"Returns including one instance of Form 568 cannot be filed electronically at this time." How come?

[busepher]

I noticed this as well.  Is there a fix coming soon for this issue?  I definitely feel this is a software error as we've been able to file this form in the past for LLCs. 

Please let us know because if we have to file our LLCs by paper, it wouldn't be out of the question to request a refund.  It kind of doesn't make sense to advertise Home Business if we can't e-file for having a home business.

[BillM223 · Accepted solution]

This is not a TurboTax problem, it's a state of California problem.

There are two pieces of software involved in e-filing: (1) software by the tax company to send it, and (2) software by the state to receive it.

In this case, California had a number of issues this year with their software that receives e-filed returns. For example, CA does not accept Schedule Cs e-filed this year.

It's probably related, but CA does not accept the 568 as e-filed this year, either.

Please see this list of forms that California accepts for e-filing for 2019 for individual returns.

[PK2020]

I am having the same issues with not being able to file the CA tax return electronically because it includes form 568.  Historically I've mailed in form 568 and CA return was filed electronically, but this year Turbotax wants me to mail entire return.  Any idea if this will be fixed soon or if mailing in is the only option?

[BillM223]

Are you referring to a Single-member LLC? If so, this is reported on the federal return on Schedule C.

As I noted above, this year the State of California will not accept Schedule C by e-file, either.

If you have a Single-member LLC, this is the real problem. Possibly the TurboTax message could be updated to refer to both the 568 and Schedule C.

[BillM223]

I have just received word that the State of California is not accepting by e-file any individual returns with Schedules C, E, or F (business, rental, or farming).

Given this fact, there is nothing that TurboTax can do to make e-filing possible.

[smedeiro]

I've seen reasons to why this is not working as designed, but what is the solution? 

[BillM223]

@smedeiro

The solution is to print and mail your California return. The CA Franchise Tax Board doesn't allow any other solution.

[SLOGoing]

Sorry, I'm a little confused and I don't want to make a mistake.  If the reason we can't e-file our LLC taxes in California is because of the State of California, not Turbo Tax, then why does the state of California have this page on their tax information site: https://www.ftb.ca.gov/tax-pros/efile/efile-for-business.html

Seems like we are supposed to e-file, but TurboTax says we can't.  Just a few questions:

1. Does this say we are required to file electronically?
2. If we can't file because of a state of California issue, why does the last bit of text shown here from their site say it's mandatory?
3. If we can't e-file in California, why does California provide an e-file Return Authorization for LLC's using this file 2019-8453-llc, California e-file Return Authorization for Limited Liability Companies (FTB 8453-LLC)

Excerpt from the California tax site:  

Accepted forms

Forms you can e-file for business:

• California Corporation Franchise or Income Tax Return (Form 100)PDF Download
• California S Corporation Franchise or Income Tax Return (Form 100S)PDF Download
• California Corporation Franchise or Income Tax Return- Water's Edge, (Form 100W)PDF Download
• Amended Corporation Franchise or Income Tax Return (Form 100X)PDF Download
• California Exempt Organization Annual Information Return (Form 199)PDF Download
• Partnership Return of Income (Form 565)PDF Download
• Limited Liability Company Return of Income (Form 568)PDF Download
• Complete list of forms you can e-file

Mandatory e-file Requirement

California law requires business entities that prepare an original or amended return using tax preparation software to electronically file (e-file) their return to us.

[Anonymous]

@BillM223  Just to confirm:

1. We must file the entirety of our state return VIA mail (not just 568)

2. If this is the first year of business (i.e. never e-filed before), we do not need to request a wavier since everything is filed by mail?

3. We can still send the $800 franchise tax online

Thanks!

[ColeenD3]

Please see this answer from AndreaC.

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 Waiver 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

[Anonymous]

Okay, so I should e-file the rest of my tax return? Do you know if I can just paper file the whole thing?

[KathrynG3]

Yes, you could paper file the whole return. But, it does take 16 weeks rather than 21 days to process the return.

Please see this resource for deadline updates:

The Tax Deadline Delayed: What to know about Coronavirus COVID-19 and your Taxes and State Tax Updat...

[Edited 3/24/2020 | 11:01 AM PST]

@Pixelsage 

@neilh1 

@garys_lucyl 

@mrakeshm 

@sstax 

[vicrochoffman]

So after completing my return and reading this string I am thoroughly confused.  In past years I could e-file the State return, and only had to mail the form 568 to State of California.  Has this changed this year?  I get to the end of my return and it says I can not e-file ANY of my return now!

Thanks 

[hylai]

I have the same problem. paper mail is not a solution, but their lazy excuse to all the Turbotax customers.  16 weeks!! we talk about 4 months instead of 21 days!!