Turbo Tax Home and Business 2024 will not efile California Form 568

[dfornyay]

I wanted to verify that the above Turbo Tax Home and Business will not efile Form 568 for a single member LLC.  Is this true?

[Vanessa A]

No, that is not true.  TurboTax DOES support the e-filing of CA form 568 for your SMLLC.

Tax form availability

[dfornyay]

If the SMLLC has Depreciation on 3885L (which in my case it does), Turbo Tax has indicated in my error check that it will not efile the 568.  Is this true or is this a glitch in Turbo Tax? TT gives 9 reasons on my error check of why it will not efile the return and depreciation is one of them.   It is fairly typical for a company to have depreciation expense so I do not understand why TT would not be able to efile.   This is my first year doing the 568, previously it was filed by a tax firm who was able to file it electronically.  I have a screenshot of the prompt in TT but I don't see a way to upload it here to show.

Thank you for your response.

[MonikaK1]

I have not heard of this particular error before. TurboTax Home & Business is designed to create only one Form 568 for a single member LLC.

Are you able to print the Form 568? 

Form 568 must be filed by every LLC that is not taxable as a corporation if any of the following apply:

• The LLC is doing business in California.
• The LLC is organized in California.
• The LLC is organized in another state or foreign country, but registered with the California SOS.
• The LLC has income from California sources.

Form 568 can either be e-filed or mailed to:

Franchise Tax Board

PO Box 942857

Sacramento, CA 94257-0501

In order for us to troubleshoot this issue, you can send us a “diagnostic” file that has your “numbers” but not your personal information. If you would like to do this, here are the instructions for TurboTax Desktop users:

1. From the black bar at the top of your screen, select Online
2. Click Send Tax File to Agent
3. Click Send on the message that pops up
4. TurboTax will create a "sanitized" copy of your return information with no personal info
5. Post the 7-digit token number here in this thread

We will then be able to review your file to see what you are seeing, and we can determine what is going on in your return and provide you with a suggested resolution.

[luciafjq]

i have the same issue. 

my token is 

[removed]-36203746

and my turbo tax home & business did not generate 3885-l together with form 568.

how can i generate 3885-l, and is there anyway i can efile my form 568 with 3885-l?

thanks

[MonikaK1]

Form 568 can't be submitted with your 540 via e-file in certain situations. I found that other tax software has the same issue. The situations in which it must be printed and mailed are shown on the form in TurboTax. 

I looked at Form 568 using Forms Mode in a Desktop version of TurboTax (thank you @luciafjq for sharing your sanitized data file). See screenshot below:

Apply for a waiver at this California webpage.

The 2025 $800 annual tax is due on or before the 15th day of the 4th month after the beginning of the 2025 taxable year (fiscal year) or April 15, 2024 (calendar year). The payment is sent with form FTB 3522. Do not mail the $800 annual tax with Form 568. When the due date falls on a weekend or holiday, the deadline to file and pay without penalty is extended to the next business day.

@luciafjq 

@dfornyay 

[guywong]

I don't understand, why a Calif single member LLC 568 form would need to include a Form 3885-L for depreciation?  Don't the SmLLC owner report depreciation expense on his/her Form 540 Schedule C?  I thought the 568 was only filed to report the LLC tax and fees as well as the total income from Schedule IW.

[luciafjq]

thanks MonikaK1，

So what I need to do is to apply for the waiver and mail the hard copy form 568 together with  3885l?

But the issue is I can not print out form 568(When I try to print, it's blank. though inside TT, it will show). And there is no 3885l generated. Do I need to download and fill it manually?

Thanks.

[PatriciaV]

If you are unable to e-file CA Form 568, apply for the waiver and mail in a hard copy. Form 3885L does not need to be included in that filing.

Try saving the form as a PDF first, then print the PDF.

@luciafjq 

@guywong 

[dfornyay]

Form 568 specifically states on schedule B line 17a to attach Form 3885L if there is depreciation.  Why does Turbo Tax not generate this form, especially if depreciation is one of the reasons it will not efile the return?  Is there some difference with an SMLLC that does not require the 3885L? The tax firm that did my 568 last year attached a form 3885L to the return.  Did something change in 2024?  I have done some research and can't find any language in FTB instructions that says the 3885L does not have to be attached.  I did find a pdf fill-in form at tax-brackets.org so I completed that form myself and I will attach it to the 568 mail in, so this problem is resolved for me but I thought it good to let you know that I think not attaching the 3885L might be an issue with the FTB.

Thanks.

[RandomUserName4]

@MonikaK1 @PatriciaV 

I don't have any of the situations described in the list and yet TT still refuses to efile my 568. This has been going on for years. Will it ever be fixed?