Article

Deadline Looming for 2022 State Pass-Through Entity Tax Elections

February 9, 2022

By: Cathy Stanton and Tony Konkol

Pass-through entities that are considering the optional Pass-Through Entity (“PTE”) tax elections for the 2022 calendar year may need to make their elections soon. The following are states that require early elections:

NEW YORK STATE: The New York PTE tax election is made annually and is irrevocable. The 2022 tax year election must be made by March 15th, 2022. For fiscal year taxpayers, the March 15, 2022, election deadline applies to PTEs with a fiscal year ending in 2022. The New York PTE tax election must be made online through the entity’s Business Online Services account by an “Authorized Person” designated by the PTE, which does not include the tax preparer.

MICHIGAN and OKLAHOMA: Action must be taken by March 15, 2022, to make an election for the 2022 tax year.

CALIFORNIA: A payment of $1,000 or 50% of the prior year PTE Tax (whichever is greater) must be made by June 15, 2022, otherwise the PTE will not be permitted to take the 2022 tax year election.

For more information or guidance, contact your Cherry Bekaert advisor or a member of the Firm’s State and Local Tax team.