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Level 2
posted Feb 20, 2020 10:06:23 PM

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

0 49 10402
1 Best answer
Expert Alumni
Feb 21, 2020 8:39:19 AM

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.

24 Replies
New Member
Feb 21, 2020 8:23:47 AM

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.

Expert Alumni
Feb 21, 2020 8:39:19 AM

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.

Level 1
Feb 21, 2020 8:51:52 AM

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?

Expert Alumni
Feb 21, 2020 9:29:20 AM

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.

Expert Alumni
Feb 21, 2020 9:56:59 AM

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.

New Member
Feb 24, 2020 1:36:57 PM

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

Expert Alumni
Feb 24, 2020 1:51:08 PM

@smedeiro

 

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

Level 2
Feb 27, 2020 1:15:46 PM

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.

Not applicable
Feb 29, 2020 1:37:30 AM

@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!

Expert Alumni
Mar 1, 2020 7:39:55 AM

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

Not applicable
Mar 1, 2020 10:59:46 AM

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

Expert Alumni
Mar 1, 2020 12:26:37 PM

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 Updates

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

@Pixelsage 

@neilh1 

@garys_lucyl 

@mrakeshm 

@sstax 

New Member
Mar 3, 2020 3:53:29 PM

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 

Returning Member
Mar 6, 2020 1:26:35 PM

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!!   

Level 3
Mar 6, 2020 4:55:19 PM

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?

 

Level 1
Mar 7, 2020 6:00:50 PM

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.

Level 2
Mar 7, 2020 7:47:42 PM

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.

Level 3
Mar 8, 2020 10:08:49 AM

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?

 

Level 2
Mar 8, 2020 10:13:44 AM

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

 

also this year did you file the waiver first?

thank you 

 

Level 3
Mar 8, 2020 10:17:23 AM

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.

New Member
Mar 9, 2020 2:35:49 PM

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.

Level 1
Mar 10, 2020 1:30:59 PM

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.

Level 3
Mar 13, 2020 9:06:02 PM

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!

 

Level 2
Mar 14, 2020 4:47:19 PM

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?