586: 2024 Form 586 Oklahoma Pass-through Entity Election Form (2024)
Oklahoma · Oklahoma Tax Commission · Used for tax years 2024
Oklahoma Form 586 notifies the Oklahoma Tax Commission that a pass-through entity is making or revoking an election to become an electing PTE. It identifies the entity and the tax year when the election or revocation takes effect.
Who files this form
Form 586 is for an entity choosing to make or revoke an Oklahoma pass-through entity (PTE) election. Any entity required to file an Oklahoma partnership or S corporation income tax return may elect to become an electing PTE.
Each PTE must make its own election. One entity’s election does not apply to another entity.
Once the entity receives an acknowledgment letter from the Oklahoma Tax Commission (OTC), it does not need to file another Form 586 unless it is revoking the election.
When it's due
For tax years beginning on or after January 1, 2024, the form states that the election must be filed:
- Anytime during the preceding tax year, or
- Two months and fifteen days after the beginning of the tax year.
Beginning with tax year 2024, an eligible entity may also elect by filing its Oklahoma income tax return no later than the applicable return’s due date, including extensions. The form refers to the instructions for Form 512-S or Form 514.
Revocation timing: A revocation made within two months and fifteen days of the beginning of the PTE’s taxable year takes effect on the first day of that year. A revocation made later in that taxable year takes effect on the first day of the following taxable year.
What you'll need
To complete Form 586, have the following information ready:
- Entity FEIN, entity type, name, address and phone number.
- The tax year and beginning and ending dates when the election or revocation will take effect.
- For an election, whether the PTE filed an Oklahoma income tax return for the previous tax year.
- The authorized signer’s name, title, signature and signing date.
After the election, the PTE must attach a copy of the OTC acknowledgment letter to its Oklahoma income tax return. It must also give a copy to its shareholders, partners or members and tell them to attach it to their Oklahoma income tax returns.
How to file
- Enter the entity’s identifying and contact information.
- Complete Part 1 to make an election or Part 2 to revoke an election. Enter the effective tax year and its beginning and ending dates.
- Have an authorized person sign and date the form. For a partnership return filer, this must be a partner or member authorized to sign and file the income tax return. For an S corporation return filer, this must be a corporate officer or member authorized to sign and file the income tax return.
- Mail the form to:
Oklahoma Tax Commission
Oklahoma City, OK 73194
Beginning with tax year 2024, eligible entities may also elect by filing their income tax return by its due date, including extensions. See the instructions for Form 512-S or Form 514.
Common mistakes
- Filing Form 586 again unnecessarily: After receiving the OTC acknowledgment letter, the entity does not need to file another Form 586 unless it is revoking the election.
- Leaving out the acknowledgment letter: The PTE must attach a copy to its Oklahoma income tax return and provide copies to its shareholders, partners or members for attachment to their Oklahoma income tax returns. Form 586 does not need to be submitted with the letter.
- Not paying the required PTE tax when due: The OTC may revoke the election effective for the first year the tax is not paid.
Questions people ask
How long does the PTE election last?
The election is binding until the PTE or the OTC revokes it.
Does one PTE’s election cover another PTE?
No. Each PTE must make its own election.
How does this election affect a composite return or nonresident shareholder tax payments?
For the same tax year, the PTE election takes priority over and revokes an election to file a composite Oklahoma partnership return or an S corporation’s requirement to report and pay tax on behalf of a nonresident shareholder.
Do I attach Form 586 along with the OTC acknowledgment letter?
No. The form states that Form 586 is not required to be submitted with the OTC acknowledgment letter. The acknowledgment letter must be attached to the electing PTE’s Oklahoma income tax return.