I recently converted my sole proprietorship LLC in California to a S Corp. Each year I had to complete an FTB 3522 and pay the $800 mandatory fee. However, now that I have converted my LLC into an S -Corp and have chosen to be taxed as an S-Corp, it has created a multitude of problems with CA FTB. FTB notified me that my last payment (via 3522) was not matched with my entity S- Corp but it would be fixed. Unfortunately, it was not but follow-up contact with CA FTB advised that they only needed proof (letter) of the conversion granted by the IRS, which was sent shortly thereafter. Of major concern, besides all the misidentification of non-payment with the 3522 ($800) was the instructions by FTB employee that informed me I was no longer to submit payments with FTB 3522 because it was incorrect and should only use form 100ES, otherwise payments for this entity would not be matched correctly. Please explain if this instruction is correct and the difference with these two forms as I believe I should file both but do not want to keep CA FTB from misidentifying my payments.
