The California 3539 form is used by corporations and exempt organizations to request an automatic extension for filing their California tax returns. This form is essential for those who cannot meet the original filing deadline and owe taxes for the taxable year. To ensure compliance and avoid penalties, it is important to fill out the form accurately and submit it on time.
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The California Form 3539 serves as an essential tool for corporations and exempt organizations seeking an automatic extension for filing their tax returns. This form is particularly relevant for those who find themselves unable to meet the original due date for their California tax return, which typically falls on March 15 for calendar year corporations and May 17 for calendar year exempt organizations. By submitting Form 3539, eligible entities can secure a seven-month extension to file their returns, provided they meet specific criteria, including the requirement to pay any owed taxes by the original due date. It is important to note that merely filing for an extension does not extend the time to pay taxes; 100% of the tax liability must be settled by the original deadline to avoid penalties and interest. Additionally, the form outlines the responsibilities for electronic funds transfer (EFT) compliance, detailing which organizations must remit payments electronically to avoid penalties. For those part of a combined unitary group, the filing process is slightly different, as only the designated key corporation needs to submit Form 3539, while ensuring that the minimum franchise tax for each member is accounted for. Understanding the nuances of Form 3539 is crucial for maintaining compliance and avoiding potential penalties related to late payments or filings.
Instructions for Form FTB 3539
Automatic Extension for Corporations and Exempt Organizations
General Information
year exempt organizations) following the close of the taxable
year or March 15, 2004 (calendar year corporations), or
Use form FTB 3539 only if:
May 17, 2004 (calendar year exempt organizations).
• You cannot file your 2003 California (CA) return by the
Employees’ trusts and IRAs must pay 100% of the tax liability
by the 15th day of the 4th month after the end of the taxable
original due date; and
year.
• You owe tax for the 2003 taxable year.
Use the worksheet on the following page to determine if you
Save the completed worksheet as a permanent part of the
corporation’s or exempt organization’s tax records along with
owe tax.
a copy of the CA tax return.
• If you do not owe tax, there is nothing to file at this time
and no need to complete or mail this voucher.
Electronic Funds Transfer (EFT)
• If you owe tax, complete the voucher and mail it along
with your check or money order to the Franchise Tax
Corporations or exempt organizations that meet certain
Board (FTB) by the original due date of the CA tax return.
requirements must remit all of their payments through EFT
If a corporation, including real estate investment trusts
rather than by paper checks to avoid the EFT penalty.
(REITs), real estate mortgage investment conduits (REMICs),
Corporations or exempt organizations that remit an estimated
regulated investment companies (RICs), limited liability
tax payment or extension payment in excess of $20,000 or
companies (LLCs) electing to be treated as corporations, or
that have a total tax liability in excess of $80,000 must remit
an exempt organization in good standing, cannot file its CA
all of their payments through EFT. The FTB will notify
tax return by the original due date, a seven month extension
corporations or exempt organizations that are subject to this
to file will be allowed automatically without submitting a
requirement. Those that do not meet these requirements and
written request. To qualify for the automatic extension, the
wish to participate on a voluntary basis may do so. If you are
corporation or exempt organization must file its CA tax return
an EFT taxpayer, complete the worksheet for your records. Do
by the extended due date and its powers, rights, and
Not Send The Payment Voucher. For more information, go to
privileges must not be suspended or forfeited by the FTB or
our Website at www.ftb.ca.gov, call (916) 845-4025, or get
the California Secretary of State (SOS) as of the original due
FTB Pub. 3817, Electronic Funds Transfer Program Informa-
date.
tion Guide.
