Alert: Oklahoma Franchise Tax Suspension Ends

Gerald Capps, JD

Alert: Oklahoma Franchise Tax Suspension Ends

By Jerry Capps
AGH Specialized Tax Solutions
May 23, 2014

As you may recall, Oklahoma previously suspended its franchise tax for periods from July 1, 2010 through July 1, 2013. The suspension is over and the due date for filing Oklahoma franchise tax is July 1, 2014 for the June 30, 2015 period. Returns filed after Sept. 2, 2014 will be considered delinquent.

This includes S corporations as well as regular corporations. Limited liability companies are statutorily exempt from franchise tax. Corporations statutorily converted to LLC status by June 30, 2014 will avoid the filing and tax altogether.

Organizations which have property or payroll, pay sales tax, have operations, or conduct other transactions in Oklahoma could be subject to Oklahoma franchise tax. If any of these apply to your organization, contact your AGH tax professional as soon as possible to determine whether you must file a return for Oklahoma franchise tax by July 1.

If your organization has operations in multiple states, you may incur tax liabilities that can be managed and mitigated through careful state and local tax planning. See our tax alert of March 11 ("Manage multistate business operations to minimize potential tax liability") online for more information.

For more information about how the reinstatement of the Oklahoma franchise tax may affect your company, please contact your AGH tax professional, or AGH senior vice president of state and local tax Jerry Capps at (316) 291-4130 or jerry.capps@aghlc.com.

Any discussion of tax matters contained herein is not intended or written to be tax advice, and cannot be relied upon as such, nor can it be used for the purpose of: (i) avoiding tax penalties that may be imposed by the IRS or states, or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein. If you seek definitive tax advice on a matter, please request a written tax memorandum from your AGH tax advisor.