What Form 8453-LLC (2018) Is For
Form 8453-LLC (2018) is used by Limited Liability Companies to authorize the electronic submission of their California tax return, specifically Form 568, to the California Franchise Tax Board. This form acts as a signature document confirming that the return has been reviewed and approved by an authorized member or manager. It also allows the Franchise Tax Board to process any electronic payments associated with the return. Form 8453-LLC (2018) is not submitted to the tax authority but must be retained for compliance and audit purposes.
When You’d Use Form 8453-LLC (2018)
Form 8453-LLC (2018) is required in several everyday filing situations:
- Original return filing: This form must be completed when submitting your LLC’s 2018 Limited Liability Company Return of Income electronically through the state’s Business e-file system.
- Amended return filing: If corrections need to be made to a previously filed return, a new Form 8453-LLC (2018) must be signed to authorize the revised electronic submission.
- Filing under extension: When filing after the original due date using California’s automatic extension, this form is still required to finalize the return through electronic filing.
- Advance tax payment scheduling: This form allows LLCs to authorize future payments for the next tax year’s franchise tax or estimated fee at the time of submitting the current year’s return.
- Multiple LLC e-filing: One form may be used when submitting returns for several related LLCs, provided a detailed schedule is attached and adequately initialed by the signing representative.
Key Rules or Details for 2018
Several filing requirements apply under California law for Form 8453-LLC (2018):
- Signature requirements: The managing member or authorized representative must sign the form after the return is prepared but before the Electronic Return Originator submits it.
- Retention period: A signed Form 8453-LLC (2018), a copy of Form 568, supporting schedules, and the federal return must be kept for at least four years from the due date or date filed.
- Banking details validation: If authorizing payment, the routing number must be exactly nine digits, and the account number must conform to California’s formatting rules for electronic withdrawals.
- No mailing requirement: The completed Form 8453-LLC (2018) is not mailed to the California Franchise Tax Board; instead, it must be retained in the records of both the tax professional and the business entity.
- Unique California form: IRS Form 8453 cannot be used in place of Form 8453-LLC (2018), as the state requires a separate authorization specific to California LLC tax returns.
- Business e-file requirement: Under California’s electronic filing mandate, business entities using tax preparation software must use this form as part of their electronic document management.
Step-by-Step (High Level)
Form 8453-LLC (2018) must be completed as part of the California electronic submission process, following a precise workflow:
- Preparation of Form 568: Your tax professional completes the Limited Liability Company Return of Income for the 2018 tax year using approved software, including any required schedules such as Schedule B, Schedule K-1, or Schedule IW.
- Populate Form 8453-LLC: The preparer fills in key financial fields such as total income, ordinary income, tax and fee due, overpayment, and total amount due to match the corresponding lines on Form 568.
- Add banking information (if paying electronically): If you authorize payment through electronic funds withdrawal, the preparer will complete sections related to your bank account and set the intended withdrawal dates.
- Signatures are collected: The authorized member or manager signs Part V, and the Electronic Return Originator signs Part VI; if a separate paid preparer is involved, they must also sign in the designated space.
- Electronic submission to the FTB: Once all signatures are in place, your preparer transmits the return to the California Franchise Tax Board using the state’s Business e-file system.
- FTB acknowledgment: After acceptance, the Franchise Tax Board issues an electronic acknowledgment that includes the acceptance date, which your preparer records at the top of the signed form.
Common Mistakes and How to Avoid Them
LLCs often make filing mistakes that result in penalties, processing delays, or payment failures:
- Incorrect banking information: Providing inaccurate routing or account numbers can result in failed transactions and penalties; always obtain your banking details directly from your bank or financial institution.
- Signing out of sequence: Signing Form 8453-LLC (2018) before reviewing the return or after transmission is invalid; the authorized signer must sign only after reviewing the final return and before it is submitted.
- Using federal forms: IRS Form 8453 is not valid for California LLC tax returns; always use Form 8453-LLC (2018) to meet state-specific electronic filing requirements.
- Failing to keep records: Do not assume that electronic filing eliminates the need for paper records; you must retain signed copies of the form, Form 568, and all attachments for the whole retention period.
- Missing cancellation deadlines: If you need to cancel a scheduled payment, you must call the Franchise Tax Board at least two business days before the planned withdrawal date to avoid unintentional debits.
What Happens After You File
Once the Electronic Return Originator submits your LLC’s tax return and Form 8453-LLC (2018), the California Franchise Tax Board reviews and processes the submission. If accepted, the Board issues an acknowledgment that includes the acceptance date, which confirms your return has been filed. If payment was authorized, the funds are withdrawn based on the selected schedule and applied to your tax liability. If a payment fails, the Board may issue notices that include penalties and interest. You and your preparer must retain all documentation, as the Board may request to review it during an audit or examination under the state’s tax regulations.
FAQs
Do I need to submit Form 8453-LLC (2018) to the Franchise Tax Board?
No, this form is not part of the official form submission to the California Franchise Tax Board and must be retained by your tax professional and business records.
Is Form 8453-LLC (2018) required for all California LLCs regardless of tax classification?
Yes, all CA LLC entities must use Form 8453-LLC (2018) when electronically filing, regardless of whether they are classified as disregarded entities, partnerships, or corporations.
Can a Registered Agent sign Form 8453-LLC (2018) on behalf of the LLC?
Only an authorized member or manager of the LLC may sign the form unless specific power of attorney documentation grants such authority.
Is SOS Form LLC-4/8 related to Form 8453-LLC (2018)?
No, SOS Form LLC-4/8 is used to cancel or dissolve an LLC with the California Secretary of State, while Form 8453-LLC (2018) authorizes electronic filing of tax returns with the Franchise Tax Board.
Does Form 8453-LLC (2018) apply to out-of-state LLCs doing business in California?
Yes, any out-of-state LLC that must file Form 568 with the Franchise Tax Board must also complete Form 8453-LLC (2018) when using Business e-file.
