My California Form 568 states I owe $800. Does the filing of Form 3522 and payment of $800 satisfy this obligation or is another $800 due?

[TomYoung · Accepted solution]

All LLCs (not classified as a corporation) that are doing business in California, or file an article of organization or certificate of registration with the Secretary of State must file Form 568, Limited Liability Company Return of Income, pay the annual minimum franchise tax of $800, and LLC fee (if applicable). 

Form 3522 is the voucher you send in to ensure your account is properly credited at that state level.

Tom Young

[gljoy]

So to rephrase the answer a bit, AIUI, Form 3522 is the voucher that credits the LLC with the $800 that is owed per the Form 568. Any more tax due above the $800 is to be submitted with the Form 568.

Looking at Form 568 as completed by TTH&B 2016, I found the Tax Payments Smart Worksheet block where one can take credit for payment that was submitted with FTB 3522 and others. This changes Line 18 of FTB 568 to $0 for SMLLC that don't have additional taxes & fees for the year but TTH&B never asked this question in the interview sessions that I recall. Nothing about taking credit for this appears in any of the Step-by-Step views. This appears to be a bug in TTH&B when dealing with state requirements.

The failure to E-file FTB 568 with individual returns even though FTB requires this form to be submitted electronically is a deficiency in the TTH&B product. Woe befalls the user who doesn't review the forms directly to correct the entries before submitting them for E-file. This is why I no longer use the TurboTax Online product.

TT has screwed me over for 2014, 2015 and now 2016. Fortunately, after contacting California FTB today I won't owe penalties since I had manually submitted FTB 3522's for those years and only owe them the Form 568's.