Turbotax gave wrong form and filing date

[simsteu-]

Will I get a penalty fine from CA FTB for using the wrong form for my annual minimum tax payment of $800?

At least I filed on time rather than using the due date listed by Turbotax. The form should be #3522 due on the 15th of the third month (3/16/20) for annual payers.  Not form 100-ES (for C-Corps) due on 4/15/20. The earlier filing date for S-Corps was changed as of 1/1/16

[DawnC]

Forms 100-ES are your corporate estimated tax payments for next year.  The annual income/franchise tax for C corporations is the greater of 8.84% of the corporation's net income or  $800 and is paid by filing Form 100.   The annual income/franchise tax for S corporations is the greater of 1.5% of the corporation's net income or  $800 and is paid by filing Form 100S.

Only LLCs (that have not elected to be taxed as a corporation) use Form 3522 to pay the annual tax.  If the LLC fails to pay its annual tax by the 15th day of the 4th month after the beginning of the taxable year (fiscal year filers) or April 15th (calendar year filers), a late payment penalty plus interest will be assessed for failure to pay the annual LLC tax by the due date. The penalty and interest will be computed from the due date of the tax to the date of payment.

Form 3522 is a form used by LLCs in California to pay a business's annual tax of $800.  All LLCs in the state are required to pay this annual tax to stay compliant and in good standing. When a new LLC is formed in California, it has four months from the date of its formation to pay this fee.

If a company has members who are not residents of California, it files Form FTB 3832.  An LLC in California uses Form 3522 if the following applies:

• The Secretary of State has accepted the LLC's Articles of Organization
• The company does business in the state
• The Secretary of State has issued a Certificate of Registration to the business

All companies that do business in California and have its Articles of Organization on file with the office of the Secretary of State must pay an $800 annual tax. This fee is paid each taxable year (see dates above for fiscal vs. calendar year filers) until a company files a Certificate of Cancellation of Registration.

[simsteu-]

I appreciate your time and effort to reply.  I was wrong on the due date for the filing.  The annual LLC tax is due on the 4th month. It was only the 100S income tax filing that was changed to become due one month earlier to the 3rd month of the S-corps tax year. 

However, I do not see the exception you describe for not using the form #3522 for making the annual payment.  It seems any LLC that has become a Califonia S-corp would meet the three criteria for using that form. The instructions also state "Do not use any other form for payment of the tax"

[DawnC]

Use form FTB 3586, Payment Voucher for Corporations and Exempt Organizations e‑filed Returns, to pay the tax due if the corporation or exempt organization meets all of the following:

• Files its tax return electronically

• Has a balance due

• Remits payment with a check or money order

• Is not required to remit payment electronically

If a limited liability company (LLC) elects to be taxed as a corporation for federal tax purposes, the LLC must file form FTB 3586 and enter the California corporation number, Federal employer identification number (FEIN), and California Secretary of State (CA SOS) file number, if applicable, in the space provided.

If your LLC has elected to be taxed as an S-corporation, use Form 100S to file your annual tax which includes the franchise tax.  See line 21 of that Form.  If you need to remit payment based on your filing of Form 100S, use FTB 3586 to remit the payment.  

If your LLC has not elected to be taxed as a corporation, you would use Form 3522 to remit the $800 franchise tax. 

Here is a discussion regarding a similar situation to what you are describing. 

[simsteu-]

Thanks for the education! The state forms and the Publication 1060 were not as clear as your comments. I'll remit the $800 minimum Franchise tax using Form 100-ES.

The lingering question was on the e-file question which asks for your7-digit CA corporation number which an LLC does not have. Yet selecting LLC as the entity type to allow continuing leads to different forms and responses further on. What is the best answer to proceed?

[DawnC]

You can use this website to help you find your CA corporation number. 

If you have not elected to be taxed as a corporation and do not have a corporation number from the State of California, you probably should be filing an LLC return (Form 568/3522) and not a corporate return (100S).    If you are an S-corp., you should be able to find your corporation number from the website above and use that to file your corporate tax return.   The fee is paid on Form 3586.

100-ES vouchers are for (corporate) estimated tax payments for 2020.   Based on the forms that are generating, you have filed as a corporation.  If you are not a corporation, go back through TurboTax Business and file a non-corporate return.  

[Star Global]

For 2021, I gave bank information in Turbo Tax (Business) before filing electronically. The filing has been accepted, but the $800 payment to CA has not been made as yet. Is this not something TurboTax or FTB will initiate?

I can pay at FTB, if this is not already going to get paid.

[Cynthiad66]

If you have this on the return to pay the $800.00, please wait to allow the process to work.  You might end up duplicating your payment.  IRS will initiate the payment when they process the return.

There are lots of delays at the processing centers right now, so the fact that your return has been accepted by the IRS only means that "accepted".  I am sorry for any problems the delays might be causing, but it will happen.