The extended due date for corporations is the 15th day of the
Where to File
10th month following the close of the taxable year (fiscal year
filers) or October 15, 2004 (calendar year filers). The
If tax is due and the corporation or exempt organization is not
extended due date for exempt organizations filing Form 199
or Form 109 is the 15th day of the 12th month following the
required to use EFT, attach a check or money order for the tax
close of the taxable year (fiscal year filers) or December 15,
due to form FTB 3539. Write the California corporation
2004 (calendar year filers).
number or FEIN and 2003 FTB 3539 on the check or money
The extended due date for an employee’s trust defined in IRC
order. Mail only the voucher portion with the payment to:
FRANCHISE TAX BOARD
Section 401(a) and an IRA filing Form 109 is the 15th day of
the 11th month after the end of the taxable year (fiscal year
PO BOX 942857
filers) or November 15, 2004 (calendar year filers).
SACRAMENTO CA 94257-0551
Note: An extension of time to file the CA tax return is not an
Private Mailbox (PMB) Number
extension of time to pay the tax.
If the corporation or exempt organization leases a private
To avoid late payment penalties and interest, 100% of the tax
mailbox (PMB) from a private business rather than a PO box
liability must be paid by the 15th day of the 3rd month (fiscal
from the United States Postal Service, include the box
year corporations), or the 15th day of the 5th month (fiscal
number in the field labeled “PMB no.” in the address area.
DETACH HERE
IF NO PAYMENT IS DUE, DO NOT MAIL THIS FORM
(Calendar year corporations — Due March 15, 2004) (Fiscal year filers – see instructions) (Employees’ trust and IRA — Due April 15, 2004)
(Calendar year exempt organizations — Due May 17, 2004)
TAXABLE YEAR
Payment Voucher for Automatic Extension
2003
for Corporations and Exempt Organizations
CALIFORNIA FORM
3539 (CORP)
For calendar year 2003 or fiscal year beginning month _____ day ____ year 2003, and ending month _____ day ____ year ____ .
California corporation number
Federal employer identification number
-
Tax Due
.
,
Corporation/exempt organization name
Address
PMB no.
Type of form filed.
Form 100/100W
Form 100S
City
State
ZIP Code
Form 109
EXT-C Form 199
EFT TAXPAYERS, DO NOT MAIL THIS FORM
353903103
FTB 3539 2003
Penalties and Interest
•If the corporation or exempt organization fails to pay its total tax by the original due date, a late payment penalty plus interest will be added to the tax due.
•If the corporation or exempt organization does not file its CA tax return by the extended due date, or the corporation’s powers, rights, and privileges have been suspended or forfeited by the FTB or the California SOS, as of the original due date, the automatic extension will not apply and a delinquency penalty plus interest will be assessed from the original due date of the CA tax return.
•If the corporation or exempt organization is required to remit all of its payments through EFT and pays by another method, a 10% non-compliance penalty will be assessed.
Combined Reports
•If members of a combined unitary group have made or intend to make an election to file a combined unitary group single return, only the key corporation designated to file the return should submit form FTB 3539. The key corporation must include payment of at least the minimum franchise tax for each corporation of the combined unitary group that is subject to the franchise tax in California.
•If members of a combined unitary group intend to file separate returns with the FTB, each member must submit its own form FTB 3539 if there is an amount entered on line 3 of the Tax Payment Worksheet.
•If any member of a combined unitary group meets the requirements for mandatory EFT, all members must remit their payments through EFT, regardless of their filing election.
Exempt Organizations
•Form 100 filers:
The due dates for corporations also apply to the filing of Form 100, California Corporation Franchise or Income Tax Return, by political action committees and exempt homeowners’ associations.
Political action committees and exempt homeowners’ associations that file Form 100 should not enter the minimum franchise tax on line 1 of the Tax Payment Worksheet.
•Form 199 Filers:
Generally, Form 199, California Exempt Organization Annual Information Return, requires a $10 filing fee to be paid with the return on the original or extended due date.
Use form FTB 3539 only if paying the fee early. Enter the amount of the fee on line 3 of the Tax Payment Worksheet.
•Form 109 Filers:
The due dates for filing Form 109, California Exempt Organization Business Income Return, depend on the type of organization filing the return. Employees’ pension trusts and IRAs (including education IRAs) must file on or before the 15th day of the 4th month after the close of their taxable year. All other exempt organizations (except homeowners’ associations and political organizations) must file on or before the 15th day of the 5th month after the close of their taxable year.
