Form 8453-LLC (2016): California E-file Return Authorization

What Form 8453-LLC (2016) Is For

Limited liability companies use Form 8453-LLC (2016) to authorize the electronic filing of their California tax return, specifically Form 568, with the California Franchise Tax Board. This form serves three primary purposes: it verifies that the information submitted is accurate and complete; it grants permission for the return to be transmitted electronically; and, when applicable, it authorizes the FTB to withdraw franchise tax payments from the business bank account specified on the form.

When You’d Use Form 8453-LLC (2016)

Form 8453-LLC (2016) is required in several everyday filing situations for California LLCs:

• Regular return filing: You must complete and sign Form 8453-LLC when e-filing your Limited Liability Company Return of Income (Form 568) for the applicable tax year.
  
  
• Late filing with extension: If your LLC uses California’s automatic extension and files after the original deadline, Form 8453-LLC is still required to authorize electronic transmission.
  
  
• Amended return via e-file: If you are submitting an amended return electronically, a newly signed Form 8453-LLC must accompany the corrected filing to remain compliant with California law.
  
  
• Electronic Payment Authorization: If you choose to pay your franchise tax or estimated fees through electronic funds withdrawal, Form 8453-LLC is used to obtain the necessary banking authorization.

Key Rules or Details for the 2016 Tax Year

For tax year 2016, business entities must follow strict procedures when submitting Form 8453-LLC (2016):

• Who must sign: The form must be signed by an authorized member or manager of the LLC before the return is electronically transmitted to the Franchise Tax Board.
  
  
• What the signature authorizes: The signer confirms that the return is accurate and complete and authorizes the FTB to transmit, process, and share return information with the electronic return originator (ERO).
  
  
• ERO responsibilities: The ERO must verify the return, obtain the necessary signatures, provide a signed copy to the LLC, and retain the signed form for a minimum of four years.
  
  
• Paid preparer duties: If a paid preparer other than the ERO completes the return, they must sign the form under penalty of perjury to affirm the return's accuracy.
  
  
• Banking information standards: When paying electronically, the banking information must be accurate and taken directly from a check or bank statement to avoid rejected payments or delays.

Step-by-Step (High Level)

Here is a high-level overview of how business owners and EROs should complete and submit Form 8453-LLC (2016):

• Prepare the LLC’s tax return: Work with your electronic return originator or use approved tax software to complete Form 568 and all required schedules, including California Schedule K-1 for each member.
  
  
• Review the complete return: Carefully examine all income, deductions, business activities, and filing requirements to ensure the return is accurate before proceeding with signature authorization.
  
  
• Fill out Part I of Form 8453-LLC: The ERO enters summary information from Form 568, including total income, business income, tax liabilities, credits, and payments; you must verify that all entries match the filed return.
  
  
• Complete Part II (optional): If you are authorizing electronic funds withdrawal for your 2016 tax payment, provide the exact withdrawal amount and the intended payment date.
  
  
• Fill in Part III (optional): You may schedule your 2017 annual franchise tax or estimated fee payment here for convenience; this is not part of your 2016 tax liability.
  
  
• Provide banking information in Part IV: Enter accurate routing and account numbers from a business bank account if you selected electronic payment in Part II or III.
  
  
• Sign Part V of the form: An authorized member or manager of the LLC must sign, date, and indicate their title to complete the official declaration under penalty of perjury.
  
  
• Submit the signed form to the ERO: You may send the signed form by fax or other approved means; however, the return cannot be transmitted until the ERO has it on file.
  
  
• ERO signs Part VI: The ERO must also sign to confirm they reviewed the return, obtained proper signatures, and will retain the signed form in accordance with Franchise Tax Board rules.
  
  
• Keep copies for records: Both the LLC and the ERO must retain a signed copy of Form 8453-LLC and the complete tax return for a minimum of four years from the filing or due date.

Common Mistakes and How to Avoid Them

Avoid these frequent errors when using Form 8453-LLC (2016):

• Signing before return is complete: Always wait until the final version of the tax return is ready for transmission before signing the authorization form.
  
  
• Incorrect banking details: Use only a check or bank statement—not a deposit slip—to confirm your routing and account numbers and prevent failed payment attempts.
  
  
• Missing required signatures: Ensure that the authorized LLC member or manager, the ERO, and the paid preparer (if applicable) all sign the form before submission.
  
  
• Amounts not matching Form 568: Double-check that all quantities listed in Part I of Form 8453-LLC exactly match the figures reported on Form 568 to avoid filing issues.
  
  
• Failing to keep a signed copy: Retain a signed copy of the form for at least four years, as the Franchise Tax Board may request it during audits or reviews.

What Happens After You File

Once the signed Form 8453-LLC (2016) is submitted to the ERO and the return is transmitted to the California Franchise Tax Board, the FTB will process the e-filed return and send an electronic acknowledgement back. This confirmation, not the form itself, is your official proof of filing. If you authorized electronic payment, the FTB will withdraw the amount on your chosen date. If the return contains errors, the FTB may issue a notice or request corrections. Both the LLC and the ERO should retain all related documents in case of future audits or questions.

FAQs

Do I need Form 8453-LLC (2016) if I operate a single-member LLC in California?

Yes, all limited liability companies in California, including single-member LLCs and disregarded entities, must submit Form 8453-LLC (2016) when e-filing Form 568.

Can I use Form 8453-LLC (2016) to pay other tax forms, such as Form 100S or Form FTB 3522?

No, Form 8453-LLC (2016) only authorizes payment and filing for the Limited Liability Company Return of Income (Form 568), not for S corporations or C corporations filing Form 100S or making payments with Form FTB 3522.

Is Form 8453-LLC (2016) required if I file through a business e-file provider?

Yes, even if you use a business e-file solution or a Private Service Company, you must still complete and sign Form 8453-LLC (2016) before your return is transmitted securely to the Franchise Tax Board.

What happens if I filed Form LLC-1 recently, and this is my first return?

If you filed Form LLC-1 to register your business with the California Secretary of State, you are still required to file Form 568 and complete Form 8453-LLC (2016) during your first tax year.

Do I need to file Form 8453-LLC (2016) if I submit an amended return for my California LLC?

Yes, when filing an amended return electronically for any tax year, a new and updated Form 8453-LLC (2016) must be signed and submitted to authorize the revised transmission.

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