What Form 3588 (2016) Is For
Form 3588 (2016) is a payment voucher issued by the California Franchise Tax Board to help limited liability companies submit check or money order payments for electronically filed Form 568 returns. This form is used only when a balance is due, and the business chooses to pay by mail rather than online. It does not apply to the annual LLC tax or the LLC fee and is intended solely to link paper payments with electronic return submissions.
When You’d Use Form 3588 (2016)
You would use Form 3588 (2016) only under particular conditions that apply to your method of filing and payment:
- You e-file Form 568: This voucher is strictly for electronically filed returns submitted through approved tax software or a qualified e-file provider.
- You owe a balance: The form is only needed when the return shows an amount due; it is not used if your California LLC expects a refund or has no balance.
- You are paying by paper check or money order: Form 3588 (2016) must accompany mailed payments and should not be used if you choose Web Pay or credit card payments.
- You are submitting a late or amended return: Business owners may use this form to send payment for an amended Form 568 if additional tax is owed for the taxable year.
Key Rules or Details for 2016
Several essential filing requirements and procedures apply specifically to Form 3588 (2016) for the 2016 tax year:
- Electronic filing is mandatory for most LLCs: Since 2014, limited liability companies in California that use tax preparation software have been required to file Form 568 electronically under California law.
- Unique payment type for every form: Form FTB 3522 is used for the $800 annual franchise tax, while Form FTB 3536 covers estimated LLC fees; only Form 3588 (2016) applies to balance due payments from Form 568.
- Proper identification: Ensure that you include your California Secretary of State file number, federal Employer Identification Number (EIN), and current business address on the form.
- Payment deadlines vary depending on the LLC type: pass-through entities, C corporations, and single-member LLCs have different due dates. Therefore, it is essential to refer to the correct taxable year deadlines listed by the Franchise Tax Board.
Step-by-Step (High Level)
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The following steps explain how to properly complete and submit Form 3588 (2016) for a California LLC that files electronically and owes a balance:
- E-file your Form 568: File your Limited Liability Company Return of Income through an approved tax software or an authorized e-file provider.
- Check your balance due: Review lines 13 and 18 of Form 568 to confirm that there is an amount owed; if there is no balance due, you should not use Form 3588.
- Choose your payment method: If you are using Web Pay or a credit card, do not submit Form 3588; this form is only used when sending a check or money order.
- Download and complete the voucher: Obtain Form 3588 (2016) from ftb.ca.gov or use the preprinted copy, making sure to include your California Secretary of State file number, EIN, and correct payment amount.
- Prepare your check or money order: Make it payable to the Franchise Tax Board and include “2016 FTB 3588” along with your SOS file number in the memo line.
- Mail the voucher and payment: Enclose both items in a single envelope and mail them to the official Franchise Tax Board payment address listed on the form.
- Retain all documents: Keep copies of your voucher, check, and Form 568 for at least four years in case of audits or filing inquiries.
Common Mistakes and How to Avoid Them
To ensure timely processing, avoid these common errors when submitting Form 3588 (2016):
- Using Form 3588 with online payments: If you pay through Web Pay or credit card, do not mail Form 3588 because it may cause duplicate payment entries in your tax records.
- Confusing Form 3588 with Form 3522: The $800 annual franchise tax must be paid using Form FTB 3522; therefore, using Form 3588 for this payment will result in misapplied funds.
- Sending Form 3588 when no payment is due: Mailing this form when your return shows no balance causes unnecessary processing and delays any expected refund.
- Missing or incorrect identifying information: Always include your California Secretary of State file number, federal employer identification number, and business address to ensure your payment is matched to the correct tax year.
- Using colored ink: The Franchise Tax Board’s scanners do not reliably read colored ink, so always use black or blue ink to complete the form.
- Stapling the check to the voucher: Staples can damage processing machines, so use a paper clip or leave the items loose inside the envelope.
- Including a paper return: Do not include a printed copy of Form 568 with your payment, since the California Franchise Tax Board already has your return electronically.
- Missing the payment deadline: Even if you file an extension, you must still pay by the original deadline or face penalties and mandatory interest.
What Happens After You File
After you mail Form 3588 (2016) with your payment, the California Franchise Tax Board will process the check and match it to your electronically filed return. Processing can take up to three weeks, particularly during peak filing periods. You can verify the payment was received by checking your business account online using your SOS file number or EIN. If the check is returned, additional penalties may apply, and you may be required to use a guaranteed payment method for future submissions. Always retain a copy of the voucher, canceled check, and Form 568 for your business records.
FAQs
Can I use Form 3588 (2016) to pay the annual $800 franchise tax for my California LLC?
No, the $800 annual franchise tax must be paid separately using Form FTB 3522 and cannot be submitted with Form 3588 (2016).
Do single-member LLCs and disregarded entities need to file Form 3588 (2016) if they e-file a return with no balance due?
No, single-member LLCs and disregarded entities should not file Form 3588 (2016) unless there is an actual payment due on their electronically filed Form 568.
Should I include my California business license or business registration documents with the voucher?
No, you should not include any business license documents or registration certificates when mailing Form 3588 (2016); only the voucher and payment are required.
Is Form 3588 (2016) used for C corporations that file Form 100S in California?
No, C corporations and S corporations filing Form 100 or Form 100S must follow separate filing requirements and should not use Form 3588 (2016).
Can I include payment for other tax liabilities or business activities with this voucher?
No, Form 3588 (2016) is only used for the balance due on an e-filed Form 568 and should not be used to pay other tax liabilities or fees related to business activities.
