Includes Form 512-S and Form 512-SA - Oklahoma• Two 512-SA nonresident shareholder agreement...

• Includes Form 512-Sand Form 512-SA

2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 20072007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 20072007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 20072007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 20072007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 20072007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 20072007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 20072007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 20072007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 20072007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 20072007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 20072007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 20072007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 20072007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 20072007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 20072007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 20072007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 20072007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 20072007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 20072007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 20072007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 20072007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007

2007 Oklahoma Small Business

Corporation Income Tax Forms and Instructions

•Download Forms 24/7

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This packet contains: •Instructionsforcompleting theForm512-S •Two512-Ssmallbusiness corporationincometaxforms •Two512-SAnonresident shareholderagreement incometaxforms

Filing date: •YourOklahomareturnisdue thesamedateasyour Federalreturn.

For assistance or forms: •Seepage15formethodsof contactingtheTaxCommission.

www.tax.ok.gov

General Filing Information

Who Must FileAllcorporationshavinganelectionineffectunderSubchapterSoftheInternalRevenueCodeengagedinbusinessorderivingincomefrompropertylocatedinOklahoma and that are required to file a Federal income tax return using Form 1120-S, must file a return on Form 512-S.DonotuseForm512.

AcompletecopyoftheFederalreturnmustbeenclosedwiththeOklahomaincometaxreturn.ForS-corporationsnotrequiredtocompletetheFederalSchedulesLandM-1, copies of the balance sheets from their financial statementmustbeenclosed.Failuretoenclosethere-quireddocumentationmaycauseadelayintheprocess-ingoftheS-corporation’sincometaxreturnaswellastheincometaxreturnsofitsshareholders.

2007 Oklahoma Small Business Corporate Income Tax

What’s New in the 2007 Oklahoma Tax Booklet?

•TheinstructionsfortheIndianEmploymentExclusionhavebeenincludedinthepacketfor2007.Seepage6forfurtherinformation.

• You can make a donation to benefit the OklahomaLeukemiaandLymphomaFund.Forfurtherinformation,seepage14.

2

GeneralFilingInformation...........................2-4

AmendedReturns...........................................4

LinebyLineInstructions............................5-14

QuickTaxInformation....................................14

WhenYouAreFinished................................14

HowtoContacttheOTC..............................15

Table of Contents

Common Errors

•CheckyourFINonallformsandschedules.•Fiscalyeardatesareacommonproblem. If you file based on a fiscal year, please list dates ontopofformwhereindicated.•EncloseacompletecopyofyourFederalreturn.•Encloseallrequiredschedules.

Time and Place for FilingThe return must be filed on or before the 15th day ofthethirdmonthfollowingthecloseofthetaxableyear,withtheOklahomaTaxCommission,POBox26800,OklahomaCity,Oklahoma73126-0800.Avalidextension of time in which to file your Federal return automaticallyextendstheduedateofyourOklahomareturnifnoOklahomaliabilityisowed.AcopyoftheFederalextensionmustbeenclosedwithyourOklahomareturn.Ifyourfederalreturnisnotextended,oranOklahoma liability is owed, an extension of time to file yourOklahomareturnmaybegrantedonForm504.

Inthecaseofcompleteliquidationorthedissolutionofacorporation,thereturnshallbemadeonorbeforethe15thdayofthefourthmonthfollowingthemonthinwhichthecorporationiscompletelyliquidated(orFed-eralduedate).

Fiscal Year and Short Period ReturnsFor all fiscal year and short period returns, the begin-ningandendingdatesofthetaxyearmustbeshownonthetopportionofthereturnwhereindicated.Omissionof this information may cause a significant delay in the processingofthereturnandnointerestwillaccrueonanyrefundpending.

•Part5“Shareholders’ProRataShareofIncome”hasbeenrevisedtoincludecolumnsforreportingeachshareholder’sshareofallowableoilandgasdepletion.

Don’t Forget to Sign your Return!

•Make a copy for your

records before mailing.

Withholding on Nonresident MembersPass-throughentities(partnerships,Scorporations,limitedliabilitycompaniesortrusts)arerequiredtowithholdOklahomaincometaxatarateof5%oftheOklahomashareoftaxableincomedistributedtoeachnonresidentmember(partner,member,shareholderor beneficiary). A pass-through entity is notrequiredtowithholdincometaxwithregardtoanynonresidentmemberwhosubmitsaNonresidentMemberWithhold-ing Exemption Affidavit (Form OW-15). Title 68 O.S. Sections2385.29,2385.30and2385.31.

Withholdingisnotrequiredondistributionsmadetopersons,otherthanindividuals,whoareexemptfromFederalincometax,organizationsgrantedanexemp-tionunderSection501(c)(3)oftheInternalRevenueCode,insurancecompaniessubjecttotheOklahomaGrossPremiumTaxandthereforeexemptfromOklaho-maincometaxunderTitle68O.S.Section2359(c),andnonresident members who have filed the Form OW-15 “Nonresident Member Withholding Exemption Affidavit”.

Withholdingisnotrequiredonanydistributionofroyaltyincomeonwhichthenonresidentroyaltyinterestincometaxhasalreadybeenwithheld,onanydistributionmadetoanotherpass-throughentityoronanydistributionofincomenotsubjecttoOklahomaincometax.

Thefollowingpass-throughentitiesarenotrequiredtowithhold: ·Anentityelectingtobetreatedasadisregarded entityforFederalincometaxpurposes.A disregardedentityisaneligibleentitythatis treatedasanentitythatisnotseparatefromits singleowner. ·Anentitythatdoesnothavearequirement, orproperlyelectsoutoftherequirement,to file a Federal income tax return. ·Anentitymakingdistributionsofincomenot subjecttoOklahomaincometax.

· Distributions made from the S Corporation

Scorporations,thatmakedistributionssubjecttoOkla-homawithholding,mustregisterwiththeOklahomaTaxCommission.Registerbycompletingtheregistrationform“RegistrationforOklahomaWithholdingforNon-residentMembers”(FormOW-11).Thisformmaybeobtainedbycallingourformsrequestlineat(405)521-3108orfromourwebsiteat:www.tax.ok.gov.

To file and pay the income tax withheld, the S corpora-tionmustcompleteFormOW-9-C“NonresidentOkla-homaDistributedIncomeWithholdingTaxReport”.TheS corporation will file Form OW-9-C on or before the due date(includingextensions)oftheScorporation’sincometaxreturn.

TheScorporationmustprovidenonresidentsharehold-ersaForm500-B,bytheduedate(includingextensions)ofitsincometaxreturn,showingtheirrespectiveamountofincomeandtaxwithheld.Eachnonresidentshare-holdermustencloseacopyoftheForm500-BwiththeirOklahoma income tax return as verification for this with-holding.CopiesofForm500-B’s,alongwiththecoverForm501,mustbesenttotheOklahomaTaxCommis-sionbythesamedate.

ForScorporationspayingthetaxonbehalfofnon-resi-dentshareholders,thenonresidentshareholder’swith-holdingmaybeclaimedonForm512-S,part1,line11.Acopyofthenonresidentshareholder’sForm500-BmustbeenclosedwiththeForm512-S.

Agricultural Commodity Processing Facility ExclusionOwnersofagriculturalcommodityprocessingfacilitiesmay exclude fifteen percent (15%) of their investment in aneworexpandedagriculturalcommodityprocessingfacilitylocatedwithinOklahoma.“Agriculturalcommodityprocessing facility” means buildings, structures, fixtures andimprovementsusedoroperatedprimarilyfortheprocessingorproductionofagriculturalcommoditiestomarketableproducts.Theinvestmentisdeemedmadewhenthepropertyisplacedinservice.Undernocircum-stancesshallthisexclusionlowertheshareholder’stax-ableincomebelowzero.Intheeventtheexclusiondoesexceedincome,anyunusedportionmaybecarriedoverforaperiodnottoexceedsix(6)years.

Attachaseparatescheduleshowingthetypeofinvestment(s),thedateplacedinservice,thecost,thetotalexclusionandtheexclusionavailableforeachshareholder.DonotincludethisexclusionintheOkla-homanetdistributableincome;eachshareholdershallreporttheirallowableshareoftheexclusiononthedes-ignatedlineoftheirindividualreturn.Foranonresidentwho does not file a nonresident agreement, include the shareholder’sallowableshareinPart5,column7.


