Oklahoma Tax Commission Issues Updated FAQs on Accrued Income Tax Deduction for Electing Pass-Through Entities

The Oklahoma Tax Commission (OTC) March 1 issued updated frequently asked questions to address whether an electing pass-through entity can take the Oklahoma “Accrued Income Tax” deduction, for corporate income and individual income tax purposes. The OTC clarifies that an electing entity: 1) reporting as a unitary enterprise on Part 4 of Form 512–S or Form 514, can deduct the accrued income tax on Form 587-PTE; 2) reporting Oklahoma only on Parts 2 and 3, Column B, isn’t required to adjust the deduction for taxes based on or measured by income from federal amounts and isn’t allowed the deduction on ...