Virginia Sub Chapter S classification

[Naveen Mohan from New York]

Does VA requires any state filing of a form comparable to Federal Form 2553 or does it accept Federal Sub chapter S classification for State Tax purpose. The reason I am asking this question is that I am based in New York state and New York State does not accept federal 2553 for state purpose you have to file a separate New York State form CT-6 for this purpose.

I was wondering if Virginia also have similar rules.

Thank for your help.

 

Naveen Mohan

 

[Gail in Virginia]

From the Virginia Department of Taxation website:

• Corporations that have elected S status for federal purposes are automatically treated as S corporations for Virginia purposes, and must file their returns on Form 502 by the 15th day of the fourth month following the close of their taxable year. All other corporations file on Form 500. The Virginia Form 500 must be filed by the 15th day of the fourth month following the close of the taxable year, except for nonprofit organizations, which file by the 15th day of the sixth month following the close of their taxable year.

So unlike New York, once you have elected S status for federal purposes, you are automatically treated as a pass-through entity for state purposes as well.