3

Oklahoma Depletion In Lieu of Federal Depletion (Part 5)

Oklahomadepletiononoilandgaswellproduction,attheoptionofthetaxpayer,maybecomputedat22%ofgrossincomederivedfromeachOklahomapropertyduring the taxable year. Major oil companies, as defined inTitle52O.S.Section288.2,whencomputingOkla-homadepletionshallbelimitedto50%ofthenetincome(computedwithouttheallowancefordepletion)fromeachproperty.AnydepletiondeductionallowableistheamountsocomputedminusFederaldepletionclaimed.IfOklahomaoptionsareexercised,theFederaldeple-tionnotuseddueto65%limitmaynotbecarriedover.Leasebonusreceivedisconsideredincomesubjecttodepletion.Ifdepletionisclaimedonaleasebonusandnoincomeisreceivedasaresultofnon-producingproperties,uponexpirationofthelease,suchdepletionmustberestored.Acompleteschedulebypropertymustbefurnished.

Note:ForeachnonresidentshareholderwhoseincomeisreportedinPart1,line1a,thedepletionisreportedinPart1,line1b.

Refundable Credits...

A refundable credit is available for qualified capital expenditures,wagesandtrainingexpensesincurredbyabusinessenterprisewhoseprincipalactivityisdataprocessingservices,computersystemsdesignservicesorothercomputerrelatedservicesthatasofJuly1,2005,maintainsanOklahomaannualpayrollofatleast$85millionandanOklahomalaborforceof1,000ormorepersons.TheComputerIndustryCreditmaybeclaimed by filing Form 580 any time, or the credit may beclaimedontheestimatedtaxlineoftheincometaxreturn.Form580mustbeenclosedwiththereturn.Title68O.S.Section2357.201andRule710:50-15-100.

A refundable credit is available for qualified capital expenditures,wagesandtrainingexpensesincurredbyabusinessenterprisewhoseprincipalactivityisthemanufactureofwingcomponentsforlargecommercialaircraftandotheraerospacestructuresandcomponentsforcommercialandgovernmentaerospaceproducts.The Aerospace Industry Credit may be claimed by filing Form581anytime,orthecreditmaybeclaimedontheestimatedtaxlineoftheincometaxreturn.Form581mustbeenclosedwiththereturn.Title68O.S.Section2357.202andRule710:50-15-100.

Underpayment of Estimated Tax InterestAllScorporations,whicharepayingtaxatthecorporatelevel,arerequiredtomakeestimatedtaxpaymentswhenthetaxforthetaxableyearcanreasonablybeexpectedtobe$500ormore.Theestimatedtaxpaymentsshallnotbelessthan70%oftheamountoftaxdue(taxliabilitylessallcreditsexceptamountspaidonestimatedtaxandextensionpayments),or100%ofthe prior year’s tax liability. Should deficiencies occur, theamountofunderpaymentshallbesubjecttointerestatanannualrateof20%,orfractionthereof,fortheperiodofunderpayment.EncloseFormOW-8-P.

Note:Nounderpaymentofestimatedtaxinterestshallbeimposedifthetaxliabilityshownonthereturnislessthan$1,000.

Amended ReturnsUseForm512-Sforallamendedreturns.PlaceanXinthespaceprovided,intheupperrighthandcorneroftheform,nexttotheformnumber(512-SX).EncloseFederalAmendedForm1120-Swhenapplicable.

WhenamendingForm512-SforScorporationswhicharepayingtaxatthecorporatelevel,line9(taxpaidonestimate)mustbeadjustedbysubtractingpreviousover-paymentsoraddingtaxpreviouslypaid.Anoverpaymentonanamendedreturnmaynotbecreditedtoestimatedtax,butwillberefunded.Theamountappliedtoestimat-edtaxontheoriginalreturncannotbeadjusted.

Adjustments by Internal Revenue Service

Taxpayers who file “consents” extending the time for makingFederaladjustmentsautomaticallyextendthetimeformakingStateadjustments.Thetaxpayerisalsorequired to file an amended return reporting all Internal Revenue Service adjustments. A copy of the finalized RARmustbefurnished.

Bank and Credit Unions

Stateandnationalbanksandstatecreditunions,mak-ingaFederalSubchapterSelection,shallnotpayan“InLieu”taxof6%perTitle68O.S.Section2370.Theincomeorlossofthatentityshallbereportedattheshareholderlevel.


4

Line by Line Instructions for Determining Oklahoma Net Distributable Income

Computation of Allocable and/or Apportionable Income

Part 2, Column A and Part 3, Column A aretobecompletedbyallScorporations.AllScorporationsstartwithPart2.

Part 2, Column B and Part 3, Column B, aretobecompletedbyScorporationsderivingalloftheirincomefromwithinOklahomaorbyScorporationswhosebusi-nesswithinandwithoutOklahomaisoilandgasproduc-tion,mining,farming,orrental.Thisshouldbecompletedusingthedirectaccountingmethod.

Part 4istobecompletedbyScorporationsconductingabusinessofaunitarynature.Aunitarybusinessisonewhoseincomeisderivedfromtheconductinmorethanonestateofasinglebusinessenterprise,allthefactorsofwhichareessentialtotherealizationofanultimategainderivedfromtheenterpriseasawhole,andnotfromitscomponentpartswhicharetoocloselyconnectedandnecessarytoeachothertojustifydivisionorseparateallocation.

Safety Pays OSHA Consultation Service Exemption: (Part2,ColumnB,line19orPart4,line3)AnemployerthatiseligibleforandutilizestheSafetyPaysOSHAConsultationServiceprovidedbytheOklahomaDepartmentofLaborshallreceivea$1,000exemptionforthetaxyeartheserviceisutilized.EmployersmustbeabletosubstantiatetheirparticipationintheOklahomaDepartmentofLabor’sSafetyPaysConsultationServiceuponrequest.

Qualified Refinery Property: (Title68O.S.Section2357.204)

• The election to expense instead of depreciateA refinery may elect to treat 100% of the cost of qualified refinery property located in Oklahoma as an expense thatisnotchargeabletoacapitalaccount.Anycostsotreatedisallowedasadeductionfortheyearinwhichthe qualified refinery property expense is incurred. Once made,theelectionisirrevocablewithouttheconsentoftheOklahomaTaxCommission.ThedepreciationdeductedontheFederalreturnforsuchpropertymustbeaddedbackinthisandinallsubsequentyears.

Note:AreportmustbeattachedtocertifythattheprovisionsofTitle68O.S.Section2357.204(E)&(F)havebeenmet.Nodeductionunderthissectionwillbe allowed unless this certification is enclosed with the refinery’s income tax return.

If you are the Refinery -(Part2,ColumnB,line19,orPart4,line3asadeduction)To make the election to expense the cost of qualified refinery property located in Oklahoma in the tax year inwhichtheexpenseisincurred,deductthecostofthe property on a timely filed return, unless a second election is made by the refinery to allocate all or a portionofthedeductiontoitsowners.Ifthesecondelectionismade,donotdeductsuchportiononForm512-S.Eachownerwillreporttheirallowableshareofthedeductionontheirownincometaxreturn;see“Theelectiontoallocateexpensetoowners”below.

If you are the Refinery -(Part2,ColumnB,line5orPart4,line2asanaddition)If the election was made to expense the cost of qualified refinery property located in Oklahoma on this year or onapreviousyear’sOklahomareturn,thedepreciationdeductionclaimedontheFederalreturnforsuchpropertymustbeaddedbacktoarriveatOklahomataxableincome.Thisadditionmustbemaderegardlessofwhethertheexpenseisclaimedonthecorporatereturnorallocatedtoitsowners.

• The election to allocate expense to ownersThe refinery may elect to allocate all or a portion of the deductiontoitsowners.Theallocationforeachpersonisequaltotheratableshareofthetotalamountallocated,determinedonthebasisoftheownershipinterestoftheperson.Ifthiselectionismade,suchportionofthecost of the qualified refinery property is not deducted as anexpenseonForm512-S.Eachownerreportstheirallowableshareofthedeductiononthedesignatedlineon their own income tax return. The refinery must attach a schedule stating the qualified refinery property(ies), thedate(s)placedinservice,thetotalcostbeingexpensed,andtheportionofsuchexpenseallocatedtoeachowner,includingtheowner’snameandFederalidentification number.

If you are the owner -(Part2,ColumnB,line19,orPart4,line6asadeduction)Deduct the portion of the cost of the qualified refinery property allocated to you as an owner in the refinery. AttachaschedulestatingyourcorporatenameandFederal identification number, the refinery/company name and Federal identification number, the qualified refinery property(ies), the date(s) placed in service,andtheportionofcostallocatedtoyou.

5


Cost of Complying with Sulfur Regulations: (Title68O.S.Section2357.205)A qualified refinery may make an irrevocable election toallocatealloraportionofthecostofcomplyingwithsulfurregulationsissuedbytheEnvironmentalProtectionAgencyasadeductionallowabletoitsowners.Theallocationforeachpersonisequaltotheratableshareofthetotalamountallocated,determinedonthebasisoftheownershipinterestoftheperson.Thetaxableincomeof the refinery shall not be reduced by the reason of any amountallowedunderthissection.

