Electing S Corporation Status in New York
In our Comprehensive Guide to State S Election Requirements, we noted that there are only two states—New Jersey and New York—that definitely still require something specifically delineated as a separate state S corporation “election” to be filed for the federal S corporation election to be recognized in those states.
Under New York law, the shareholders of a federal S corporation may elect to be treated as a New York S corporation, if the corporation meets certain criteria. In particular, the corporation must be a federal S corporation and must be taxable under Article 9-A of the New York State Tax Law, and the all of the corporation’s shareholders must consent to the New York S election.
A New York S election is made by filing Form CT-6 (Election by a Federal S Corporation to be Treated as a New York S Corporation) with the New York State Department of Taxation and Finance. To be effective for the tax year, Form CT-6 must be filed on or before the 15th day of the third month of the tax year to which the election will apply. An election made after the 15th day of the third month but before the end of the tax year is effective for the next year. A New York S election may be retroactively validated.
To prove that the corporation is a federal S corporation, a copy of the federal approval letter should be attached to Form CT-6. But because the New York S election deadline is the same as the federal S election deadline, federal approval often may not be received before the New York S election is filed. In that event, the corporation may file its New York S election indicating that the federal election is pending, and then forward a copy of the federal approval to the Tax Department once it is received. Once a state election is made and approved by the Tax Department, the corporation remains a New York S corporation as long as it is a federal S corporation and the election is not terminated or revoked.
 Instructions for Form CT-6, at 1; N.Y. State Dep’t of Taxation & Fin., S corporations – tax years beginning on or after January 1, 2015.
 Instructions for Form CT-6, at 1. An election made no later than the 15th day of the third month after the beginning of a tax year that is less than 2½ months long will be considered timely filed for that tax year. Id.