Form5E: Form5E (2025)
Wisconsin · Wisconsin DOR · Used for tax years 2025
Wisconsin Form 5E allows a federal S corporation to elect not to be treated as a tax-option corporation for Wisconsin franchise or income tax purposes. It records corporation information, the effective taxable year, and consenting shareholders’ ownership details and signatures.
Who files this form
A corporation that is an S corporation for federal income tax purposes uses Form 5E to elect not to be treated as a tax-option corporation for Wisconsin tax purposes.
The election requires consent from shareholders who own more than 50% of the corporation’s shares on the day the election is made.
If the S corporation has a qualified Subchapter S subsidiary (QSub) for federal purposes, neither the corporation nor the QSub may make this election.
What you'll need
Have the following information ready:
- The corporation’s name, address, federal employer identification number, state and year of incorporation, and Wisconsin DFI number.
- The number of shareholders and the number of shares issued and outstanding.
- The beginning date of the taxable year when the election will take effect.
- Each signing shareholder’s name, address, federal identifying number, number of shares owned, and stock acquisition date. If shares were acquired on multiple dates, use the most recent date.
Attach a schedule with the required shareholder information if you need more space. The form requires shareholder signatures and an authorized corporate officer’s signature.
How to file
- Complete the corporation and shareholder information on Form 5E.
- Obtain signatures from shareholders who together own more than 50% of the shares on the election date. If the stock or its income is community property, both husband and wife must sign the consent. Wisconsin marital property is a form of community property.
- Have an authorized corporate officer sign the form and enter their title and the date.
- Mail the form to:
Wisconsin Department of Revenue
PO Box 8908
Madison WI 53708-8908
The election is completed by filing a Wisconsin franchise or income tax return consistent with the election. Use Wisconsin Form 4 or Form 6, as appropriate.
Common mistakes
- Electing out when the corporation has a QSub. The form notes that neither an S corporation with a federal QSub nor the QSub may elect out of Wisconsin tax-option treatment.
- Overlooking Wisconsin income adjustments. The form cautions that, because the corporation will file federal Form 1120-S, special adjustments may be needed to determine Wisconsin net income correctly.
Questions people ask
How long does the election last?
It applies to the first taxable year selected and at least the next four taxable years, including for any successor corporation. After the five-year period, you may revoke it by filing Wisconsin Form 5R.
Can the corporation withdraw the election before filing its return?
Yes. Send the Department of Revenue a letter signed by shareholders holding more than 50% of the corporation’s stock. The letter must be sent before the return is filed and on or before the return’s due date, including extensions.
What if the corporation already filed its return?
If the return was filed before its due date or extended due date, the corporation may withdraw the election by filing an amended Wisconsin return, Form 5S, with a letter requesting withdrawal by that due date or extended due date. After that deadline, the election cannot be withdrawn.
What happens if the corporation acquires a QSub?
The election automatically ends for the taxable year in which the corporation acquires a federal QSub. Form 5R is not required in this case. Use Wisconsin Form 5S to report the income of the corporation and its QSub.