If you are the Refinery -Tomaketheelection,attachaschedulestatingyourcorporate name and Federal identification number (FIN), a listofthecostsofcomplyingwithsulfurregulationssomeorallofwhicharebeingallocatedtoyourowners,andtheportionofsuchcostsallocatedtoeachowner.Includingthe owner’s name and Federal identification number. You shallalsoprovideeachownerwithwrittennoticeoftheamountoftheallocation.ThenoticemustincludeyourcorporatenameandFINandtheowner’snameandFIN.

If you are the Owner -(Part2,ColumnB,line19,orPart4,line6)Deducttheportionofthecostofcomplyingwithsulfurregulationswhichhavebeenallocatedtoyou.Attachthewritten notice of the allocation received from the refinery.

Employers Providing Child Care Programsfor their Employees:(Part2,ColumnB,line5orPart4,line6asanaddition)EmployersincurringexpensestoprovideOklahomachildcareservicesforchildrenoftheiremployeesmaybeallowedacredit.Ifallowed,theeligibleexpensesuponwhichthecreditisbasedmustbeaddedbacktoarriveatOklahomanetdistributableincome.SeeForm511CR,number12forthecredit.Encloseascheduleofeligibleexpensesandthecomputationofthecredit.Title68O.S.Section2357.26andRule710:50-15-91.

Indian Employment Exclusion:(Part2,ColumnB,line19orPart4,line3)All qualified wages equal to the federal Indian Employ-mentCreditsetforthin26U.S.C.A.,Section45A,shallbedeductedfromtaxableincome.DeductontheOkla-homareturn,anamountequaltothereductionofsalariesandwagesreportedontheFederalreturnasaresultoftheForm8845“IndianEmploymentCredit”.Thededuc-tionallowedshallonlybepermittedforthetaxyearsinwhichtheFederalcreditisallowed,evenifnotusedinsuchyearbecauseoftaxliabilitylimitations.EncloseacopyoftheFederalreturn,Form8845andifapplicable,Form3800.

Part 2TocomputeOklahomanetdistributableincome,AllScorporationsstartwithPart2.

Lines 1-21, Column A:Part2,ColumnAmustbecompletedbyallScorpora-tions. List exact figures as reported on the front page of yourFederal1120-S.

Lines 1-21, Column B:Part2,ColumnBistobeusedbyScorporationsderivingalloftheirincomefromwithinOklahoma.ThiscolumnisalsotobeusedbyallScorporationswhosebusiness,bothwithinandwithoutOklahoma,isoilandgasproduction,mining,farming,orrental.Thisshouldbecompletedusingthedirectaccountingmethod.ScorporationsconductingbusinessofaunitarynaturedonotcompleteColumnB.

ScorporationswiththeFederalIndianEmploymentCreditrefertothe“IndianEmploymentExclusion”intheleftcolumnofthispage.

ScorporationsincurringexpensestoprovideOklahomachildcareservicesforchildrenoftheiremployeesshouldrefertothe“EmployersProvidingChildCareProgramsfortheirEmployees”intheleftcolumnofthispage.

Part 3 If Federal and Oklahoma net distributable incomes are the same,

you may complete line 18 of Part 3, then complete Part 5. A copy of your Federal Form 1120-S and K-1

must be enclosed with your Oklahoma return. An Oklahoma return must be filed.

Lines 1-18, Column A: Part3,ColumnAistobeusedbyallScorporations.Listfigures as reported on your Federal 1120-S, Sch. K. Lines 1-18, Column B: Part3,ColumnBistobeusedbyScorporationsderiv-ingalloftheirincomefromwithinOklahoma.ThiswillbethesameasinColumnA,exceptforlines4band4c.

ThiscolumnisalsousedbyScorporationswhosebusi-nesswithinandwithoutOklahomaisoilandgasproduc-tion,mining,farming,orrental.Completethiscolumnonadirectaccountingbasisasfollows:

Line 1 -Income(loss)shallbeallocatedinaccordancewiththesitusofsuchproperty.Overheadexpenseshallbeallo-catedonthebasisofdirectexpenseinOklahomatothetotaldirectexpenseeverywhere.UsePage2,Part2orencloseaschedule.

Lines 2 and 3 -Income(loss)fromrealandtangiblepersonalpropertyshallbeallocatedinaccordancewiththesitusofsuchproperty.6


Line 4 -AccountsreceivableinterestincomeandinterestincomefrominvestmentsheldtogenerateworkingcapitalshallbeallocatedtoOklahomaonthebasisofdirectexpense.Seeline1onpage6.

Allotherintangibleincome(loss)shallbeallocatedinaccordancewiththesitusoftheScorporation.Gainsorlossesfromthesaleofleasesandgainsorlossesfromthesaleofrealandtangiblepersonalproperty,shallbeallocatedinaccordancewiththesitusoftheproperty.

Line 4b - State and Municipal Bond Interest:SCorporationsdomiciledinOklahomathatreceiveincomeonbondsissuedbyanystateorpoliticalsubdivisionthereof,exemptfromFederaltaxationbutnotexemptfromtaxationbythelawsoftheStateofOklahoma,shalladdthetotalofsuchincometoarriveatOklahomaincome.

1) Incomefromallbonds,notesorotherobligationsissuedbytheStateofOklahoma,theOklahomaCapitalImprovementAuthority,theOklahomaMunicipalPowerAuthority,theOklahomaStudentLoanAuthority,andtheOklahomaTransportationAuthority(formerlyTurnpikeAuthority)isexemptfrom Oklahoma income tax. The profit from the saleofsuchbond,noteorotherobligationsshallbefreefromtaxation.

2) IncomefromlocalOklahomagovernmentalobligationsissuedafterJuly1,2001,otherthanthoseprovidedforinline1,isexemptfromOklahomaincometax.Theexceptionsarethoseobligationsissuedforthepurposeofprovidingfinancing for projects for nonprofit corporations. Localgovernmentalobligationsshallincludebondsornotesissuedby,oronbehalfof,orforthebenefit of Oklahoma educational institutions, cities, towns,orcountiesorbypublictrustsofwhichanyof the foregoing are beneficiary.

3) IncomefromOklahomaStateandMunicipalBondsissuedpriortoJuly2,2001,otherthanthoseprovidedforinline1,isexemptfromOklahomaincometaxonlyifsoprovidedbythestatuteauthorizingtheirissuance.

4) Incomeonbondsissuedbyanotherstateorpoliticalsubdivisionthereof(non-Oklahoma),exemptfromFederaltaxation,istaxableforOklahomaincometax.

Encloseascheduleofallmunicipalinterestreceivedbysourceandamount.Iftheincomeisfromamutualfundwhichinvestsingovernmentobligations,enclosedocumentationfromthemutualfundtosubstaniatethepercentageofincomederivedfromobligationsexemptfromOklahomatax.

Note: If the interest is exempt, the capital gain/loss from the sale of the bond may also be exempt. The gain/loss fromsaleofastateormunicipalbond,otherthanthoseprovidedforinline1,isexemptonlyifsoprovidedbythestatuteauthorizingitsissuance.

Line 4c - Interest on U.S. Government Obligations:Ifyoureportinterestonbonds,notes,andotherobliga-tionsoftheU.S.onyourFederalreturn,itmaybeex-cludedfromyourOklahomaincomeifadetailedsched-uleisfurnished,accompaniedwith1099sshowingtheamountofinterestincomeandthenameoftheobligationfromwhichtheinterestisearned.Iftheincomeisfromamutualfundwhichinvestsingovernmentobligations,enclosedocumentationfromthemutualfundtosubstani-atethepercentageofincomederivedfromobligationsexemptfromOklahomatax.InterestfromentitiessuchasFNMA&GNMAdoesnotqualify.

Lines 7 through 9 -Gainsorlossesfromthesaleofthefollowingshallbeal-locatedinaccordancewiththesitusoftheproperty: • realortangiblepersonalproperty, • lease,royaltyorbonusincomefromoilandgas

properties.

Line 10 -Thegainonproperty,forwhichasection179expensedeductionwaspassedthroughtoshareholdersandwhichisreportedasSupplementalInformationonthe Federal K-1, is to be reported on this line for Okla-homapurposes.Enclosethefollowing:descriptionoftheproperty,datethepropertywasacquired,datetheprop-ertywassold,grosssalesprice,costorotherbasisplusexpenseofsale(includingtheScorporation’sbasisreductioninthepropertyduetothesection179expensededuction),depreciationallowedorallowable(notinclud-ingthesection179expensededuction),andamountofsection179expensededuction(ifany)passedthroughtoeachshareholderforthepropertyandtheScorporation’staxyear(s)inwhichtheamountwaspassedthrough.

Lines 12 through 17 - Expensesrelativetotheincomeaboveshallbeallocateddirectlytothatincome.

