California Business e-file Program - Frequently Asked Questions

  1. What is e-file for Business returns?
  2. Do I need to enroll in the California Business e-file Program?
  3. Do I need to re-enroll if I am currently an ERO for Individual e-file?
  4. Is Business e-file Mandatory?
  5. What are the benefits of Business e-file?
  6. Can I e-file all my business returns?
  7. Can a business e-file 52-53 week, short period, or final tax year returns?
  8. Will FTB require that the federal return accompany the state return?
  9. What are the signature requirements for Business e-file?
  10. Will I notice a difference in my transmissions of business tax returns?
  11. Where can I get software to e-file business returns?
  12. Can I transmit business returns directly to FTB?
  13. Do I need to complete PATS testing if I will transmit business returns directly to FTB?
  14. If our corporation develops our own tax preparation software, does it need to be approved by FTB?
  15. Will FTB include more business forms in 2013?
  16. How can I get the latest e-file information?

 

1. What is e-file for Business returns?

Business e-file is filing business tax returns electronically using a computer, software, and web-based communication. You can e-file Forms 100, 100S, 100W, 100X (Corporations), Form 199 (Exempt Organization), Form 565 (Partnerships), and Form 568 (Limited Liability Companies).

2. Do I need to enroll in the California Business e-file Program?

No. Separate e-file registration is not required for Electronic Return Originators (EROs) to participate in the California e-file Program. Get more information.

3. Do I need to re-enroll if I am currently an ERO for Individual e-file?

No. Current individual e-file participants are automatically enrolled in the Business e-file Program.

4. Is Business e-file Mandatory?

No. California does not mandate businesses to e-file. However, the IRS requires certain corporations to e-file. For more information about the IRS mandate, see Corporations required to e-file.

5. What are the benefits of Business e-file?

Business e-file benefits include:

  • Proof of receipt - Generally within 24 to 48 hours you receive acknowledgement that FTB has accepted your client's return for further processing.
  • Accurate returns - The error rate for paper returns is approximately 10 percent, while e-file returns have an error rate of less than 1 percent.
  • Opportunity to correct errors - The e-file program checks returns for common error conditions before we process them. This provides you the opportunity to correct the return and avoid a notice.
  • Business rule explanations - Explanations that pinpoint the location of the error in the return.
  • Year-round return filing - Because many business returns are filed using a fiscal year calendar, the Business e-file system is available year-round.
  • Safe - We use the latest technologies to ensure the security and privacy of all taxpayer information. Our Internet filing service uses the industry standard 128-bit Secure Socket Layer encryption.

6. Can I e-file all my business returns?

We accept FTB Forms 100, 100S, 100W, and 100X including Combined Reporting, as well as the FTB Form 199, 565, and 568 and more commonly used forms and schedules. See our complete list of acceptable forms and schedules.

7. Can a business e-file 52-53 week, short period, or final year returns?

Yes. Business e-file will accept 52-53 week, short period, and final FTB Form 199, 100, 100S, 100W, Combined Reports, 565, and 568 returns.

8. Will FTB require that the federal return accompany the state return?

Generally, we require that the federal return accompany the state return. We do not require, however, that the IRS first accept the federal return. Your software provider will give you instructions on how they transmit the federal return.

9. What are the signature requirements for Business e-file?

Unlike the IRS, FTB does not offer an electronic signature option for our Business e-file Program. The business taxpayer, ERO, and paid preparer must sign the California e-file Return Authorization form (FTB 8453-C, FTB 8453-P , FTB 8453-LLC or FTB 8453-EO) prior to the transmission of the e-file return. This form may be retained by the preparer or business taxpayer according to the rules of our program or scanned and included as an attachment to the business e-file return. Do not mail this form to FTB.

10. Will I notice a difference in my transmissions of business tax returns?

No. The difference should be transparent to you. You will continue to complete and send returns to your software provider according to their instructions.

11. Where can I get software to e-file business returns?

We provide a listing of approved e-file software developers on our Website. You can also contact our e-file Customer Service at 916.845.0353.

12. Can I transmit business returns directly to FTB?

It depends on the software you use. Contact your software company to see if they provide software that will allow you to transmit directly to us.

13. Do I need to complete PATS testing if I transmit business returns directly to FTB?

Yes. To transmit business returns directly to FTB you must complete PATS testing. For more information about PATS testing, review FTB Pub. 1436X, 2013 Test Package for e-file of California Business, Fiduciary, and Individual Tax Returns.

14. If our corporation develops our own tax preparation software, does it need to be approved by FTB?

Yes. If you develop and use substitute, paperless Schedule K-1 (565 and 568), and reproduced tax forms, you must complete and submit Form 1096, Agreement to Comply with FTB Pub. 1098 and conform to Pub. 1098, Annual Requirements and Specifications for the Development and Use of Substitute, Scannable, and Reproduced Tax Forms.

15. Will FTB include more business forms for the 2013 tax year?

We are exploring adding more forms to our program each year. Stay tuned for the latest information on what's new for business e-file by joining our Subscription Services (See #16 below).

16. How can I get the latest e-file Information?

You can join our Subscription Services. Get the latest information on Business e-file, Individual e-file, e-Services, seminars, and processing developments important to tax professionals.