586: 2025 Form 586 Oklahoma Pass-through Entity Election Form (2025)
Oklahoma · Oklahoma Tax Commission · Used for tax years 2025
Oklahoma Form 586 is used by a pass-through entity to elect to pay Oklahoma income tax at the entity level or to revoke a previous election. It reports the entity’s information and the tax year when the election or revocation takes effect.
Who files this form
Form 586 is for qualifying pass-through entities (PTEs) choosing to pay Oklahoma income tax at the entity level or revoking a previous election. The election is available to entities required to file:
- An Oklahoma partnership income tax return.
- An Oklahoma Subchapter S corporation income tax return.
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 a tax year 2025 election, the form gives these filing windows rather than specific calendar dates:
- Stand-alone Form 586: File during the preceding tax year or within two months and 15 days after the beginning of the current tax year.
- Election on the income tax return: Make the election no later than the applicable return’s due date, including extensions. Include Form 586 with the return.
For a revocation, the effective date is the first day of the PTE’s taxable year if the revocation is made within two months and 15 days of that year’s beginning. If made after that period, the revocation takes effect on the first day of the following taxable year.
What you'll need
Have these details ready to complete Form 586:
- The entity’s FEIN, entity type, name, address and phone number.
- The tax year when the election or revocation will begin, including its beginning and ending dates.
- 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.
If making the election on Form 512-S or Form 514, include Form 586 with that return.
Owners also have attachment requirements for their Oklahoma income tax returns:
- First year, stand-alone election: Include a copy of the OTC acknowledgment letter.
- First year, election on the PTE’s return: Include a copy of the PTE’s Form 586 signed by an authorized person.
- Subsequent years: Include a copy of the OTC acknowledgment letter.
How to file
Complete the entity information, then use Part 1 to make an election or Part 2 to revoke one. Enter the effective tax year and its beginning and ending dates.
The form must be signed by:
- A partnership: A partner or member authorized to sign and file the partnership income tax return.
- An S corporation: A corporate officer or member authorized to sign and file the S corporation income tax return.
The mailing address printed on Form 586 is:
Oklahoma Tax Commission
Oklahoma City, OK 73194
A qualifying PTE may also make the election directly on its Oklahoma income tax return, Form 512-S or Form 514, and include Form 586 with that return. A revocation cannot be made as part of filing either return.
Common mistakes
- Leaving out Form 586 when electing on the tax return. It must be included with Form 512-S or Form 514 when making the election this way.
- Trying to revoke through the income tax return. Revocations require Part 2 of Form 586 and cannot be made as part of filing Form 512-S or Form 514.
- Using an unauthorized signer. The signer must meet the form’s requirements for partnerships or S corporations.
- Missing owner attachments. Shareholders, partners and members must include the required acknowledgment letter or signed Form 586 copy with their Oklahoma income tax returns.
- Filing a new election form unnecessarily. After receiving the OTC acknowledgment letter, the entity does not need another Form 586 unless revoking the election.
Questions people ask
What does the PTE election do?
It allows a qualifying entity to pay Oklahoma income tax at the entity level rather than having the income passed through to be taxed at the individual owner level.
How long does the election last?
The election remains binding until revoked.
Will the OTC confirm the election?
Yes. The OTC will send an acknowledgment letter to the electing PTE. The PTE must provide its shareholders, partners or members with a copy.
How does the election affect owners’ Oklahoma taxable income?
Oklahoma income or losses included in computing the PTE’s tax will not be used to calculate the Oklahoma taxable income of its partners, members or shareholders.