Part 3, continued...

7


Part 4Part4istobeusedbyScorporationsconductingabusinessofunitarynature.Aunitarybusinessisonewhoseincomeisderivedfromtheconductinmorethanonestateofasinglebusinessenterpriseallthefactorsofwhichareessentialtotherealizationofanultimategainderivedfromtheenterpriseasawhole,andnotfromitscomponentpartswhicharetoocloselycon-nectedandnecessarytoeachothertojustifydivisionorseparateallocation.

Generally,theresultingamountisapportionedtoOkla-homabasedonthe3-factorformula.Thebasisoftheapportionmentistheaverageofthreefactorsconsistingofproperty,payrollandsales.EachfactorisaratioofthetotalwithinOklahomatothetotaleverywhere.TotheincomeapportionedtoOklahomathereistobeaddedallincomeseparatelyallocatedtoOklahomawiththeresultbeingOklahomataxableincome.Title68O.S.Section2358.

Line 1 -EnternetdistributableincomefromPage2,Part3,ColumnA,line18.

Line 2 -Deductionsrelatingtoincomewhichissepa-ratelyallocableshallnotbeallowedasapportionableandwillbeenteredhere.

Line 3 - IncomefromU.S.obligations(seePart3,line4cinstructions)andnetincomeseparatelyallocated(oilandgasproduction,mining,farming,orrentalsandotherCorporationincomeorloss)willbeenteredhere.Gainsorlossesfromsaleofintangiblepersonalprop-ertywhichisdirectlyallocatedshouldalsobeenteredhere.

Scorporationswiththe“FederalIndianEmploymentCredit”referto“IndianEmploymentExclusion”onpage6.

Line 4 - Totalapportionableincome.

Line 5 - ApportionmentFactorfromApportionmentSchedule.

Line 6 - IncomeseparatelyallocatedtoOklahomashouldbeenteredhere(interestincomefromstateobli-gationsorpoliticalsubdivisions,oilandgasproduction,mining,farmingorrentals,etc.).

Scorporationsincurringexpensestoprovidechildcareservicesforchildrenoftheiremployeesshouldreferto

the“EmployersProvidingChildCareProgramsfortheirEmployees”onpage6.

Line 7 - Oklahomanetdistributableincome.Placethisfigure on Page 2, Part 3, Column B, line 18. Then com-pletePart5.

Part 5AllScorporationsmustcompletePart5.

IfyourbusinessiseitherwhollyOklahomaorofanal-locablenature,completePart5afteryoucompletePart3.Ifyourbusinessisofaunitarynature,completePart5afteryoucompletePart4.

Shareholder’s Pro Rata Share of IncomeEnterthenames,SocialSecurityNumbersorFederalIdentification Numbers and addresses of the sharehold-ers,andwriteintheapplicablecolumneachsharehold-er’sproratashareofnetincome,whetherdistributedornot.

Notice:TheamountshownonPart5maynotbetheamounttobeenteredontheshareholder’sOklahomaincometaxreturn.ThisamountincludesallallowableScorporationincome,lossesanddeductions;however,someoftheseitemsmaybelimitedontheFederalindividualreturn.IftheseitemsareallowedinfullorinpartonyourFed-eralincometaxreturn,theywillbeallowedtothesameextentonyourOklahomareturn.

Corporations Please Note:NonresidentshareholdersmustencloseForm512-SA indicating that an income tax form will be filed withOklahomareportingtheirincomeorloss.ThisagreementmustbeenclosedwiththeoriginalScorporationincometaxreturn,Form512-S,foreachnonresidentshareholder,otherwisethecorporationshallbetaxedonthatpartofthecorporation’snetincomeallocabletothesharesofstockownedbythenonresidentshareholder.

Oncetheagreementhasbeensigned,itisirrevocableforthistaxyear.Ifasignedagreementisnotsubmittedwith the original filed return, the tax on the corporation is binding.Shareholder’ssocialsecuritynumberorFederalidentification number must be shown for the agreement tobevalid.

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Depletion

Entereachshareholder’sallowabledepletion.Encloseadetailedschedule.

Withholding

OklahomaincometaxiswithheldfromoilandgasroyaltiespaidtononresidentScorporations.Entereachshareholder’sportionofsuchwithholding.TheScorpo-rationmustencloseitsForm500-A,Form1099-MISC,Form K-1 or other documentation to substantiate any Oklahomawithholdingpassingthroughtoitssharehold-ers.

Note:Ifyouhaveanynonresidentshareholderswhohave not filed a withholding exemption affidavit (Form OW-15),Oklahomaincometaxshouldhavebeenwith-heldonanydistributionofOklahomataxableincome.Suchwithholdingisnotreportedhere,insteadyoushouldhaveissuedaForm500-Btoyournonresidentshareholder.

Credits

Enteranddescribeeachshareholder’sportionofcredits.Encloseallformsrequiredtosubstantiatethecredit(s).SeetheinstructionsforPart1“OklahomaCredits”formoredetailonthecreditsavailable.

Part 1

Part1istobecompletedforthosenonresidentshare-holdersforwhomtheNonresidentShareholderAgree-ment(Form512-SA)isnotenclosed.TheScorporationwillbetaxedonthenon-resident’sshareofincome.

Line 1b - Nonresident Share of Deductions• Share of Net Operating Loss CarryoverEntertheamountofNetOperatingLosscarryoverwhichis attributable to those nonresidents who did not file a nonresidentshareholderagreement(Form512-SA)inthelossyear.Encloseadetailedschedule.

• Oklahoma Capital Gain Deduction:TaxpayerscandeductqualifyinggainsreceivingcapitaltreatmentwhichareincludedinFederaltaxableincome.“Qualifyinggainsreceivingcapitaltreatment”meanstheamount of the net capital gains, as defined under the InternalRevenueCodeSection1222(11).Thequalifyinggainmust:

1)BeearnedonrealortangiblepersonalpropertylocatedwithinOklahomathatyouhaveowned,either directly or indirectly, for at least five uninterruptedyearspriortothedateofthesale,or

2) BeearnedonthesaleofstockorownershipinterestinanOklahomaheadquarteredcompany,limitedliabilitycompany,orpartnershipwheresuchstockorownershipinteresthasbeenowned,directlyorindirectly,byyouforatleastthree(twoforindividuals)uninterruptedyearspriortothedateofthesale.

Form561-SisusedtodeterminethequalifyingOklahomanetcapitalgainofthenonresidentshareholderswhoseincomeisreportedonForm512-S,Part 1, those who did not file a nonresident shareholder agreement(Form512-SA).EncloseForm561-SandacopyofyourFederalScheduleD.

• Oklahoma Depletion:ForeachnonresidentshareholderwhoseincomeisreportedinPart1,line1a,Oklahomadepletiononoilandgaswellproduction,attheoptionofthetaxpayer,maybecomputedat22%ofgrossincomederivedfromeachOklahomapropertyduringthetaxableyear.Majoroil companies, as defined in Title 52 O.S. Section 288.2, whencomputingOklahomadepletionshallbelimitedto50%ofthenetincome(computedwithouttheallowancefordepletion)fromeachproperty.

Leasebonusreceivedisconsideredincomesubjecttodepletion.Ifdepletionisclaimedonaleasebonusandnoincomeisreceivedasaresultofnon-producingproperties,uponexpirationofthelease,suchdepletionmustberestored.Acompleteschedulebypropertymustbefurnished.

Part 5, continued...

Electronic PaymentsAccepted through WebPaperchecksarenotyouronlyoptionwhenpaying

yourbalancedue.YoumaypayelectronicallythroughtheOklahomaTaxCommissionwebsite.

Logontowww.tax.ok.govandvisitthe“Payment Options”linktomakeapaymentelectronically.

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Oklahoma Credits...Encloseacopyofthecreditformorschedule.Completethescheduleshowingeachshareholder’sproratashareofcredit.Foreachcredit,enterthatportionattributableto the nonresident shareholders who do not file a non-residentshareholderagreement(Form512-SA).

Line 3 - Oklahoma Investment/New Jobs CreditThoseengagedinmanufacturingorthatareawebsearchportal(includingpartnershiporSub-Spassthrough) who are entitled to Oklahoma Investment/New JobsCreditencloseForm506.(ThiscredithasnorelationshiptoFederalInvestmentCredit.)Title68O.S.Section2357.4andRule710:50-15-74.

Line 4 - Gas Used in Manufacturing CreditAcreditisavailableattherateofthreemillsperthou-sandcubicfeetofgasusedorconsumedduringeachtaxableyearwhenusedinmanufacturing.Thisshallnot apply to the first twenty-five thousand MCF used or consumed.Title68O.S.Section2357(C).

