What Form 100 (2012) Is For
Form 100 (2012) is the California Corporation Franchise or income tax return used to report income taxes and franchise tax obligations for a California corporation and other qualifying business entities. This form is filed with the California Franchise Tax Board (or California FTB) to calculate tax based on net income and statutory minimum tax rules. Form 100 applies to domestic corporations, qualified corporations, and foreign corporations doing business in California, and it is separate from sales and use tax filings.
When You’d Use Form 100 (2012)
Corporations are required to file Form 100 (2012) when specific legal, registration, or operational conditions apply during the taxable years.
- Corporations incorporated in California: A business entity formed under California law must file annual tax returns if it remains active with the California Secretary of State.
- Foreign corporations doing business in California: Foreign corporations that meet the doing business thresholds based on sales, property, or payroll must file and pay the California Franchise Tax.
- Qualified corporations registered in the state: Corporations registered but not actively operating must still file during the Filing Period to report status and minimum tax obligations.
- Limited Liability Company electing corporate taxation: A California LLC, or Limited Liability Company, taxed as a corporation, must file Form 100 instead of Form 568.
- Corporations correcting or filing late returns: Businesses addressing prior-year errors must file the appropriate return and resolve any outstanding tax payments and liabilities.
Key Rules or Details for 2012
Several statutory and administrative rules governed the application of Form 100 (2012) to corporations during the 2012 tax year.
- Minimum tax requirement: Most corporations were required to pay the $800 minimum tax regardless of income level or business activity.
- Income calculation standards: Net income was calculated using California-specific adjustments established under the Revenue and Taxation Code.
- Estimated payment obligations: Corporations expecting to exceed the minimum tax were required to submit quarterly forms such as Form 100W and Form 3522.
- Apportionment and allocation rules: Corporations with multistate operations were required to use Schedule R for apportionment and allocation of income, including Water’s Edge filers.
- Tax credit limitations: Tax credits can reduce income-based taxes, but generally cannot reduce the California Franchise Tax below the statutory minimum.
Step-by-Step (High Level)
Filing Form 100 (2012) involves a defined sequence of steps to ensure accurate reporting and compliance with California requirements.
- Confirm filing responsibility: Verify whether the corporation meets the filing requirements under California law based on its incorporation status, registration, or doing business thresholds.
- Identify the correct filing timeline: Determine the applicable filing period, confirm first-year rules, and note that estimated payments are generally due beginning in the 4th month of the taxable year.
- Gather required records: Collect financial statements, prior tax returns, annual forms, quarterly forms, and all related schedules needed to support reported amounts.
- Calculate California taxable amounts: Adjust federal figures to determine net income and total tax liabilities using California-specific rules.
- Complete ownership and disclosure requirements: File the Statement of Change in Control and Ownership of Legal Entities when ownership changes meet reporting thresholds.
- Submit the return and payments: File Form 100 (2012), remit required tax payments, and confirm a successful End Session if filing electronically.
Common Mistakes and How to Avoid Them
Specific errors can lead to penalties, notices, or delays when filing Form 100 (2012).
- Failing to pay the minimum tax: Avoid penalties by confirming whether the first-year exemption applies before assuming payment is not required.
- Using the wrong return type: Ensure that C corporations file Form 100 rather than the California S Corporation Franchise or income tax return used by S corporations.
- Misclassifying entity status: Review whether pass-through entities or disregarded entities are subject to corporate filing rules before submitting the return.
- Misreporting apportionment: Use Schedule R accurately to avoid errors in apportionment and allocation of income and jurisdictional reporting code entries.
- Confusing franchise tax with sales taxes: Separate California Franchise Tax obligations from sales tax, use tax, and sales and use tax return filings administered by the Board of Equalization.
What Happens After You File
After Form 100 (2012) is submitted, the California Franchise Tax Board reviews the return to verify reported income, tax payments, and compliance with California law. The Tax Board may issue a notice confirming acceptance, requesting additional information, or assessing additional tax liabilities and interest.
If discrepancies are identified, the corporation may need to respond with documentation or file an amended return. Businesses must continue filing annually and remain compliant until they formally dissolve or obtain a Certificate of Compliance from the California Secretary of State.
FAQs
Do I still need to file Form 100 (2012) if my corporation had no income in 2012?
Yes, unless your corporation qualifies for a first-year exemption or meets the narrow exception rules, you must file the return and pay the $800 minimum franchise tax even if no income was earned.
Is Form 100 (2012) used by limited liability companies or S corporations?
Limited liability companies taxed as corporations and S corporations that do not file Form 100S must use Form 100 (2012) if they are treated as corporations for federal tax purposes.
Can I claim tax credits against the minimum franchise tax amount?
Most tax credits, including research or enterprise zone credits, cannot reduce the minimum franchise tax; however, they may be applied against the calculated income tax if it exceeds $800.
Does California’s tax code follow federal tax rules completely?
No, California tax policies diverge from federal income tax rules; it disallows several federal deductions, such as enhanced depreciation, and does not follow all federal tax brackets.