TAX PAYMENT WORKSHEET FOR YOUR RECORDS
1 Total tentative tax. Include alternative minimum tax if applicable. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . .
2 Estimated tax payments including prior year overpayment applied as a credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3 Tax Due. If line 2 is more than line 1, see instructions. If line 1 is more than line 2, subtract line 2 from line 1. Enter the result here and on form FTB 3539 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1
2
3
How to Complete the Tax Payment Worksheet
Line 1 – Enter the total tentative tax, including the alterna- tive minimum tax, if applicable, for the taxable year.
•If filing Form 100, Form 100W, or Form 100S, and subject to franchise tax, the tentative tax may not be less than the minimum franchise tax and Qualified Subchapter S Subsidiary (QSub) annual tax (S corporations only).
•If filing Form 100, Form 100W, or Form 100S, and subject to income tax, enter the amount of tax. Corpora- tions subject to the income tax do not pay the minimum franchise tax.
•If a corporation incorporates or qualifies to do business in California on or after January 1, 2000, the corporation will compute its tax liability for the first taxable year by multiplying its state net income by the appropriate tax rate and will not be subject to the minimum franchise tax. The corporation will become subject to minimum franchise tax beginning in its second taxable year.
•If filing Form 109, enter the amount of tax. Form 109 filers are not subject to the minimum franchise tax.
Line 2 – Enter the estimated tax payments, including prior year overpayment applied as a credit. S corporations include any QSub annual tax payments.
Line 3
Tax due. If the amount on line 1 is more than the amount on line 2, then the corporation’s or exempt organization’s tentative tax is more than its payments and credits. The corporation or exempt organization has tax due.
Subtract line 2 from line 1. Enter this amount on line 3 and on form FTB 3539.
If the amount on line 2 is more than the amount on line 1, the payments and credits are more than the tentative tax. The corporation or exempt organization has no tax due. DO NOT SEND THE PAYMENT VOUCHER. The corporation or exempt organization will automatically qualify for an extension if the California tax return is filed by the extended due date and the corporation and or exempt organization is in good standing with the FTB and SOS.
Page 2 FTB 3539 2003
Completing the California Form 3539 is an important step for corporations and exempt organizations seeking an automatic extension to file their tax returns. This form allows you to indicate if you owe any tax and helps ensure compliance with state tax regulations. Below are the detailed steps to fill out the form correctly.
Once the form is completed and submitted, ensure that the corporation or exempt organization files its California tax return by the extended due date. This will help maintain good standing and avoid any potential penalties.
What is the purpose of Form FTB 3539?
Form FTB 3539 is used by corporations and exempt organizations in California to request an automatic extension to file their tax returns. This form allows eligible entities to extend their filing deadline without needing to submit a written request, provided they meet certain criteria, such as owing tax or being unable to file by the original due date.
Who should use Form FTB 3539?
Corporations and exempt organizations that cannot file their California tax return by the original due date should use Form FTB 3539. This includes entities that owe tax for the taxable year or those whose powers, rights, and privileges have not been suspended or forfeited by the Franchise Tax Board (FTB) or the California Secretary of State (SOS).
What are the due dates for filing Form FTB 3539?
The due date for filing Form FTB 3539 varies based on the type of organization and its fiscal year. For calendar year corporations, the form is due on March 15, 2004. For calendar year exempt organizations, the due date is May 17, 2004. Fiscal year filers should refer to the instructions for specific due dates based on their taxable year.
What happens if tax is due but not paid by the original due date?
If a corporation or exempt organization fails to pay its total tax by the original due date, a late payment penalty plus interest will be added to the tax due. It's crucial to pay 100% of the tax liability by the specified deadline to avoid these penalties.
Can I file Form FTB 3539 if I do not owe any tax?
No, if you do not owe any tax, there is no need to file Form FTB 3539. In such cases, you do not need to complete or mail the voucher. Only entities that owe tax are required to file this form.
What should I include with my payment when filing Form FTB 3539?
