will terminate on the first day of the corporation's tax year in which the corporation ceases to be an eligible corporation. In this instance, the corporation should file Form CT-47.1, with the appropriate box marked, to notify the Tax Department that it is no longer an eligible corporation. However, regardless of whether Form CT-47.1 is filed with the Tax Department, the shareholders of the corporation must not take into account their pro rata shares of the applicable items of the

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Shareholder's consent and individual affirmation
Continuation sheet or separate consent statement -- If you need to list more shareholders than fit on the form, use a continuation sheet or a separate consent statement and attach it to Form CT-47.1. On any attached sheets, include the name, address, and employer identification number (EIN) of the corporation and the shareholder information requested in columns A, B, and C. Column A -- Enter the name and address of only those shareholders that are agreeing to the election or the termination of an election. Only those shareholders holding shares of stock that enable them to vote for the board of directors of the corporation are eligible to agree to an election, or to a termination of an election. Column B -- Enter the social security number of the shareholder represented in column A if that shareholder is an individual. If that shareholder is a corporation, partnership, estate, a qualified trust, or an exempt organization, enter its EIN. Column C -- Each shareholder agreeing to the election must signify his or her agreement by signing in column C or by signing a separate consent described above. If a husband and wife have a community interest in the stock or the income from it, both must consent. Likewise, each tenant in common, joint tenant, or tenant by the entirety must also consent. A minor's consent is made by the minor or the legal guardian. If no legal guardian has been appointed, the natural guardian makes the consent (even if a custodian holds the minor's stock under a law patterned after the Uniform Gifts to Minors Act). A corporation's, partnership's, or an Article 13 taxpayer's consent is made by an elected officer or other authorized person.

Information concerning quarterly wages paid to employees is provided to certain state agencies for purposes of fraud prevention, support enforcement, evaluation of the effectiveness of certain employment and training programs and other purposes authorized by law. Failure to provide the required information may subject you to civil or criminal penalties, or both, under the Tax Law. This information is maintained by the Director of Records Management and Data Entry, NYS Tax Department, W A Harriman Campus, Albany NY 12227; telephone 1 800 225-5829. From areas outside the United States and outside Canada, call (518) 485-6800.

Need help?
Internet access: www.nystax.gov (for information, forms, and publications) Fax-on-demand forms: Forms are available 24 hours a day, 7 days a week. 1 800 748-3676 Telephone assistance is available from 8:00 A.M. to 5:00 P.M. (eastern time), Monday through Friday. To order forms and publications: 1 800 462-8100 Corporation Tax Information Center: 1 888 698-2908 From areas outside the U.S. and outside Canada: (518) 485-6800 Text Telephone (TTY) Hotline (for persons with hearing and speech disabilities using a TTY): If you have access to a TTY, contact us at 1 800 634-2110. If you do not own a TTY, check with independent living centers or community action programs to find out where machines are available for public use. Persons with disabilities: In compliance with the Americans with Disabilities Act, we will ensure that our lobbies, offices, meeting rooms, and other facilities are accessible to persons with disabilities. If you have questions about special accommodations for persons with disabilities, please call 1 800 972-1233.

Signature of authorized person
An authorized person, for purposes of this form, is a person knowledgeable about the identity of the shareholders and the number and type of shares held by each shareholder.

Privacy notification
The Commissioner of Taxation and Finance may collect and maintain personal information pursuant to the New York State Tax Law, including but not limited to, sections 5-a, 171, 171-a, 287, 308, 429, 475, 505, 697, 1096, 1142, and 1415 of that Law; and may require disclosure of social security numbers pursuant to 42 USC 405(c)(2)(C)(i). This information will be used to determine and administer tax liabilities and, when authorized by law, for certain tax offset and exchange of tax information programs as well as for any other lawful purpose.