AR HB1563

Corporations that elect Subchapter S treatment for federal income tax purposes are automatically treated as Subchapter S corporations for Arkansas income tax purposes for the same tax year.

Corporations may elect Subchapter S treatment for Arkansas income tax purposes only if they have elected such treatment for federal income tax purposes for the same tax year.

Corporations electing federal Subchapter S treatment cannot simultaneously elect to be treated as Subchapter C corporations for Arkansas income tax purposes.

Corporations filing Arkansas Subchapter S income tax returns must attach a complete copy of their federal Subchapter S income tax return filed with the Internal Revenue Service.

Repeals Arkansas Code § 26-51-413(b) regarding corporate liquidations and Section 338 elections, effective for tax years beginning January 1, 2018.