Line 5 - Credit for Biomedical Research ContributionAcreditisallowedtoanytaxpayerwhomakesadona-tion to a qualified independent biomedical research insti-tute.Thecreditis50%oftheamountdonated,butmaynotexceed$1,000.Anycreditallowed,butnotused,willhaveafouryearcarryoverprovision.An“independentbiomedicalresearchinstitute”meansanorganizationwhichisexemptfromtaxationundertheInternalRev-enueCodesection501(c)(3)whoseprimaryfocusisconductingpeer-reviewedbasicbiomedicalresearch.Theorganizationshallhaveaboardofdirectors,beableto accept grants in its own name, be an identifiable insti-tutethathasitsownemployeesandadministrativestaff,andreceiveatleast$15millioninNationalInstituteofHealthfundingeachyear.Acopyofthecanceledcheckorreceiptmustbeprovidedasproofofthedonation.Title68O.S.Section2357.45.

Part 1, continued... Line 6 - Other CreditsTheamountofothercreditsclaimedonForm511CRshouldbeenteredonthisline.Enterintheboxthenumberthatcorrespondswiththecredittowhichthetaxpayerisentitled.Ifyouareentitledtomorethanonecredit,enter“99”inthebox.SeethefollowingforalistofcreditsavailableonForm511CR.EncloseForm511CRandanyapplicableformsorschedules.Thisformcanbeobtainedbycallingourformsrequestlineat(405)521-3108orfromourwebsiteatwww.tax.ok.gov.

•Oklahoma Investment/New Jobs Credit EncloseForm506. Title68O.S.Section2357.4 andRule710:50-15-74.•CoalCredit Title68O.S.Section2357.11 andRule710:50-15-76.•CreditforEnergyAssistanceFundContribution Title68O.S.Section2357.6.•VentureCapitalCredit Title68O.S.Section2357.7,8 andRule710:50-15-77,78.•CreditforConversionofaMotorVehicletoClean Burning Fuels or for Investment in Qualified ElectricMotorVehicleProperty Title68O.S.Section2357.22 andRule710:50-15-81.•CreditforHazardousWasteDisposal Title27AO.S.Section2-11-303 andRule710:50-15-75.•Credit for Qualified Recycling Facility Title68O.S.Section2357.59 andRule710:50-15-84.•SmallBusinessCapitalCredit EncloseForm527-A. Title68O.S.Section2357.60-2357.65 andRule710:50-15-86.•OklahomaAgriculturalProducersCredit EncloseForm520. Title68O.S.Section2357.25 andRule710:50-15-85.•SmallBusinessGuarantyFeeCredit EncloseForm529. Title68O.S.Section2357.30.•CreditforEmployersProvidingChildCarePrograms Title68O.S.Section2357.26 andRule710:50-15-91.•CreditforEntitiesintheBusinessofProvidingChildCareServices Title68O.S.Section2357.27.•CreditforFoodServiceEstablishmentsthatPayforHepatitisAVaccinationfortheirEmployees Title68O.S.Section2357.33.•CreditforCommercialSpaceIndustries Title68O.S.Section2357.13.•CreditforNonstopAirServicefromOklahomatotheCoast Title68O.S.Section2357.28.

Tax Tips:Checkyourcalculationscarefully.Don’t forget to sign your tax return.Alwayscopyyourreturnforyourrecords.

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Part 1, continued...•CreditforTourismDevelopment Title68O.S.Section2357.34-2357.40.•OklahomaLocalDevelopmentandEnterpriseZoneIncentiveLeverageActCredit Title68O.S.Section2357.81.•Credit for Qualified Rehabilitation Expenditures Title68O.S.Section2357.41 andRule710:50-15-108.•CreditforSpaceTransportationVehicleProvider Title68O.S.Section2357.42 andRule710:50-15-93.•RuralSmallBusinessCapitalCredit EncloseForm526-A. Title68O.S.Section2357.71-2357.76 andRule710:50-15-87.•CreditforElectricityGeneratedbyZero-EmissionFacilities Title68O.S.Section2357.32A.•CreditforFinancialInstitutionsMakingLoansundertheRuralEconomicDevelopmentLoanAct Title68O.S.Section2370.1.•CreditforManufacturersofSmallWindTurbines Title68O.S.Section2357.32B andRule710:50-15-92.•Credit for Qualified Ethanol Facilities Title68O.S.Section2357.66 andRule710:50-15-106.•PoultryLitterCredit Title68O.S.Section2357.100 andRule710:50-15-95.•Volunteer Firefighter Credit Enclose the Oklahoma State Firefighter Association’sform,Form1AorForm1B. Title68O.S.Section2385.7 andRule710:50-15-94.•Credit for Qualified Biodiesel Facilities Title68O.S.Section2357.67 andRule710:50-15-98.•FilmorMusicProjectCredit EncloseForm562. Title68O.S.Section2357.101 andRule710:50-15-101.•CreditforBreedersofSpeciallyTrainedCanines Title68O.S.Section2357.203 andRule710:50-15-97.•CreditforWagesPaidtoanInjuredEmployee Title68O.S.Section2357.47 andRule710:50-15-107.•Credit for Modification Expenses Paid for an Injured Employee Title68O.S.Section2357.47 andRule710:50-15-107.•DryFireHydrantCredit Title68O.S.Section2357.102 andRule710:50-15-99.•Credit for the Construction of Energy Efficient Homes Title68O.S.Section2357.46 andRule710:50-15-104.•CreditforRailroadModernization Title68O.S.Section2357.104 andRule710:50-15-103.

•ResearchandDevelopmentNewJobsCredit EncloseForm563. Title68O.S.Section54006 andRule710:50-15-105.

Line 11 - Oklahoma WithholdingEntertheportionofOklahomawithholdingthatispass-ingthroughtheScorporationtothosenonresidentshareholders who did not file a nonresident shareholder agreement(Form512-SA).Theshareholder’sportionofsuchwithholdingisshownonPage4,Part5,Column10.EnclosetheForm1099-MISC,Form500-A,FormK-1 or other withholding statement received by the S corporationtosubstantiatetheOklahomawithholding.

EntertheOklahomaincometaxwithheldfromOklahomadistributionsmadetoyournonresidentshareholderswhodid not file a nonresident shareholder agreement (Form 512-SA).Theshareholder’swithholdingisshownontheForm500-B.EncloseacopyoftheForm500-Bforeachsuchnonresidentshareholder.

Note:DonotincludetheportionoftheScorporation’swithholdingpassingthroughtoresidentshareholdersorto those nonresident shareholders who filed a nonresi-dentshareholderagreement(Form512-SA).

Line 15 - Donations from Your RefundYou have the opportunity to make a financial gift from yourrefundtoavarietyofOklahomaorganizations.Entertheamountofyourdonationandplacethenumberoftheorganizationshownonpages12-14intheovalonline15ofForm512-S.Ifyougivetomorethanoneorganization,puta“99”intheovalandattachascheduleshowinghowyouwouldlikeyourdonationsplit.

Visitourwebsiteatwww.tax.ok.gov

forallyourtaxneeds24hoursaday,sevendaysaweek.

Need a form or have a tax question after hours?

No problem.

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Oklahoma Wildlife Diversity ProgramTheOklahomaWildlifeDiversityProgramisfundedprimarilybyconcernedOklahomans.Alldonationspro-videforavarietyofprojects.Ifyouarenotreceivingarefund,youmaystilldonate.Mailyourcontributionto:

Wildlife Diversity Program1801 North Lincoln Blvd. Oklahoma City, OK 73105

Department of Veterans Affairs ContributionYoumaydonatefromyourtaxrefundtohelptheDepart-mentofVeteransAffairspurchaseequipment,developcapitalimprovementprojectsandtoacquirepropertiesforexpandingorimprovingexistingprojects.Ifyouarenotreceivingarefund,youmaystilldonate.Mailyourcontributionto:

Department of Veterans AffairsPO Box 53067

Oklahoma City, OK 73152

Oklahoma Breast and Cervical Cancer FundYou may donate for the benefit of breast and cervical cancerearlydetection,publiceducationandresearch.Yourdonationwillbeplacedinafundtobeusedforthepurposeoffundingprogramstoincreaseknowledgeofbreastandcervicalcancerriskandpreventionandtoprovidemammograms,paptestsandbiopsiesforlowincomewomen.Ifyouarenotreceivingarefund,youmaystilldonate.Mailyourcontributionto:

State Department of HealthBreast and Cervical Cancer Revolving Fund

1000 NE 10th StreetOklahoma City, OK 73152

Oklahoma School for the Deaf and Oklahoma School for the BlindTheOklahomaSchoolfortheDeafandtheOklahomaSchoolfortheBlindprovidefreepreschoolthroughhighschooleducationprogramsforchildrenwithhearingorvisiondisabilities.Theschoolsalsoprovideadviceforfamiliesofinfantsandpreschoolersandconsultationstatewidetohelplocalschoolsmeettheeducationalneedsoftheirstudentswiththesedisabilities.Ifyouarenotreceivingarefund,youmaystilldonate.Mailyourcontributionto:

