How do I elect North Carolina CD-401S, pg 1, to be a taxed S Corporation with an 1120S return using CCH® ProSystem fx® Tax and CCH Axcess™ Tax?

  • Article Type:
  • How To
  • Last Modified:
  • 02/05/2024

Objectives

How do I check the the "yes' box on NC CD-401S, pg 1, Taxed S Corporation?


 

Environment

  • CCH® ProSystem fx® Tax
  • CCH Axcess™ Tax
  • North Carolina - NC
  • S Corporation – 1120S
  • Worksheet View - WSV
  • Interview Forms – IVF

Procedure

Prepare the Taxed CD-401S

Worksheet View

  • Common State > State PTE Generation State/City Generation > select checkbox for North Carolina under the Generate tax return column (Tax Year 2023 forward), or
  • North Carolina > Taxes worksheet > line 4 - S corporation is making the election to be a taxed S corporation.
    • Tax Year 2022 only.

Interview Forms

  • Federal Interview Form  PTE-ST1, box 186 (Tax Year 2023 forward).
  • North Carolina Interview Form NC3, box 32.
    • Tax Year 2022 only.

Payments against taxes due

  • See cross-reference (keyboard F1) behind CD-401S, page 2, lines 20a, 20b, 20c, 20d, 20e.

Penalties and Interest

  • Payments/Penalties/Estimates > Penalties worksheet > State / City Late Interest and Penalties > Late interest, Late Payment, Late Filing, Date Filed if After Due Date.
  • Interview Form Common State > Penalties > PEN-1, boxes 40-43.

Next Year Estimates

NC-429 PTE / CD-429-PTE for Taxed S Corporations is prepared if the expected North Carolina income tax liability is at least five hundred dollars ($500).

  • Payments/Penalties/Estimates > Estimates and Application of Overpayment worksheet > State Estimates and Application of Overpayment > state code NC, estimate code Mandatory Estimate
  • Interview Form Common State > StPay/EstSTEST-1, state code NC, box 40, option 2.

Additional Information

CD-401S
Page 1:
  • Taxed S Corporation Is the S Corporation making the election to be a Taxed S Corporation for tax year 20XX?
Page 2, Schedule B, lines:
  • 16 - Amount of line 15 Attributable to Nonresidents Filing Composite Return or to Nonresidents When a Taxed S Corporation Election is Made.
  • 17 Amount of line 9 Attributable to Residents When a Taxed S Corporation Election is Made.
  • 19 - N.C. Income Tax.
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