Arizona Laws 43-1126. Small business corporation; election as to taxable status; return; termination
A. A small business corporation which makes an election for a taxable year pursuant to subtitle A, chapter 1, subchapter S of the internal revenue code is not subject to the taxes imposed by this chapter for such year but only to the extent such corporation is not subject to federal income taxes.
Terms Used In Arizona Laws 43-1126
- Corporation: means a corporation, joint stock company, bank, insurance company, business trust or so-called "Massachusetts trust" investment company or building and loan association and any other association whether incorporated or unincorporated. See Arizona Laws 43-104
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Department: means the department of revenue, the director or the director's authorized delegate, as the context requires. See Arizona Laws 43-104
- Month: means a calendar month unless otherwise expressed. See Arizona Laws 1-215
- Nonresident: means every individual other than a resident. See Arizona Laws 43-104
- Taxable year: means :
(a) The calendar year or the fiscal year, ending during such calendar year, on the basis of which the taxable income is computed under this title. See Arizona Laws 43-104
B. An electing small business corporation shall file with the department an annual return, in a form prescribed by the department, on or before the fifteenth day of the third month following the close of the taxable year. The return shall show the name and address of each stockholder of the corporation and their respective pro rata share of income or loss. The allocation and apportionment of income of a small business corporation which has nonresident stockholders shall be made pursuant to article 4 of this chapter.
C. An election under this section is effective for the taxable year for which it is made and for all succeeding taxable years unless the corporation terminates its election pursuant to section 1372 of the internal revenue code.