What Form 100S (2012) Is For
Form 100S (2012) is the California income tax return used by an S corporation to report business income, net income, taxable income, and franchise tax obligations for the 2012 tax year. Although an S corporation files Form 1120-S at the federal level under the Internal Revenue Code, California imposes an entity-level corporate income tax and a minimum tax.
This form ensures that state-specific adjustments are applied and that shareholder income is reported correctly through Schedule K-1.
When You’d Use Form 100S (2012)
Form 100S (2012) is required when certain filing conditions apply to an S corporation operating in California.
- Doing business in California: A domestic corporation or qualified foreign corporation must file this income tax return when registered with the Secretary of State or when it meets California’s doing business thresholds.
- Reporting pass-through income: An S corporation must file when business income, net income, or losses are passed through to shareholders using Schedule K-1.
- Meeting franchise tax obligations: Filing is required when calculating franchise tax based on the applicable tax rate or the minimum dollar amount.
- Operating in multiple states: A corporation must file when California-source income is reported alongside filings such as Form CT-3-S for other jurisdictions.
- Entity structure changes: Filing is required when a Business Entity converts from another structure, including certain limited liability companies or professional corporations.
Key Rules or Details for Form 100S (2012)
The 2012 tax year included specific California rules that affected how Form 100S (2012) had to be completed.
- Minimum franchise tax requirement: California required most S corporations to pay a minimum tax of $800 regardless of net income for the tax year.
- Tax rate application: Franchise tax was calculated using the established tax rates applied to California taxable income.
- Federal nonconformity adjustments: Corporations were required to adjust amounts reported on Form 1120-S to reflect differences between federal and California tax rules.
- Special entity considerations: Investment companies and regulated investment company structures were subject to additional filing limitations.
- Apportionment factors: Corporations with real property or personal property in multiple states applied sourcing rules based on gross receipts.
Step-by-Step (High Level)
Completing Form 100S (2012) requires following a precise sequence to ensure accurate reporting and compliance with California tax rules.
- Prepare federal documentation: Complete Form 1120-S and its supporting schedules, such as Schedule D, before transferring the figures to the California income tax return.
- Gather California worksheets: Collect Worksheet B, Worksheet C, and Schedule A-GR to support California-specific adjustments to business income.
- Calculate income and tax: Determine net income, taxable income, and franchise tax using the correct tax rate for the 2012 tax year.
- Apply allocation methods: Use customer-based sourcing and apply the aggregate method or a percentage method election when allocating Gross Receipts.
- Submit return and payment: File the completed tax return and remit any Estimated Tax due by the original filing deadline.
Common Mistakes and How to Avoid Them
Several recurring errors can affect the accuracy of Form 100S (2012) filings, but each can be avoided with careful preparation.
- Failing to pay the minimum tax: Avoid penalties by paying the dollar minimum tax even when the S corporation reports no net income.
- Misclassifying the entity: Prevent filing errors by confirming that the business is not unincorporated and qualifies as an S corporation.
- Incorrect shareholder reporting: Avoid amended tax returns by reporting California-adjusted figures on Schedule K-1 rather than federal-only amounts.
- Improper compensation treatment: Reduce audit risk by clearly separating salary allowance payments from shareholder distributions.
- Ignoring apportionment rules: Avoid incorrect tax calculations by applying proper sourcing for gross receipts and property-based factors.
What Happens After You File
After Form 100S (2012) is filed, the California Franchise Tax Board processes the income tax return and applies payments toward any franchise tax or Corporate Income Tax due. If the return reflects an overpayment, a refund may be issued after review. When a balance remains unpaid, interest and penalties may accrue from the original due date.
Any discrepancies related to taxable income, apportionment, or Gross Receipts may result in a written notice requesting clarification. Businesses should retain copies of all tax returns and supporting records for future reference.
FAQs
Is Form 100S (2012) the same as Form 568 for California businesses?
No, Form 100S (2012) applies to an S corporation, while Form 568 is used by limited liability companies that are taxed under separate California filing rules.
How is income reported if the S corporation has a corporate partner?
When an S corporation has a corporate partner, income is still reported through Schedule K-1, and the partner reports that income according to its own Corporate Income Tax requirements.
Do trade names affect the obligation to file Form 100S (2012)?
No, using trade names does not change the requirement to file an income tax return if the S corporation is registered and doing business in California.
Do other states’ tax laws affect Form 100S?
No, Form 100S is governed solely by California law and administered by the California Franchise Tax Board. Other states’ corporate tax rules apply only if the corporation has filing obligations in those states.