Oklahoma Department of Rehabilitation Services

c/o: OSD/OSB Donation3535 NW 58th Street, #500

Oklahoma City, OK 73112-4815

Oklahoma Silver Haired Legislature and Alumni llllllllAssociation ProgramsYou may donate from your tax refund for the benefit of theOklahomaSilverHairedLegislatureandtheirAlumniAssociationactivities.TheOklahomaSilverHaired

Legislaturewascreatedin1981asaforumtoeducateseniorcitizensinthelegislativeprocessandtohighlighttheneedsofolderpersonstotheOklahomaStateLeg-islature.MoniesgeneratedfromdonationswillbeusedtofundtheOklahomaSilverHairedLegislators,trainingsessions,interimstudiesandadvocacyactivities.Ifyouarenotreceivingarefund,youmaystilldonate.Mailyourcontributionto:

Oklahoma Silver Haired Legislature and Alumnic/o Division of Aging Services

312 NE 28th StreetOklahoma City, OK 73105

Support of Oklahoma Common SchoolsYou may donate from your tax refund for the benefit of Oklahomacommonschools.DonationswillbeplacedinafundtobeusedbytheDepartmentofEducationforthepurposeoffundingcommoneducation.Moniesfromthefundwillbeapportionedasandinthemannerthatstateaidisprovidedtothecommonschools.Ifyouarenotreceivingarefund,youmaystilldonate.Mailyourcontributionto:

Oklahoma State Department of EducationC/O Support of Oklahoma Common Schools

2500 North Lincoln Blvd., Suite 112Oklahoma City, OK 73105

Support of Oklahoma Road and Highway MaintenanceYou may donate from your tax refund for the benefit of maintenanceofOklahoma’sroads,highwaysandbridg-es.DonationswillbeplacedinafundtobeusedbytheDepartmentofTransportation(ODOT)forthepurposeoffundingroad,highwayandbridgemaintenance.Ifyouarenotreceivingarefund,youmaystilldonate.Mailyourcontributionto:

Oklahoma Department of TransportationAttn: Comptroller Division

200 NE 21st StreetOklahoma City, OK 73105

Support of Oklahoma Medicaid ProgramYou may donate from your tax refund for the benefit of theOklahomaMedicaidProgram.Theprogramprovideshealthcaretolow-incomechildren,pregnantwomen,elderlyOklahomansandpeoplewithdisabilities.YourdonationwillbematchedwithFederalMedicaidmoney.Everydollardonatedwilldrawapproximately$2.40inFederaldollars.DonationswillbeplacedinafundtobeusedbythestateHealthCareAuthorityforthepurposeoffundingtheMedicaidprogram.Ifyouarenotreceiv-ingarefund,youmaystilldonate.Mailyourcontributionto:

OHCAPO Box 18276


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County Fair Enhancement FundYou may donate from your tax refund for the benefit of Oklahomacountyfairs.DonationswillbeplacedintheOklahomaCountyFairEnhancementFund.FundswillbeexpendedbytheStateDepartmentofAgriculture,FoodandForestrytobeusedforconstruction,facilityimprovements,andpaymentofpremiumsatcountyfairs.Ifyouarenotreceivingarefund,youmaystilldonate.Mailyourcontributionto:

Oklahoma Dept. of Agriculture, Food & ForestryMarket Development Division

2800 North Lincoln Blvd.Oklahoma City, OK 73105

Junior Livestock Auction Scholarship FundYou may donate from your tax refund for the benefit of theStateofOklahomaJuniorLivestockAuctionScholar-shipRevolvingFund.Moniesfromthefundmaybebud-getedandexpendedbytheStateDepartmentofAgricul-ture,FoodandForestryforthepurposeofhelpingfundeducationalopportunitiesforstudentsexhibitingatthetwostatewideJuniorLivestockAuctionswhichservicetheentirestateandareheldannuallyinOklahomaCityandTulsa.Ifyouarenotreceivingarefund,youmaystilldonate.Mailyourcontributionto:

Oklahoma Dept. of Agriculture, Food & ForestryMarket Development Division

2800 North Lincoln Blvd. Oklahoma City, OK 73105

Support of Programs for Volunteers to Act as Court Appointed Special Advocates for Abused or Neglected ChildrenYoumaydonatefromyourtaxrefundtosupportpro-gramsforvolunteerstoactasCourtAppointedSpecialAdvocatesforabusedorneglectedchildren.DonationswillbeplacedintheIncomeTaxCheckoffRevolvingFundforCourtAppointedSpecialAdvocates.Monieswill be expended by the Office of the Attorney General forthepurposeofprovidingrecruitment,training,andsupervisionofthespecialadvocates.AllCourtAppointedSpecialAdvocateprogramsinthestateshallreceiveaportionofthismoney.Ifyouarenotreceivingarefund,youmaystilldonate.Mailyourcontributionto:

Oklahoma CASA Association, Inc.PO Box 54946


Oklahoma Pet Overpopulation FundYou may donate from your tax refund for the benefit of theOklahomaPetOverpopulationFund.MoniesplacedinthisfundwillbeexpendedbytheDepartmentofAg-riculture,FoodandForestryforthepurposeofdevelop-ingeducationalprogramsonpetoverpopulationandforimplementing spay/neuter efforts in this state. If you are notreceivingarefund,youmaystilldonate.Mailyourcontributionto:

Oklahoma Dept. of Agriculture, Food & ForestryAnimal Industry Division2800 North Lincoln Blvd.


Support the Retirement of Capitol Dome DebtYouhavetheopportunitytohelpretirethedebtincurredinconstructionandcompletionoftheOklahomaStateCapitolDome.AnyonemaydonatetotheOklahomaCentennialCommission’sFundtodefraythedomecon-structioncost.

Ifyouarenotreceivingarefund,youmaystilldonate.Mailyourcontributionto:

Oklahoma Centennial Commemoration Fund, Inc.

133 W Main Street, Suite 100Oklahoma City, OK 73102

Support of the Oklahoma National GuardYouhavetheopportunitytodonatefromyourtaxrefundfor the benefit of providing financial relief to qualified membersoftheOklahomaNationalGuardandtheirfamilies.DonationswillbeplacedintheIncomeTaxCheckoffRevolvingFundfortheSupportoftheOkla-homaNationalGuardReliefProgram.Monies,toassistOklahomaNationalGuardmembersandtheirfamilieswithapprovedhardshipexpenses,willbeexpendedbytheMilitaryDepartment.

Ifyouarenotreceivingarefund,youmaystilldonate.Peasemailyourcontributionto:

Operation Homefront Task Force3501 Military Circle


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Estimated Income Tax OptionsFormsandpaperchecksarenotyouronlyoptionwhenmakingestimatedincometaxpayments.Youmaypay

directlyfromyourcheckingaccountelectronicallythroughtheOklahomaTaxCommissionwebsite.

Logontowww.tax.ok.govandvisitthe“Payment Options”linkformoreinformation.


Oklahoma Leukemia and Lymphoma FundYouhavetheopportunitytodonatefromyourtaxrefundfor the benefit of the Oklahoma Leukemia and Lym-phomaRevolvingFund.MoniesfromthefundwillbeusedbytheStateDepartmentofHealthforthepurposeofsupportingvoluntaryhealthagenciesdedicatedtocuringLeukemia,Lymphoma,Hodgkin’sDisease,andMyelomaandtoimprovingthequalityoflifeofpatientsandtheirfamilies.

Ifyouarenotreceivingarefund,youmaystilldonate.Mailyourcontributionto:

State Department of HealthOklahoma Leukemia and Lymphoma

Revolving Fund - 228PO Box 268823


Line 19 -Underpayment of Estimated Tax InterestAllScorporationsarerequiredtomakeestimatedtaxpaymentsifthetaxliabilityis$500ormore.Toavoidthe20%UnderpaymentofEstimatedTaxInterest,timelyfiled estimated tax payments are required to be equal tothesmallerof70%ofthecurrentyeartaxliabilityor100%ofyourprioryeartax.Thetaxliabilityisthetaxduelessallcreditsexceptamountspaidonestimatedtaxandextensionpayments.

Note: NoUnderpaymentofEstimatedTaxInterestshallbeimposedifthetaxliabilityshownonthereturnislessthan$1,000.EncloseFormOW-8-P.

Line 20 - Delinquent Penalty and InterestInterest at the rate of 1 1/4% per month shall be paid on thetaxduefromtheoriginalduedateuntilpaid.90%ofthetaxliabilitymustbepaidbytheoriginalduedateofthereturntoavoidadelinquentpenaltychargeof5%forlatepayment.

