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Level 2

Solved

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

Forum|Forum|6 years ago
February 21, 2020
6 replies
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TurboTax Live Self Employed

Best answer by BillM223

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.

busepher

Level 2

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.

BillM223Answer

Level 15

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.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

Rich Ambos

Level 2

Will we be able to use TurboTax to efile California Form 568 for tax year 2020?

JohnW152

Level 15

No, you can't e-file California Form 568 in TurboTax for tax year 2020.

Please see the California Franchise Tax Board's Forms you can e-file for individuals page and TurboTax's State forms availability table for TurboTax individual (personal) tax products page for more information.

LLCs classified as a aartnership file Form 568, Limited Liability Company Return of Income.

PK2020

Level 2

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

Level 15

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.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

SLOGoing

Level 2

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:

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.

ColeenD3

Level 15

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?

username100

Level 2

Update from 03/31/2020, in case it helps anyone

- SMLLC, I was able to file Federal and CA directly via Turbotax Home and Office.

- However, on the final document that you can print out for record under "Electronic Filing Instructions for your 2019 California Tax Return", it says the following

- I talked to ftb.ca.gov, and the agent told me that

a) it is required to e-file 568 (unless you request a waiver), and

b) to e-file you need to find a qualified tax provider or software (apparently Turbotax is not one)

- I signed up CalFile as recommended on the state website , but it's only for individual (not for business), looks like there are several software that will allow you to e-file 568 which probably cost money

https://www.ftb.ca.gov/tax-pros/efile/appr[product key removed]are.html

- I just sent in the Business Entity e-file Waiver Request and see if I will get approved to be able to mail my 568.

Dino_

Level 2

I have just talked to TuboTax support and it turns out I have to mail physical copy of the 568 form, and also get the online waiver.

The confusing part had been that the tax return "printout" PDF didn't include instructions (as I hadn't clicked on the right buttons.) So, went in again (by the trick of "Add State"), then went to the Tools / Print Center and printed the PDF with instructions this time. And indeed, there are instructions for mailing in the form 568.

mrakeshm

Level 2

@Dino_ @sstax @Pixelsage @neilh1

and others.

I am unable to see this information in my return. (I have already filed it).

Are you folks referring to getting the print out "before" filing the return and you received instructions?

I have no way to do what Dino suggested..

I am getting the tax returns and it does not mention the instructions everyone is talking about.

Please educate, thanks

miosgit

Level 2

Why TurboTax tells me to wait for Form 568, p1-2 to be ready if I'm failing schedule C as a sole proprietorship and not LLC for 2020?

JotikaT2

Employee Tax Expert

You will need to review your input in the state section of the program to ensure you have not selected that the business is a single member LLC.

Select State in the black panel on the left hand side of your screen when logged into TurboTax.
This will take you to a screen titled Let's get your state taxes done right. Click continue on this screen.
You will see the following screen titled Status of your state returns. Select Edit to the right of California.

Edit state

Proceed through the screens until you see the state asking questions about your business. When you see the screen titled Business Summary, be sure to select Edit so you can correct the input here.

Single member LLC

The following screen will ask you if your business is owned by a single member LLC?. Be sure to select No to remove the LLC classification on your state tax return.

Single Member clarification question

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marinabaybakery

Level 2

How do I even get Form 568? It hasn't been included in any of my returns for the past two years and I don't see it in my current return either? When I open up forms on the desktop version and type in 568 in the search, nothing comes up. WTF?

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

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