740-PTET-ELECT: Kentucky Pass-Through Entity Tax (Election to Pay Income Tax at the Entity Level) (2025)

Who files this form

Form 740-PTET-ELECT is for a pass-through entity choosing to pay Kentucky income tax at the entity level for tax year 2025. The form states that it is to be completed by a pass-through entity only.

When it's due

For tax year 2025, the election may be made during the taxable year or after it ends. If made after the year ends, the election must be made by:

• The 15th day of the fourth month after the close of the taxable year, or
• The extended due date if an extension is filed.

The pass-through entity tax is due on the same date as the entity's annual return for the taxable year, without regard to extensions.

What you'll need

Have the following information ready to complete the form:

• Entity name, mailing address, and telephone number.
• Federal identification number.
• LLET account number, if available. It must have 9 digits. If it has 6 digits, add leading zeros.
• Beginning and ending dates if filing for a tax year other than calendar year 2025.
• The signing member's printed name, title, signature, and date.
• If using a paid preparer, the preparer's signature, date, printed name or firm name, ID number, and email and/or telephone number.

The form text does not list specific supporting documents to attach.

How to file

1. Enter the entity's identifying information and applicable tax-year dates. Check the change-of-name box if applicable.
2. Check the “Election to Pay Income Tax at the Entity Level” box to make the election.
3. Complete the member signature, date, printed name, and title fields. Complete the paid-preparer fields if using a paid preparer, including the Yes/No choice about whether the Department of Revenue may discuss the return with that preparer.
4. Mail the form to:

Kentucky Department of Revenue

Frankfort, KY 40619-0006

The supplied form text gives mailing instructions but no e-filing instructions.

Common mistakes

• Using a 6-digit LLET account number without leading zeros. The form requires 9 digits when an LLET account number is provided.
• Assuming the election can be reversed. Once made for a taxable year, the election is irrevocable and binds all entity owners.
• Treating an extension as extra time to pay the tax. The tax is due on the entity's annual return due date, without regard to extensions.

Questions people ask

What does this election do?

It allows the pass-through entity to elect to pay income tax at the entity level. The tax is based on ordinary income and separately stated items of income calculated under KRS 141.206.

Can the entity change its mind after making the election?

No. For that taxable year, the election is irrevocable and binding on all entity owners.

Can the election be made after the tax year ends?

Yes. It must be made by the 15th day of the fourth month after the taxable year closes, or by the extended due date if an extension is filed.

Can the Department of Revenue discuss the return with the preparer?

The form has Yes and No boxes for the entity to indicate whether the Department of Revenue may discuss the return with the listed preparer.

Official sources

• https://revenue.ky.gov/Forms/Form%20740-PTET-ELECT.pdf