Did not file form 568 for Year 2019. Did not pay Annual tax for year 2019 and year 2020. What to do now? And how to do it?

[Nguy6767]

If @DawnC could help:

I have been using TT premier for the past 4-5 years.
I created a single member LLC in CA on Sept 10th 2019. It did not make any money in 2019 and I mostly had expenses so I did not report any of it in my 2019 Federal or State taxes when I filed online using Turbotax premier. I did not even know what a form 568 was. I did not know I had to pay a 800$ annual tax>
Everything went smoothly. Got my refund and I have not gotten any notice from FTB. 

Fast forward to now February 2021. I find out that I have to pay an annual tax (which I did not pay for both years 2019 and 2020) and I find out I have to file form 568 for my single member LLC for the year 2019 and for the year 2020.  I cannot create an FTB account online as it requires at least one prior filing. So I chatted online via the chat service for people who dont have an FTB account. The person recommended me to pay online via the WebPay service and make 2 separate payments: one payment of at least $840 for the Sept 2019- Dec 31st 2019 period. And another payment of 800$ for the Year of 2020. Since we did not know how much penalties I had incurred I went ahead and made a payment of $900 today 02/24/21 for the first period 09/10/19-12/31/2019.  I have not made the second payment for the year 2020 yet due to not having enough cash.

My questions are:
A) Do I need to amend my 2019 Federal and State tax returns? Or do I just go ahead and file Form 568 for the year 2019 (which I found on the ftb.ca.gov website).
A1) If I have to amend my 2019 Federal and State tax returns, do you know if I can do it online? Can I use TT 2019 Home and Business? What do you think is the best way to proceed?

A2)  If I can just go ahead and file the 2019 form 568, what is the best way to proceed? Can I do it online via ftb.ca.gov? Or should I print and mail it? Would you recommend me to use TT Home and Business just to file that form 568?

B) Since I did not get any notice from FTB, How do I determine how much money I owe FTB? And how would you work it out into deductions for that year (would you try to count the $900 as deduction at all)?

C) for the year 2020: Can I use TT Home and Business for my single member LLC and will it allow me to file online? Or will I have to print and mail the form 568 separately?

Thank you so much for any help and any additional comment/suggestion you may have on my situation!

[DawnC]

If you have Home and Business 2019, you can use that to amend your 2019 return and add the 568.  But it may be easier to do it on the FTB website, but it does need to be filed.  And it can't be e-filed at this point unless the state website will do it, that I don't know.   You can ask for a waiver of e-filing 568 for the current year and the 2 previous years, here.  

The tax is deductible, the fee is not.  Neither is the late portion of the fee, so $800 (which is tax) would be deductible as a business expense in the year you paid it.  

Not sure if this applies to your 2019 situation, but I am including it and a link to more information on CA LCs.   LLCs are not subject to the annual tax and fee if both of the following apply:

• They did not conduct any business in California during the taxable year; and
• Their taxable year was 15 days or less. (refer to R&TC 17946).

For 2020, see this discussion from earlier today.  TurboTax will e-file your 568 as long as you don't have one of the exceptions listed on Page 1 - there is an image of the exceptions in that discussion.   Hope this helps!