What is Form 569?
This is a standalone form used to report an income tax credit authorized under Title 68 of the Oklahoma Statutes that has been transferred or allocated on or after July 1, 2011.
Who should file Form 569?
Any entity that transfers or allocates an Oklahoma income tax credit on or after July 1, 2011 is required to file this form.
When does Form 569 need to be filed?
Form 569 must be filed on or before the 20th day of the second month after the tax year in which the transfer or allocation of a credit occurs.
What happens if I don’t file Form 569?
The tax credit may be disallowed for each entity that claims it on its income tax return.
Can I amend Form 569?
Yes, you can amend Form 569 on both the paper and electronic versions. Simply check the box that says “Amended Report” at the top.
Can I file Form 569 attached to any other tax return?
No, Form 569 is a standalone form.
What documentation is required to be filed with this form to prove the credit is valid?
No additional documentation is required.
Should I attach a copy of Form 569 to my individual income tax or corporate income tax return as supporting documentation for claiming the credit?
What credits are allocable or transferable?
You may view a list of the allocable and transferable credits on page 4 or 5 of Form 569 on the Oklahoma Tax Commission website
I don’t see my credit on page 4 or 5 of the form; does that mean I don’t have to file a Form 569?
- Pass-through entity:
The apportionment of tax credits by means of a pass through entity’s structure.
The conveyance from one person to another.
A "pass-through entity", also known as a "flow-through entity" is an organization which regularly distributes a portion of its income to its investors. The way it is set up, usually only the investors are taxed on this income, not the entity itself. An S Corporation, a limited partnership and a limited liability company are examples of a pass-through entity.
An individual, group, or organization that owns one or more shares in a company and in whose name the share certificate is issued
A partnership is a relationship between two or more persons who join together to carry on a trade or business. There are two types of business partnership structures:
A General Partnership is an agreement with one or more individuals to jointly own or share profits of a business. There are no limits to the number or type of partners (types of partners include individuals, other partnerships, or corporations).
A Limited Partnership consists of one or more general partners (those who are generally liable for the business) and one or more limited partners. A limited partner is one who has limited liability in the business. This structure must file organizing documents with the Oklahoma Secretary of State.
A shareholder of an S-Corporation
A partner in a general partnership
A partner in a limited partnership
A partner in a limited liability partnership
A member of a limited liability company
Do 538-S and 538-H credits qualify for transfer or allocation?
No, the Credit for Refund of Property Taxes (538-H) and Sales Tax Refund (538-S) may not be transferred or allocated.
If full credit received is not used, will the taxpayer be able to roll it over to a future year? If so, is there a point at which it cannot be rolled over?
Certain credits have carryover provisions. Please consult the instructions on the 511CR to determine the number of years unused credits may be carried over.
If I file Form 569, am I still required to file Form 572 for the same credit?
If a tax credit is transferred on or after July 1, 2011, Form 572 is due thirty days after the credit is transferred. Form 569 is due the twentieth day of the second month following the close of the tax year in which the transfer of the credit occurred.
If I have a transferable credit I have not transferred by the 20th day of the 2nd month after the close of my tax year, but I know I will be transferring the credit at a later date, do I file Form 569 by its due date without the transferee information?
Does Form 569 apply to credits established before July 1, 2011 or to just new credits?
Form 569 must be filed for any credit transferred or allocated on or after July 1, 2011, regardless of when the credit was established.
If I purchase a credit, how can I guarantee this form has been filed so my credit will not be disallowed?
The transferor of the credit can provide this information to you.
Can I put multiple credits on one Form 569 if I’m transferring or allocating all of the credits to the same person/entity?
Does the transferred or allocated total credit have to be above a certain dollar amount before I have to submit this form?
Does a new form have to be filed if the credit is transferred or allocated again?
Yes, file Form 569 to report any tax credit, authorized to be claimed under Title 68 of the Oklahoma Statutes that has been transferred or allocated on or after July 1, 2011.
If the entity transferring the credit fails to report the transfer, how is the return for the entity claiming the credit handled and can the individual claiming the credit file the form?
If the transferor fails to file Form 569, the tax credit may be disallowed. The transferee may not file the return on behalf of the transferor.
Where can I get a supplemental schedule?
A supplemental schedule is not necessary when using electronic Form 569. If a supplemental schedule is necessary, one should be created using the same format as the applicable Part 3 or Part 4.