CA LLC Taxes experts advise wanted

[wanaberetiree]

Hi all

I know many tax experts are here, so here is my dilemma.

I still do an LLC (California) that brings ~0-20K in income.

All of a sudden I got a letter from the California Franchise Board - Demand to file limited liability company tax returns

What do they want and what I need to provide?

Thx

 

[cathy63]

Here's the FTB's page on taxation of LLCs: https://www.ftb.ca.gov/file/business/types/limited-liability-company/index.html

Looks to me like the minimum tax is $800 for every year after the first one. You're also supposed to file form CA 568 for the corporation every year, just like you file a CA 540 for yourself.

I would say that you need to go back and figure your corporate taxes for each year and pay them along with any penalties. This is complicated. Contact a professional bookkeeper or accountant who does taxes for California corporations.

 

[wanaberetiree]

Here's the FTB's page on taxation of LLCs: https://www.ftb.ca.gov/file/business/types/limited-liability-company/index.html

Looks to me like the minimum tax is $800 for every year after the first one. You're also supposed to file form CA 568 for the corporation every year, just like you file a CA 540 for yourself.

I would say that you need to go back and figure your corporate taxes for each year and pay them along with any penalties. This is complicated. Contact a professional bookkeeper or accountant who does taxes for California corporations.

I verified that I did do the form 568 and paid $800

WTF?

 

[cathy63]

OK, then if you do have your past returns it should be simple enough to provide them. The letter says they're missing the return for 2019, so that's the one you should send, along with any proof of payment you have and a cover letter explaining that you did file it back in 2020. The mailing instructions are in the last paragraph.

I'd also suggest calling the number at the bottom of the letter and talking to someone first. Just to verify that the only return they're missing is the one for tax year 2019 and that's what they want you to send in.

 

[wanaberetiree]

OK, then if you do have your past returns it should be simple enough to provide them. The letter says they're missing the return for 2019, so that's the one you should send, along with any proof of payment you have and a cover letter explaining that you did file it back in 2020. The mailing instructions are in the last paragraph.

I'd also suggest calling the number at the bottom of the letter and talking to someone first. Just to verify that the only return they're missing is the one for tax year 2019 and that's what they want you to send in.

Thx!

Calling them is almost impossible, 2-3 h wait time!

Love California!