If you owe tax and are submitting Form FTB 3539, you must include a check or money order for the tax due. Ensure that you write the California corporation number or Federal Employer Identification Number (FEIN) and the year on the payment. Only the voucher portion should be mailed with the payment to the FTB.
What are the penalties for not complying with the requirements of Form FTB 3539?
If a corporation or exempt organization does not file its tax return by the extended due date or if its powers have been suspended, it will face a delinquency penalty plus interest from the original due date. Additionally, entities required to use Electronic Funds Transfer (EFT) but pay by another method will incur a 10% non-compliance penalty.
Filling out the California 3539 form can be a straightforward process, but mistakes can lead to complications. One common error is failing to check if tax is actually owed. Many organizations mistakenly complete the form when they do not owe any tax, which can be avoided by using the worksheet provided in the instructions.
Another frequent mistake is not submitting the form by the original due date. It’s crucial to remember that while an extension allows more time to file, it does not extend the time to pay any taxes owed. Missing this deadline can result in penalties and interest.
Inaccurate calculations on the tax payment worksheet are also a common issue. People often miscalculate their total tentative tax or fail to include the alternative minimum tax, if applicable. This can lead to incorrect amounts being reported, causing further delays and potential penalties.
Some filers neglect to include their California corporation number or Federal Employer Identification Number (FEIN) on the form. This information is vital for proper identification and processing of the form by the Franchise Tax Board (FTB).
Additionally, failing to follow the electronic funds transfer (EFT) requirements can result in penalties. Corporations that are required to use EFT but choose to pay by check may face a 10% non-compliance penalty. Understanding whether your organization falls under this requirement is essential.
Another mistake involves using the wrong form type. Organizations sometimes file the wrong version of the 3539 form, which can lead to delays in processing. It’s important to ensure that the correct form is being used based on the type of organization and tax obligations.
Not keeping a copy of the completed form for your records is also a common oversight. Maintaining a permanent record of submitted forms and worksheets is essential for future reference and for addressing any potential issues that may arise later.
Some individuals also forget to include the payment voucher when required. If tax is due, the voucher must be submitted along with the payment. Omitting this can lead to confusion and processing delays.
Lastly, failing to check the status of the organization with the FTB can lead to complications. If the organization’s powers, rights, and privileges have been suspended or forfeited, the automatic extension will not apply. This can result in additional penalties if not addressed prior to filing.
The California Form FTB 3539 is used by corporations and exempt organizations to request an automatic extension for filing their tax returns. Several other forms and documents are often utilized in conjunction with this form to ensure compliance with California tax regulations. Below is a list of these documents, each described briefly.
These forms and documents collectively support the filing process and ensure that organizations meet their tax obligations in California. Proper management of these documents can help avoid penalties and maintain compliance with state tax laws.
The California Form FTB 3539 is similar to several other tax-related documents. Each serves a specific purpose in the tax filing process for corporations and exempt organizations. Here are seven documents that share similarities with Form FTB 3539:
When filling out the California Form FTB 3539, there are important guidelines to follow. Adhering to these dos and don'ts can help ensure a smooth process.
Following these guidelines can help you avoid penalties and ensure compliance with California tax regulations.
This form is applicable not only to corporations but also to exempt organizations. Both entities can use it to request an automatic extension for filing their tax returns.
An extension to file does not mean an extension to pay taxes. Tax liabilities must be paid by the original due date to avoid penalties and interest.
If there is no tax due, there is no need to file Form 3539. Only complete the form if you owe taxes for the taxable year.
Only certain corporations and exempt organizations are required to use EFT. Those not subject to this requirement can pay by check or money order.
The extended due date varies based on the type of entity and its fiscal year. It is important to check the specific due dates applicable to your organization.
Even if your organization is in good standing, you must still file Form 3539 if you owe taxes and wish to obtain an extension to file your return.
When filling out and using the California Form FTB 3539, there are several important points to consider:
Understanding these key points can help ensure compliance and avoid unnecessary penalties when using Form FTB 3539 in California.