Last year was the first time I had set up an LLC to conduct business. Generated a little income, but nothing to write home about. Throughout the year, I had already paid the $800 franchise fee as well as a quarterly estimated tax payment.
While filing my taxes, I filled out the 1099-MISC section accordingly and stated the previous payment etc., but I forgot to go back and edit the Business Profit / Loss adjustment section in the State Taxes section. After I had finished submitting my taxes, I went back to revisit the section after looking up form 568 online.
When I went through it again, it generated a form 568 for me. After filling it out, the Federal / State refund didn't change at all. Do I need to amend my taxes and is there any way for TurboTax to 'resend' this form out? Or would I have to mail it out myself?
In regards to your question about CA Form 568:
No, you won't need to amend for Form 568. For single-member LLC's Form 568 can't be e-filed in any of the TurboTax product versions.
The State of California’s Franchise Tax Board will allow you a waiver for not e-filing, based on a few reasons, and due to technology constraints of the software you are using, you can request the e-file waiver.
Here is a link to request an e-file waiver CA Efile Waiver Request so you can paper file.
You will then print and mail Form 568 to this address:
FRANCHISE TAX BOARD
PO BOX 942857
SACRAMENTO CA 94257-0501
If you need to make other changes to your federal and/or state return after it has been e-filed and accepted, you will need to Amend the return(s).
To Amend your return in Turbo Tax Online follow these steps:
1. Sign in to your Turbo Tax Account
2. Scroll down to Your tax returns and documents and select Amend (change) 2019 return, then Amend using Turbo Tax Online.
3. Select the reason you are amending and Continue
4. Answer the questions about your Federal return, (there may be no changes) then begin amending your State return when it says "Lets get started on your state taxes...."
To Amend your return in Turbo Tax Desktop;
1. Open your tax file you need to amend and select Online and Check for Updates.
2. Go to the Federal Taxes tab (or the Personal Tab, if you are using Home & Business) and select the Other Tax Situations Tab.
3. Scroll down to Other Tax Forms and Select Start next to Amend a return.
4. Answer the appropriate questions for the State and Federal Returns.
[Edited KarenM90 2/23/2020 7:20 pm pst]
Would I still have to amend if there doesn't seem to be any impact on anything at all? All it did was ask me questions that essentially filled out the Form 568. Nothing else was impacted by the edits.
The Form 568 must still be filed with the California FTB, but you do not have to amend your CA income tax return just to file it. Print the pages and since no payment is due, send to:
FRANCHISE TAX BOARD
PO BOX 942857
SACRAMENTO CA 94257-0600
I can't seem to find form 568 on Turbo Tax Business for my SMLLC that's passed through as S-Corp. I do remember mailing items last year but can't remember if I mailed form 568. Anybody know where I can find this form or where I can find the information that's placed on line 1 of this form?
This will allow me to access Californias My Franchise Tax Board online to see if I complete it.
Thanks!
Yes, you need to file this but you do not need TurboTax Business for single member LLCs. TurboTax does let you e-file the rest of your return and allow you to mail the 568 separately.
As TurboTax Expert AndreaC1 found:
TurboTax Business only handles the multi-member LLC, not single-member. If you are using TurboTax Home & Business desktop version or Self-Employed online version, the Form 568 has to be printed and mailed.
Form 568 for single-member LLC's can't be e-filed in any of the TurboTax product versions.
The State of California’s Franchise Tax Board will allow you a waiver based on a few reasons, and due to technology constraints of the software you are using, you can request the e-file waiver.
Follow these steps to get Form 568 and file it directly with the Franchise Tax Board of California:
FRANCHISE TAX BOARD
PO BOX 942857
SACRAMENTO CA 94257-0501
Thank you so much, Kathryn for your quick response. Do you recommend the Self-employed online version even for my LLC S-Corp?
Thank you!
You're welcome!
No, you do not need self-employed; you can file using Premier. Even though it is a single member LLC, since you are filing it as an S-Corp, you would need to use your TurboTax Business program. This will do the following:
The S-Corp tax return filing will not generate any tax due, but it must be submitted by March 15. The tax is paid by you when reported on your individual tax return.
Click this link for help: Where do I enter a K-1 that I received?
TurboTax also seems to be telling me to print a form 3588 instead of a 3522 which I expected. I did pay the $800 annual fee online. Is this why I am told to print this?
And do I send both forms in the same envelope? Thanks
Unfortunately, the 3588 is not efiled with the individual tax return so you must mail a hard copy.
Since you did make the payment online, you do not need to send the 3522.
Sorry I'm a bit confused at the moment. As of right now, TurtoTax created the form 568 for me and it says I did not pay the $800 fee, which is where I'm assuming form 3522 comes into play.