15

TheOklahomaTaxCommission’sQuickTaxsystem is available for your business tax filing needs.Thisonlinesystemwillacceptreturnsandpaymentsforthefollowingtaxtypes:

Sales TaxUse Tax (vendor and consumer)

Withholding TaxMixed Beverage Tax

Waste Tire TaxNonresident Royalty Withholding Tax

Estimated Income Tax

PaymentoptionsincludeACHdebit,ACHcred-it,andcreditcard.Setupjustlikeyourpaperforms,theQuickTaxsystemisfasterandmucheasierthanthepapermethod.Also,whenyoufinish, you will receive a confirmation number, givingyouthepeaceofmindinknowingyourreportandpaymenthavebeenreceived.

Logontoourwebsiteatwww.tax.ok.gov.GiveQuickTaxatrywithyournextbusinesstaxfiling, because you didn’t go into business to file taxforms!

TMQ Tuick axBusiness Tax Filing System

Because You Didn’t Go into Business to File Tax Forms...

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When You Are Finished...

•Intheeventthatyouowetaxes,pleaseencloseacheckormoneyorderpayableto“OklahomaTaxCommission”. The taxpayer identification number and thetaxyearshouldbeonyourcheckormoneyorderforyourpaymenttobeproperlycredited.

•Whencomplete,makecopiesofallthedocumentsforyourrecordsanddonotencloseanyothertaxreportsorcorrespondenceinthisenvelope.

•Paymentsmayalsobemadeelectronically.Visitourwebsiteformoreinformation,www.tax.ok.gov

•Pleasemailtheoriginals,alongwithanypaymentdue,to:

Oklahoma Tax CommissionIncome Tax

PO Box 26800Oklahoma City, OK 73126-0800

Wondering What These Are?

Thisnewbarcode,locatednearthetopofeachpageoftheForm512-S,isfortheOklahomaTaxCommissiontouseinanewprocessingmethod.Thisbarcodecontains a page notation signifying the first pageofareturnsotheprocessingequip-mentknowstodocumentthatandthefol-lowingpagesasanewincometaxreturn.Pleasedonotwriteinthisarea.

Thebarcodealsotellsuswhereyourformoriginated.Forexample,ifyoudownloadaformfromtheweb,wecantellthatfromthebarcode.Softwareformsandpacketformshaveadifferentbarcodesignifyingtheirorigination.

ThisisanothertoolutilizedbytheOklaho-maTaxCommissiontoenableprocessingandprintingcosteffectiveness.

Need a form or

have a tax question after

hours?

Visit our website at www.tax.ok.gov

for all your tax needs 24 hours a day,

seven days a week.

15

How to Contact the Oklahoma Tax CommissionWhether you need a tax form,

have a question or need further information, there are many ways to reach us.

The Oklahoma Tax Commission is not required to give actual notice to taxpayers of changes in any state tax law.

Give Us a Call!TheOklahomaTax

Commissioncanbereachedat(405) 521-3160.

Thein-statetollfreenumberis(800) 522-8165.

Press“0”tospeaktoarepresentative. Alsoseethebox to the left for field office

phonenumbers.

Office Locations!Oklahoma City • (405) 521-3160

2501NorthLincolnBoulevard

Tulsa • (918) 581-2399440SouthHouston,5thFloor

Ardmore • (580) 226-4636301WestMain,Suite316

Lawton • (580) 248-84401602NWLawtonAve.,SuiteB

Visit Us on the Web!You’ll find a wealth

ofinformationonourweb-site,includingdownloadable

taxforms,answerstocommonquestions,and

online filing options for both incomeandbusinesstaxes!

www.tax.ok.gov

Oklahoma Tax CommissionIncome TaxP.O. Box 26800Oklahoma City, OK 73126-0800

Bulk RateU.S. Postage Paid

Oklahoma Tax Commission

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Universal Recycling Symbols

Courtesy of Heather Castles www.illustrationcastle.com

This State of Oklahoma income tax packet and form are printed on recycled papers.

Small BusinessCorporation Income Tax Return

For the year January 1 - December 31, 2007, or other taxable year beginning _______ ________, 2007 ending _____ __________, ______.

This form must be filed on or before the 15th day of the third month after the close of the taxable year. FO

RM512-s

B. Business Code Number

A. Federal I.D. Number

Amended Returns

Corporate Name:

Street Address:

City, State and Zip:

1a Nonresident share of income from Page 4, Part 5, column 7 . . . . . . 1b Nonresident share of deductions (see instructions) . . . . . . . . . . . . . . . . 1 Nonresident share of taxable income (line 1a minus line 1b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Tax: 6% of line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Investment/New Jobs Credit (enclose Form 506) . . . . . . . . . . . . . . . . 4 Gas Used in Manufacturing (see instructions and enclose schedule) . . . 5 Credit for Biomedical Research Contribution (see instructions) . . . . . 6 Other Credits (see instructions) (enclose Form 511CR) . . . . . . . . . 7 Total (add lines 3, 4, 5 and 6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Balance of tax due (line 2 less line 7, but not less than zero) . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Amount paid on 2007 estimate (i.e. Form(s) OW-8-ESC) . . . . . . . . .10 Amount paid with extension request . . . . . . . . . . . . . . . . . . . . . . . . .11 Okla. withholding (enclose Form 1099, 500-A, 500-B or other withholding statement) . . . . .12 Total credits (add lines 9, 10 and 11) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13 Overpayment (line 12 minus line 8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14 Amount of line 13 to be credited on 2008 estimated tax . . . . . . . . . . Line 15 instructions provide you with the opportunity to make a financial gift from your refund to a variety of Oklahoma organizations. Please place the line number of the organization from line 15 instructions in the oval below. If you give to more than one organization, put a “99” in the oval and attach a schedule showing how you would like your donation split.15 Donations from your refund (total from line 15 instructions) . .16 Total (add lines 14 and15) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17 Amount of line 13 to be refunded to you (line 13 minus line 16) . . . . . . . . . . . . . Refund18 Tax due (line 8 minus line 12) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Tax Due19 Underpayment of estimated tax interest (enclose Form OW-8-P) . . . . . . . . . . . . . . . . . . . . . 20 For delinquent payment: Add penalty of 5% $___ plus interest of 1.25% per month $___ . . . .21 Total tax, penalty and interest (add lines 18, 19 and 20) . . . . . . . . . . . . . . .Balance Due

12

78

1213

161718192021

3456

91011

14

15

If the Oklahoma Tax Commission may discuss this return with your tax preparer, please check here . . . . . Make check payable

to the Oklahoma Tax Commission

Under penalties of perjury, I declare that I have examined this return, including any accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct and complete. If prepared by person other than the taxpayer, this declaration is based on all information of which preparer has any knowledge.

Corporate Seal

signature of officer date

title

signature of preparer date

preparer’s address

0000

0000

0000

000000000000

00000000

000000

00

Date of Incorporation: Under the Laws of:

Telephone Number and Area Code:

C. Type of Business

If filing an amended return, place an “X” in the space provided, in the upper right hand corner of this form, next to the form number as shown here: “512-s__”x

Part 1: Tax Computation Schedule for Nonresident Shareholders Who Do Not File a Nonresident Shareholder Agreement (512-SA)

State of Oklahoma

Less

:

D. If this is a final return, please check here:

1a1b

00

area code and phone number

printed name of officer

The

Okl

ahom

a Ta

x C

omm

issi

on is

not

requ

ired

to g

ive

actu

al n

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e to

taxp

ayer

s of

cha

nges

in a

ny s

tate

tax

law.

Must enclose a copy of Federal return

2007

1 Ordinary income (loss) from trade or business (from above on Part 2, line 21) . 2 Net income (loss) from rental estate activity(ies) (enclose schedule) . . . . . . . . 3 Net income (loss) from other rental activity(ies) (enclose schedule) . . . . . . . . . 4 Interest income a: Interest on loans, notes, mortgages, bonds, etc. . . . . . . . . . . . . . . . . . . . . b: Interest on obligations of a state or political subdivision . . . . . . . . . . . . . . c: Interest on obligations of the United States . . . . . . . . . . . . . . . . . . . . . . . . d: Other interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Dividend income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Royalties . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Net short-term capital gain (loss) (Schedule D, 1120-S) . . . . . . . . . . . . . . . . . 8 Net long-term capital gain (loss) (Schedule D, 1120-S) . . . . . . . . . . . . . . . . . 9 Net gain (loss) under Section 1231 (other than due to casualty or theft) . . . . . 10 Other (enclose schedule) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Total income (add lines 1 through 10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

12 Section 179 deduction (enclose schedule) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Deductions related to portfolio income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15 Intangible drilling costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16 Other deductions authorized by law (enclose schedule) . . . . . . . . . . . . . . . . .17 Total Deductions (add lines 12 through 16) . . . . . . . . . . . . . . . . . . . . . . . . . . .

