Common Questions regarding Mississippi Pass-through Entity Election with an 1120S return using CCH® ProSystem fx® Tax and CCH Axcess™ Tax.

  • Article Type:
  • QA
  • Last Modified:
  • 04/24/2023

Question

What are some common questions and answers regarding Mississippi passthrough entity tax with an S Corporation return?

Environment

  • CCH® ProSystem fx® Tax
  • CCH Axcess™ Tax
  • S Corporation – 1120
  • Mississippi - MS
  • Worksheet View - WSV
  • Interview Forms - IVF

Answer

QuestionAnswer
 Form Name
  • 84-381
  • 84-105
-State Links
Election for PTE
-Is an Election Required?
  • Yes. The state of Mississippi does not automatically elect any entity to be taxed as an electing pass-through entity.
-Made when?
  • On or before the 15th day of the 3rd month following the close of the taxable year for which the entity elects to be taxed as an electing PTE or revoked as an electing PTE.
-Good for?
  • The election shall be binding for the taxable year and all subsequent taxable years unless the election is revoked by the electing pass-through entity.
-How do we make this election?
  • Filing Form 84-381
-Separate Form needed?
  • Yes. Form 84-381
-Option  to Opt-Out?
  • No, all must be included. The option to revoke the pass-through entity election is located on the 84-381 and is made by marking the "Removing PTE" box. Input on Mississippi > Composite Return worksheet > Section PTE Election Form > Line 13 - Electing / revoking PTE.
    • Interview Mississippi > MS13, box 142.
Generation of State PTE Return
 How do we generate the form above?
  • To generate the 84-381, use Mississippi > Composite Return worksheet > Section PTE Election Form > Lines 1-13
    • Interview Mississippi > MS13 boxes 130-142.
  • For the 84-105, to elect the pass-through entity at the partner level, use Common State/City > State PTE Generation > State PTE Return Generation > Mississippi - Generate State PTE return.
    • Interview form PTE-ST1 box 138.
  • For the 84-105, to elect the pass-through entity at the pass-through level, use the Mississippi > Schedule K-1 From Passthrough worksheet
    • Use Lookup value in line 1 to link to the Federally input Partnership Passthrough entity.
      • Interview Mississippi > MS15 and MS16.
    • 84-105, line 7 - credit amount of tax paid by the lower-tier electing PTE can be input on line 42 of this worksheet.
      • Interview Mississippi > MS16 box 80.
 Is this a separate filing from the main form, part of the main form, or filed on it's own?
  • 84-381 must be paper filed.
Estimates
 Are there estimates for this form?
  • Form 84-300ES Estimate Vouchers. "Every taxpayer filing a composite return or an electing PTE return with an annual income tax liability in excess of $200 must make estimated tax payments."
  • Control estimate preparation with Federal Payments/Penalties/Estimates > Estimates and Application of Overpayment worksheet > section 3 - State Estimate > select row with State Code MS > Detail Lines 1-4, 13-16, 22, 25, and 27.
    • Interview Form Common State > St Pay/Est > STEST-1, boxes 30-43, 49, 52, 54-56, 58, 70, and 71.
Interest/Penalties
 Do interest/penalties apply?
  • This is calculated as normal using the same method as the main form 84-105.
  • Please review Form 80-305 for calculation if 84-105, line 15 is populated.
Additional PTE Information
  • Common State > State PTE Generation worksheet >Grid 23 
    • (Interview PTE-ST1, boxes 300-364)
 Does this section apply to this state?
  • No.
Additional Input Available
-Does new input options under State and City Tax Refund flow to the state?
  • No.
-Does new input options under Taxes and Licenses flow to the state?
  • No.
-Does new input options under Rent/Royalty flow to the state?
  • No.
-Does the new input options under Farm flow to the state?
  • No.

Note
  • This election will check the 84-105 box for "Electing pass-through entity" and calculate the partner's tax paid by electing pass-through entity on Mississippi form 84-131, column D. The partner's amount of 84-131, column D carries to the partner's 84-132, Part V.
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