What do I do with form 3588? Do I mail it separately? Do I stick it in the same envelope as when I send off form 568 or how would form 568 know that I've made my payment?
Apologies for the confusion, still pretty new at this. Appreciate any help given.
No. You do not need to submit Form 3522 by mail if you already paid online to the California Franchise Tax Board.
Regarding Form 568 for a single member LLC, it must be printed and mailed, also.
See TurboTax Expert AndreaC1's answer:
TurboTax Business only handles the multi-member LLC, not single-member. If you are using
TurboTax Home & Business desktop version or Self-Employed online version, the Form 568 has to be printed and mailed.
Form 568 for single-member LLC's can't be e-filed in any of the TurboTax product versions.
The State of California’s Franchise Tax Board will allow you a waiver based on a few reasons, and due to technology constraints of the software you are using, you can request the e-file waiver.
So go here California FTB Business Entity E-file Waiver Request and request an e-file waiver so that you can paper file this form since the software version you are using won't allow e-file for it.
You will then print and mail Form 568 to this address:
FRANCHISE TAX BOARD
PO BOX 942857
SACRAMENTO CA 94257-0501
So since I paid online, that means I do not need to submit Form 3588 either correct? Just want to confirm because on Form 568, there doesn't seem to be anywhere I can enter how much I paid online, unless I put the payment under Line 8 for overpayment from last year? Or would the FTB somehow know I had already paid the taxes/payments owed?
Appreciate all the help @KathrynG3. Sorry, just edited the last answer as I had jumped the gun and had one last question above.
Hey I think I’m in the same situation as you. I paid the $800 online but my 568 form that I am mailing in says I need to pay $800. I wasn’t sure what line to put that I already paid $800 so that it will show I don’t owe $800. Did you figure it out?
I would just attach a statement saying that the $800 was paid electronically when the tax return was e-filed.
Interesting. This is a first for me. I suppose if nobody else has any other ideas this would be the best approach and I'll deal with it when/if they reach out to me? At least I have a confirmation number of sorts from the FTB of my payment.
Thank you @DavidD66
You can send out the form to California or amend your tax return with the form included. Either way, the amended return will need to be mailed. I would suggest amending so that the form will be included in your Turbo Tax return. when you file next year, the form will be there if you need it.
Form 3588 is a payment voucher form. General Information:
"Use form FTB 3588, Payment Voucher for LLC e‑filed Returns, to pay the
total amount due on Form 568, Limited Liability Company Return of Income,
except for any unpaid limited liability company (LLC) annual tax which must
be paid using form FTB 3522, LLC Tax Voucher. Only use form FTB 3588 if
the LLC meets all of the following:
• Files its tax return electronically.
• Has a balance due.
• Remits payment with a check or money order.
The LLC fee must be estimated and paid by the 15th day of the 6th month
following the beginning of the taxable year. LLCs should use form FTB 3536,
Estimated Fee for LLCs, to remit the estimated fee. A penalty in the amount
of 10% of the underpayment of the estimated fee will apply if the estimated
LLC fee is underpaid. Get form FTB 3536 for more information."
Form 3522 is also a payment voucher form. General Information:
"Use form FTB 3522, LLC Tax Voucher, to pay the annual limited liability company
(LLC) tax of $800 for taxable year 2019. An LLC should use this voucher if any of
the following apply:
• The LLC has articles of organization accepted by the California Secretary of
State (SOS).
• The LLC has a certificate of registration issued by the SOS.
• The LLC is doing business in California."
What did you two end up doing?
I'm in the exact same boat as you two. Last year was my first year to have an LLC, I paid my fee online and assumed it was e-filed. When doing my taxes this year, I realize that form 568 had to be mailed. I don't remember seeing the message inside the app last year, but I probably glossed over it.
I tried calling, but it's impossible to get through with the Covid situation.
I was thinking to fill out the "Business e-file waiver" on the FTB website and specify the 2018 tax year in the date range. Then just mail in the 2018 year '568' form with a copy of my e-payment printout receipt.
I'd love to hear what you two did to sort this out.
@BentoBoxLover It was a while back, but I believe I printed out a Form 3588 Voucher and attached a note stating that I had paid the $800 electronically months prior and if there were any questions to please reach out to me. I got my return back stating, but for a different reason, but no mention about the Form 3588 so I'm assuming it went smoothly?
However, I still have not received my Federal return yet. It has been two months and its a bit concerning.
I filed e-file wavier, now how do I find and print filled out 568 Form from my already filled 2019 return?
I just completed my 2020 taxes and it appeared that Turbo Tax Home and Business let me E file form 568 for my single member LLC. Is this a function turbo tax added this year to do I still need to mail in a 568?