18 Net distributable income (line 11 minus line 17) . . . . . . . . . . . . . . . . . . . . . . . .

1

2

3

4a

4b

4c

4d

5

6

7

8

9

10

11

12

13

14

15

16

17

18

Deductions (lines 12 through 17)

Total (line 18)

Column AAs reported on Federal Return

Column BTotal applicable

to Oklahoma

Form 512-S - Page 2

000000

00

000000000000000000

000000000000

00

000000

0000

0000000000000000

000000000000

00

Income (lines 1 through 11)

1 a. Gross receipts or sales . . . . . .$___________ b. Minus returns and allowances $___________ = . . . . . . . . . . . . . . . . . . . . 2 Cost of goods sold and/or operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Gross profit (subtract line 2 from line 1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Net gain (loss) (Form 4797 Part II, line 17). . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Other income (loss) (enclose schedule) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Total income (loss) (add lines 3 through 5) . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Compensation of officers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Salaries and wages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Repairs and maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10 Bad debts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11 Rent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12 Taxes and licenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13 Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14 Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15 Depletion (do not deduct oil and gas depletion) . . . . . . . . . . . . . . . . . . . . . . . .16 Advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17 Pension, profit-sharing, etc. plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18 Employee benefit programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19 Other deductions (enclose schedule) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Total deductions (add lines 7 through 19) . . . . . . . . . . . . . . . . . . . . . . . . . .21 Ordinary Income (Loss) from trade or business: Subtract line 20 from line 6. Enter here and below on Part 3, line 1 . . . . . . .

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

0000000000000000000000000000000000000000

00

0000000000000000000000000000000000000000

00

Column AAs reported on Federal Return

Column BTotal applicable

to Oklahoma

Part 2: Ordinary Income from Trade or BusinessComplete Column A. Column B should be completed by S Corporations whose income is all within Okla-homa and/or by those whose income is partly within and partly without Oklahoma (not of a unitary nature). CAUTION: Include only trade or business income and expenses on lines 1a through 21 below.

If Federal and Oklahoma distributable net incomes are the same, please see instructions on page 6 of packet.

Part 3: Shareholders’ Pro Rata Share Items

Form 512-S - Page 3

Part 4:

Apportionment Formula

1 Net distributable income from Page 2, Part 3, Column A, line 18......................... 2 Add: (a) Taxes based on income ................................................................... (b) Unallowable deduction (enclose schedule) ..................................... (c) Other income (enclose schedule) ..................................................... (d) Total of lines 2a through 2c ............................................................... 3 Deduct all items separately allocated: (a) Interest on obligations of the United States ...................................... (b) _____________________________ ................................................ (c) _____________________________ ............................................... (d) Total of lines 3a through 3c ............................................................... (Note: Items listed in 2 and 3 above must be net amounts supported by schedules showing source, location, expenses, etc.) 4 Net apportionable income (line 1 plus line 2d, minus line 3d) .............................. 5 Oklahoma’s portion thereof __________________%, from schedule below ....... 6 Add items separately allocated to Oklahoma: (a) ____________________________________ ................................................ (b) ____________________________________ ............................................... (c) ____________________________________ ............................................... (d) ____________________________________ ............................................... (e) Total of lines 6a through 6d ............................................................................. 7 Oklahoma net distributable income (add lines 5 and 6e; enter here and on Page 2, Part 3, Column B, line 18) ...

Column ATotal WithinOklahoma

Column BTotal Within and

Without Oklahoma

A divided by BPercent Within

Oklahoma

1 Value of real and tangible personal property used in the unitary business (by averaging the values at the beginning and ending of the tax period). (a) Owned property (at original cost): (I) Inventories ......................................................... (II) Depreciable property.......................................... (III) Land ................................................................... (IV) Total of section “a” ............................................. (b) Rented property (capitalize at 8 times net rental paid) (c) Total of sections “a” and “b” above ........................... 2 (a) Payroll ...................................................................... (b) Less: Officers salaries ............................................. (c) Total (subtract officer’s salaries from payroll) ........... 3 Sales : (a) Sales delivered or shipped to Oklahoma purchasers: (I) Shipped from outside Oklahoma........................ (II) Shipped from within Oklahoma .......................... (b) Sales shipped from Oklahoma to: (I) The United States Government ......................... (II) Purchasers in a state or country where the ...... corporation is not taxable (i.e. under Public Law 86-272) . (c) Total of sections “a” and “b” ...................................... 4 If Revenue, Traffic Units or Miles Traveled is used rather than Sales, indicate here: 5 Total percent (sum of items 1, 2 and 3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Average percent (1/3 of total percent) (Carry to Part 4, line 5 above) . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$

$

$

$

$

$

%

%

%

%%

2a

2b

2c

3a

3b

3c

6a

6b

6c

6d

1

2d

3d

4

5

6e

7

Note: Enclose a complete copy of your Federal return.

Computation of Oklahoma Taxable Income of a Unitary Enterprise whose Income is Partly within and Partly without Oklahoma

Form 512-S - Page 4

1. Kind of Business: _______________________________________________________________________ 2. Is this return on cash or accrual basis?______________________________________________________3. Name of Business (if different from that of corporation): _________________________________________4. Corporation books are kept by: ____________________________________________________________5. Address at which books are kept: __________________________________________________________6. Date business began in Oklahoma: _________________________________________________________7. Did you make a return of information on Oklahoma Forms 500, 500-A or 500-B for the calendar year 2007? yes no

8. Were you notified this year of a change in your Federal taxable income for prior year(s)? yes no If you answered “yes” to #8, please list the year(s) here: ________________________________________9. Did you file amended returns for the years stated above? yes no

Enclose a copy of your federal return.

Part 5: Shareholders’ Pro Rata Share of Income

Name and address of shareholder

1 Check if

non-resident

2SSN or

FIN

3Number

of Shares

4Shareholders applicable %

Share of Oklahoma net distributable income

(Part 3, Column B, line 18 times Part 5, Column 4**)

6 87 11If nonresident agreement (Form 512-SA) is NOT attached, check box and enter the amount shown in column 6.

The S corporation will be taxed on the income reported in this column.

Shareholder’s portion of Okla-homa credit or

withholding

Total: Nonresident share of income to tax (add amounts shown in column 7). Enter here and on Page 1, Part 1, line 1a

**NOTE: The amount shown in Part 3, Column B, line 18, Oklahoma net distributable income, may not be the amount to be entered on the shareholder’s Oklahoma income tax return. This amount includes all allowable shareholder’s income, losses, and deductions. Some of these items may be limited on the Federal return. If these items are allowed in full or part on your Federal income tax return, they will be allowed to the same extent on your Oklahoma return.

5Net distributable income as reported on Federal return (Part 3, Column A, line

18, times Part 5, Column 4**)

Type of Credit or Withholding

10

(a)

(b)

(c)

(d)

(e)

(f)

(a)

(b)

(c)

(d)

(e)

(f)

(The Forms 500/500-A may be filed in lieu of the Federal Form 1099)(The Form 500-B is filed when there is a distribution to a nonresident shareholder)

9Allowable Oil and

Gas Depletion(Federal)

Allowable Oil andGas Depletion

(Oklahoma)

This agreement must be filed with the original Small Business Corporation Income Tax Return, Form 512-S, for each nonresident shareholder. Otherwise, the corporation shall be taxed on that part of the corporation’s net taxable income allocable to the shares of stock owned by the nonresident shareholder. Once the agreement has been signed, it is irrevocable for this taxable year.

Corporation Please Note:

Signature of Shareholder Executing Agreement Social Security Number or Federal Identification Number

Nonresident Shareholder AgreementI, , the undersigned, do agree that I

will file an Oklahoma Income Tax Return for the taxable year ending ,

and I will include, in Oklahoma adjusted gross income, my share of distributed or undis-

tributed taxable income or net operating loss of the corporation named below to the ex-

tent that such income, gain or loss, is at the corporate level, derived from sources within

Oklahoma. I further state that I made and executed this agreement for the

purpose of filing it with the following named corporation to be submitted with the

Oklahoma Small Business Corporation Income Tax Return, Form 512-S, filed by the

corporation for the taxable year indicated above.

Corporation

Street Address or Post Office Box

City State Zip

Federal Identification Number

Dated at this day of , .

512-saFO

RM 2

007

Includes Form 512-S and Form 512-SA - Oklahoma• Two 512-SA nonresident shareholder agreement...

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Transcript of Includes Form 512-S and Form 512-SA - Oklahoma• Two 512-SA nonresident shareholder agreement...