What California Form 100S (2014) Is For
California Form 100S (2014) reports an S corporation’s franchise tax and income tax information for the Franchise Tax Board. You file it when the corporation holds S corporation status for federal purposes and meets California filing rules.
Form 100S aligns with the federal return by referencing Form 1120-S amounts, schedules, and related tax forms. California taxes S corporations at the entity level, and the minimum franchise tax can apply each year.
The calculation uses taxable income at 1.5 percent, and the result is compared to the $800 minimum amount. FTB 3805Q adjustments and applicable FTB Pub. guidance can change amounts reported on Form 100S.
When You’d Use California Form 100S (2014)
You use California Form 100S (2014) when an S corporation is incorporated, registered, or doing business in California. You generally file by the 15th day of the third month after the taxable year ends.
You can file later under an automatic extension, and you must pay the franchise tax by the original deadline. You amend when the federal return changes, or when errors appear after filing the original tax returns.
To support the correction, you use Form 100X and include updated schedules and explanations. You respond to Franchise Tax Board notices and document issues tied to missing schedules, mismatched payments, or inconsistent federal return amounts.
Key Rules or Details for 2014
California recognizes the federal S election for federal purposes, so you do not file a separate California election. You still apply California rules for taxable income adjustments, credits, and state-specific modifications for 2014.
You must document depreciation limits and other federal provision rules that affect reported income. You may need Schedule R when the S corporation operates in California and other states within the United States.
You may also need Schedule M-1 for receipts or assets, and Schedule D for built-in gains reporting. You should keep records that support passive activities, charitable contributions, and other items reported on Form 100S schedules.
Step-by-Step (High Level)
Step 1: You confirm S corporation status for 2014, and you gather financial records, the federal return, and prior tax returns.
Step 2: You compute California taxable income using the reconciliation method, and you apply required state adjustments and limitations.
Step 3: You complete Schedule R when apportionment applies, and you apply the California percentage to business income.
Step 4: You complete Form 100S and prepare Schedule M-1 and Schedule D when the return’s facts require them.
Step 5: You calculate the franchise tax, and you compare it to the minimum franchise tax to determine the final tax liability.
Step 6: You prepare shareholder Schedule K-1 details, and you file with payments, attachments, and proof of submission.
Common Mistakes and How to Avoid Them
Taxpayers experience preventable filing delays when Form 100S submissions contain recurring, correctable errors. Early identification supports cleaner compliance and smoother Franchise Tax Board processing. A review checklist can align the return, schedules, and payments.
- Mismatched EIN and Entity Name: This mistake occurs when Form 100S entries differ from IRS registration records. You must match the EIN and legal name to Form SS-4 records.
- Missing Required Schedules: This mistake occurs when filers omit Schedule R, Schedule M-1, or Schedule D attachments. You must attach every required schedule based on the return’s facts.
- Late Payment With Timely Filing: This mistake occurs when payment posts after the 15th day due date. You must remit franchise tax by the original deadline, even with extensions.
- Minimum Franchise Tax Miscalculation: This mistake occurs when filers skip the $800 minimum franchise tax comparison. You must compare the 1.5 percent tax to $800, and use the greater amount.
- Federal Return Reconciliation Errors: This mistake occurs when Form 1120-S amounts do not match reported ordinary income figures. You must reconcile federal return totals to California adjustments before filing.
What Happens After You File
The Franchise Tax Board processes Form 100S, verifies math, confirms schedules, and posts payments to the account. The Franchise Tax Board may send a notice when schedules are missing, payments do not match, or tax forms are incomplete.
You should retain filing receipts, payment confirmations, and supporting records for follow-up needs. Late filing or late payment triggers assessments on the unpaid amount, and the Franchise Tax Board calculates penalties and interest.
You can restore good standing by filing missing tax returns, paying amounts due, and meeting the Secretary of State requirements. A complete response package should include the requested documents, clear explanations, and a dated submission record.
FAQs
Do California S corporations always owe the $800 minimum franchise tax?
Most California S corporations owe at least the $800 minimum franchise tax each year. A first-year exemption can apply to newly incorporated or newly qualified corporations.
Does an automatic extension change when the tax must be paid?
An automatic extension allows later filing of Form 100S. Payment remains due by the original deadline to avoid additional charges.
When is Schedule R required with Form 100S?
Schedule R is required when business activity spans California and other states. The schedule determines apportionment factors used in computing California taxable income.
Does Form 100 replace Form 100S for an S corporation?
Form 100 applies to C corporations, and Form 100S applies to S corporations that keep an active S election. A status change can require short-period returns for each classification.
Do limited liability companies or limited partnerships use Form 100S?
Limited liability companies generally file Form 568, and a limited partnership follows separate filing rules. These entities are not eligible to file Form 100S.
