S-Corporation & Individual Shareholder Reporting Requirements

S-Corporation Reporting Requirements

• The Corporate Tax Credit is available to an S-Corporation as defined in Section 1361 of the Internal Revenue Code.
• LLCs taxed as S-Corporations for federal and state purposes are eligible to donate to APSTO for a Corporate Tax Credit.
• The S-Corporation may make an irrevocable election to pass the credit through to its individual shareholders instead of claiming the credit against income taxed at the corporate level on the 120S.
• The S-Corporation does not need to have a liability to pass the credit through to its shareholders. The shareholders will apply their share of the tax credit against their individual income tax liability.
• Any pro rata shares that would be distributed to non-eligible partners (individual partners in a partnership) or estates or trusts (shareholders in an S-Corporation) are lost.
• The donation to APSTO must be made by the S-Corporation to be eligible for the tax credit, not the individual taxpayer.
• For Low-Income Corporate Tax Credit donations - Form 335 and Form 335-S will be completed by the S-Corporations and submitted with their 120S. A copy of Form 335-S is also to be forwarded to the shareholders.
• For Disabled/Displaced Corporate Tax Credit donations – Form 341 and Form 341-S will be completed by the S-Corporation and submitted with their 120S. A copy of Form 341-S is also to be forwarded to the shareholders.

Individual Shareholder Reporting Requirements

• There is no limit on the Corporate Tax Credit claimed by the individual taxpayer. If the taxpayer’s share of the S-corporation credit is $3,000 then their credit will be $3,000.
• Form 335-S or 341-S will be completed by the S-Corporation and forwarded to the shareholder. The individual taxpayer will claim their share of the credit on Form 341-I.
• The Corporate Tax Credit does not impact the individual taxpayer’s ability to claim the Original or PLUS tax credit.
• The individual taxpayer may carry forward any unused credit for 5 years.

Questions? Call 480-256-1001 or email info@APSTO.org