Chat with an FTB Representative

Changes to 2006 Form

2006 Updates to FTB 568

Revision Date: 04/25/2007

Revision Details: For tax year 2006, Form 568 expanded to five pages that moved questions J through Y, to Side 2. Whenever we made reference to Side 1, we should have also made reference to Side 2, however, reference to Side 2 was omitted. Reference to Schedule B was also added so that similar language appearing in more than one location was consistent.

The revisions are located on form side 2; instruction pages 8, 10, and 12; package X pages 389, 399, and 403.

  • Form 568, Side 2, Question U, number 2

It should read:

(2) If "yes," see instructions to complete Side 1, Side 2, and Side 4. Are credits or credits carryovers attributable to the disregarded entity?

Limited Liability Company Tax Booklet instructions

  • Instructions page 8, column 2, under the heading "Filing Requirements for Disregarded Entities", first paragraph.

It should read:

A SMLLC needs to complete Form 568, Side 1, Side 2, and Side 4 (Schedule K), LLC Worksheet, Schedule B, and pay the annual tax and LLC fee.

  • Instructions page 10, column 3, under the heading "LLC Income Worksheet Instructions", under the third note.

It should read:

LLCs that are disregarded entities compute the "Total Income" on the LLC worksheet. Use the applicable lines.

  • Instructions page 12, column 1, under the heading "Single Member LLC Information and Consent", third paragraph.

It should read:

If the single owner of the LLC signs the consent, complete Form 568, Side 1, Side 2, Schedule K, Schedule B, and pay the amount due.

The revised internet version is available for download.


2006 Updates to Form 568 Booklet

Revision Date: 03/14/2007

Revision Details: Current instruction includes lines 3a, 3b, and 3c in the summation on line 23a; however, lines 3a and 3b should not be part of the calculation as it duplicates the net income or net loss. Due to limited space on the return, sentences have been revised in order to fit.

  • Form 568, Side 4, Schedule K, Line 23a, flat; Form 568 Booklet, pages 22 and 28; and page 391 of the 2006 Package X.

The taxpayer reports gross receipts, deductions and net income on lines 3a, 3b, and line 3c respectively. Line 23a instructs taxpayers to combine lines 1 through 7; however, taxpayers should not include line 3a and 3b in the summation. If the taxpayer is reporting positive income from other rental activities and reports gross receipts, deductions, and net income on lines 3a, 3b, and 3c and in the summation on line 23a, the taxpayer's income is overstated, resulting in additional tax. If the taxpayer is reporting a loss from other rental activities and reports the loss, deductions and net loss on line 3a, 3b, and 3c and in the summation of line 23a, the taxpayer's loss is overstated, resulting in a lower tax liability.

It should read:

Total distributive income/payment items. Combine lines 1, 2, and 3c through 7b. From the result, subtract the sum of lines 8 through 12a and 16a.

The revised internet version is available for download.

Back to Tax Form Changes for 2006