Okla. Admin. Code § 710:50-3-55

Current through Vol. 41, No. 24, September 3, 2024

Section 710:50-3-55 - Reporting the transfer or allocation of a tax credit

(a)General provisions. The transfer or allocation of any tax credit authorized pursuant to the provisions of Title 68 of the Oklahoma Statutes, except as otherwise provided in this Section, shall be reported to the Tax Commission.

(b)Exceptions. This Section shall not apply to the following tax credits:

(1) Sales Tax Relief Credit (68 O.S. § 5011 )

(2) Low Income Property Tax Relief Credit (68 O.S § 2907)

(3) Earned Income Tax Credit (68 O.S. § 2357.43)

(4) Child Care/Child Tax Credit (68 O.S. § 2357)

(5) Credit for Taxes Paid to another State (68 O.S. § 2357)

(c)Report. The transfer or allocation of any tax credit, on or after July 1, 2011, shall be reported to the Tax Commission (OTC Form 569) by the entity transferring or allocating the credit. Said form shall be filed on or before the twentieth day of the second month after the tax year in which an act occurs which allows the tax credit to eventually be claimed.

(d)Transferable credits. If the credit is transferable, the report shall state:

(1) Name of the taxpayer and taxpayer identification number to whom the credit is transferred;

(2) Tax type;

(3) Amount of credit;

(4) Statutory or other legal authority which forms the basis for the credit; and

(5) Any other information the Tax Commission may require.

(e)Allocable credits. If the credit is allocated, the report shall state:

(1) Identity of the shareholder, partner or member of the pass-through entity to whom the credit is allocated;

(2) Taxpayer identification number of the shareholder, partner or member of the pass-through entity to whom the credit is allocated;

(3) Whether the shareholder, partner or member of the pass-through entity to whom the credit is allocated is a pass-through entity;

(4) Tax type;

(5) Amount of credit;

(6) Statutory or other legal authority which forms the basis for the credit; and

(7) Any other information the Tax Commission may require.

(f)Failure to file report. If a taxpayer claims a credit on any state tax return that was not previously reported to the Tax Commission, pursuant to this Section, the Tax Commission shall disallow the credit and recompute the applicable tax liability including any penalty and interest; provided, upon the filing of the report, the credit shall be allowed.

Okla. Admin. Code § 710:50-3-55

Added at 29 Ok Reg 1468, eff 6-25-12

Amended by Oklahoma Register, Volume 36, Issue 22, August 1, 2019, eff. 8/11/2019