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Changes to 2001 Forms

2001 Updates to Form 100W

Revision Date: 04/28/2004

Revision Details:Form 100W - California Corporation Franchise or Income Tax Form - Water's Edge Filers - Form 100W, Page 21, Side 1; Schedule H (100W) Page 25; Instructions for Schedule H (100W) Page 26, and Package X Page 167, 191, & 192.

The Internet versions of the form and instruction have been revised. These revisions are due to the California Court of Appeal ruling that found the R&TC Section 24402 deduction unconstitutional, the form and instructions have been revised to reflect the court decision rules. These changes may increase or decrease the corporate tax liabilities.

  • Form 100W, Page 21, Side 1, line 11b

It should read:

11b Other dividend deduction...............

  • Schedule H (100W), Page 25, all of Part II

It should read:

Shading Part II of Schedule H (100W) due to Farmer Bros. Co. v. Franchise Tax Board court decision

  • Schedule H (100W), Page 25, all of Part III

It should read:

Shading Part III of Schedule H (100W) due to Ceridian v. Franchise Tax Board court decision

  • Schedule H (100W) Instructions, Page 28, column1, add What's Changed

It should read:

Forms, Schedules, and instructions impacted by the court decision in Farmer Bros. Co. v. Franchise Tax Board (2003) have been revised to disallow any deduction taken based on R&TC Section 24402. In Farmer Bros. Col. v. Franchise Tax Board (2003) 108 Cal App 4th, 134 Cal Rptr. 2nd 390, the California Court of Appeal found that the R&TC Section 24402 deductible dividend provision discriminated against interstate commerce in violation of the Commerce Clause of the United States Constitution. R&TC Section 24402 provided for a deduction to the extent that the dividend payer was taxable in California. A statute that is held to be unconstitutional is invalid and unenforceable. Therefore, the deduction is not available.

Forms and instructions impacted by the court decision in Ceridian v. Franchise Tax Board (2000) have been revised to disallow any deductions taken based on R&TC Section 24410. In Ceridian v. Franchise Tax Board (2000) 85 Cal.App.4th 875, the Court of Appeal has determined that R&TC Section 24410, which provides a limited deduction for dividends received from an insurance company, is unconstitutional. As such, the statute is invalid and unenforceable. Therefore, the deduction is not available.

  • Instructions for Schedule H (100W), Part II, are deleted in full.
  • Instructions for Schedule H (100W), Part III, are deleted in full.
  • Instructions for Schedule H (100W), Part II and Part III

It should read:

Part II has been deleted due to the Farmer Bros. Co. v. Franchise Tax Board decision (2003). See What's Changed paragraph above.

Part III has been deleted due to the Ceridian v. Franchise Tax Board decision (2000). See What's Changed paragraph above.

  • Instructions for Schedule H (100W), Part 1V, column 3:

It should read:

In no event will an R&TC Section 24411 deduction be allowed with respect to a dividend which was eliminated under R&TC Section 25106.

A revised copy is available to download - April 28, 2004.

Back to Tax Form Changes for 2001