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

[sstax]

I'm unable to file BOTH my federal and CA tax return.  Do any of you have trouble e-filing the Federal return as well due to the 568 form issue for single member LLC?

[GWC LLC]

I am having the same issue.

Looks like there is no solution by to file everything by mail.

This is a major major oversight by Turbo Tax (yes California has complicated the situation), there is absolutely no way that one mail in form should force us to submit our entire return via mail when the software clearly promises all returns can be Efiled.

This is a very shady business practice, it's been 5 years since I last used TurboTax - now I remember why.

I am livid.

[mrakeshm]

I am seeing the same issue.  So what is the next step?

1) Should I file Federal and then 

2) sign the state waiver

3) mail the state?

Please confirm

Very Annoying ...

==

We Won't Be Able to E-file Your Return

Why? Well, it looks like you have a tax situation in the California return that makes it ineligible for e-filing. Reason for e-file ineligibility:

Returns including one instance of Form 568 cannot be filed electronically at this time.

TurboTax does not support this information to be filed electronically.   The good news is you can still print your California return and file it by mail.

[sstax]

Yes, that's correct.  In my case,  I wasn't able to e-file my Federal as well and I was told by the support staff to send everything by mail.  Let me know if you are able to at least e-file the Federal?

[mrakeshm]

@sstax What did you do last year, did you mail 568?

also this year did you file the waiver first?

thank you 

[sstax]

Last year, I was able to e-file my Federal and CA forms online.  I mailed the 568 paper form separately.

This is the message I get in Turbotax regarding the waiver.  Looks like it needs to be submitted within 15 days of filing your return.

Don't forget to request a waiver from the Franchise Tax Board to file your Form 568 by mail. The waiver must be requested within 15 days of filing your form.

If you haven't already printed the forms and vouchers you need, your printed California state tax return will include a completed Form 568 for each reported SMLLC and all required payment vouchers. Separate these and follow the filing or payment instructions on each document.

[srobscott]

Where did this information regarding CA not accepting forms 568 or Sched C come from? It is not obvious from looking at the list of returns CA will accept.

[GWC LLC]

Was the support staff at all apologetic that you had to file everything by mail?

I am hoping TurboTax will address this issue so I can at least file my federal return electronically.

I would like a refund from TurboTax for extreme inconvenience this represents.

Not a satisfied customer.

[sstax]

I got a response from Intuit and they have fixed the issue.  I'm now able to file both my federal and CA state returns electronically without any issues.  Thank you Intuit for your quick resolution on this issue!

[mattishere]

I was able to submit today both fed and CA State while I had a 568 form associated with my state return. Does the issue being fixed mean both were submitted or was it only the state form and I still need to mail in the 568 form?

[sstax]

You still need to mail the 568 form by paper mail.

[mrakeshm]

Good news folks, i waited few weeks and tried filing again and was able to e-file both.

May be someone fixed the issue...?

[garys_lucyl]

I just opened my tax return and applied all the updates. When I run the error check, the error is no longer there!  Haven't filed yet, but it does look like they have fixed this issue. Yippee!

[neilh1]

I have an SMLLC.  Form 568 is part of my 2019 CA state tax return.  When I was filling-out form 568 in TurboTax a few weeks ago, it said I would have to request a waver and file a paper version of form 568.  I did not file at that time.

Yesterday, I reviewed my return and the form 568 message did not show-up.  So I e-filed both federal and CA state tax returns.  There were no error messages and I got the confirmations that both e-fillings were accepted by fed and state.

So hopefully this means that this issue is fixed?  However, I am still concerned that something is not right.

Can anyone confirm that everything is good now and that we don't still need  to send in a paper 568.

Thanks

[garys_lucyl]

I cannot really confirm as I have not filed yet... but when I first edited my rental income as being owned by a SMLLC there was a message that said good news, this year if you have 1 SMLCC then form 568 can be electronically filed. So I was very happy to see that.  Then I subsequently got to the situation where the return couldn't be filed at all due the error message in this thread.  The last smart check no longer shows that error for my return.   In prior years, the filing instructions at the front of the CA return made it very clear it had to be mailed.  There is a section called Other Forms to Mail and my 2018 instructions indicated to mail form 568.   I suggest you look at page 1 of the filing instructions on the CA return.