What California Form 100S (2017) Is For
California Form 100S (2017) reports California corporation income tax for a Subchapter S legal entity with filing requirements. The California Franchise Tax Board administers income taxes under California law and the California Revenue and Taxation Code.
Most pass-through entities pay a tax rate, manage tax liabilities, and issue California Schedule K-1 for shareholders. Form 100S supports small business reporting in the United States and coordinates with federal government concepts tied to Form 1040.
The return calculates tax credits, tracks net operating losses, and applies California adjustments for charitable contributions and tax-exempt interest income. The filing differs from C corporation returns, partnership filings on Form 1065, and limited liability company filings on Form 568.
When You’d Use California Form 100S (2017)
A corporation files Form 100S when it incorporates in California, registers the legal entity, or meets doing-business thresholds. The return reports corporation income tax, tax liabilities, and income taxes for the tax year.
A foreign corporation with a California nexus can also have a filing obligation under California law. The due date falls on the 15th day of the third month, and an extension moves the filing deadline, not the payment deadline.
The filer attaches Schedule S, claims tax credits, and applies Internal Revenue Code conformity adjustments, including IRC Section 179 limits. A corporation uses Form 100X for corrections, and a Subchapter S election controls pass-through treatment, not tax avoidance.
Key Rules or Details for 2017
California imposes the $800 minimum for the California Corporation Franchise, plus a 1.5 percent tax rate for many Subchapter S entities. Financial S corporations face a higher rate, and certain gains trigger additional corporate taxes and related tax liabilities.
California also applies special rules for IRC Section 1231 gains and other items reported on Schedule D-1. Shareholders report pass-through income from California Schedule K-1 on Form 540NR or federal Form 1040, as applicable.
California law follows the Internal Revenue Code as of January 1, 2015, which affects tax credits and net operating losses. Depreciation adjustment and IRC Section 179 deduction computations often differ from federal rules. Interest Expense Deduction limits can affect investment income.
Step-by-Step (High Level)
Step 1: The corporation confirms filing requirements under California law by reviewing California Corporation Franchise nexus thresholds and Secretary of State records.
Step 2: The preparer completes the federal return first, then transfers ordinary income and expense details to Form 100S, including total other income lines.
Step 3: The corporation applies California adjustments, apportions income when required, and computes the tax rate, tax liabilities, and related income taxes.
Step 4: The corporation claims tax credits, tracks net operating losses, and prepares Schedule S, Schedule K, and California Schedule K-1 for each shareholder, including an irrevocable trust beneficiary.
Common Mistakes and How to Avoid Them
IRS processing slows when submissions contain filing defects that block validation and matching. A filer who identifies each defect and applies the correct fix supports consistent compliance and timely processing.
- Missing Signature or Officer Title: This mistake occurs when the corporation files an unsigned return or omits the authorized signer’s title. The taxpayer must sign, date, and enter the officer's title before submission.
- Mismatched Employer Identification Number: This mistake occurs when the return lists an EIN that differs from Internal Revenue Service records. The taxpayer must verify the EIN, the legal name, and the name control before e-filing.
- Missing Required Attachments: This mistake occurs when the filing omits Schedule S, Schedule K-1 (100S), or required supporting statements, including Schedule D-1, when reported items require it. The taxpayer must attach every required schedule and statement that corresponds to completed line items.
- Incorrect Payment Dating: This mistake occurs when the taxpayer submits payment after the original due date while relying on an extension. The taxpayer must remit payment by the original deadline and file by the extended deadline.
What Happens After You File
The California Franchise Tax Board processes Form 100S and verifies identifiers, math accuracy, and payment posting. The government agency records Schedule K-1 allocations for matching against shareholder filings, including Form 540NR.
The agency maintains California Tax Information records and reviews entity data tied to Form 8832 classifications when relevant. The agency issues notices, requests supporting schedules, or starts an audit for income computations and allocation methods.
Review activity often focuses on apportionment, passive activity, and items tied to tangible personal property and property tax reassessment. A corporation that ends operations files a final return, reports dissolution, and updates the Secretary of State records to stop assessments.
FAQs
Do S corporations file with the Internal Revenue Service and California?
Yes, the corporation files a federal S return and files Form 100S with the California Franchise Tax Board for the tax year.
Does California charge corporation income tax for S corporations?
Yes, California assesses the $800 minimum franchise tax and applies the 1.5 percent tax rate on net income.
Does a shareholder owe tax without distributions?
Yes, shareholders report California Schedule K-1 items, which can include portfolio income allocations tied to partnership interests. Shareholders pay tax on allocated amounts.
Can a corporation amend Form 100S directly?
No, the corporation files Form 100X to correct Form 100S amounts, schedules, or allocations reported previously for that year.
Do multi-state S corporations apportion income to California?
Yes, the corporation uses single-sales factor rules on Schedule R to determine California-source income for reporting and payment. The approach differs from Partnership Return of Income filings, including Form 565.
