Form 8453-P (2021): California E-file Return Authorization

What Form 8453-P (2021) Is For

Form 8453-P (2021) is used to authorize the electronic filing of California partnership income tax returns with the California Franchise Tax Board. It applies to pass-through entities such as general partnerships, limited partnerships, and California LLCs filing Form 565. This paper-based signature form is required even when using business e-file software. It confirms that the return has been reviewed and approved by both the partnership and the Electronic Return Originator. 

Although the form is never mailed to the FTB, it is a legally required part of the filing process and must be retained by the preparer to ensure compliance with California law.

When You’d Use Form 8453-P (2021)

Partnerships and other business entities must use Form 8453-P (2021) whenever they electronically file their California income tax return using software or a tax preparer.

• Original return filing: This form is used to authorize the electronic submission of the initial Form 565 for the tax year, even if no tax is due or a refund is not expected.
  
  
• Amended return filing: If your partnership submits a corrected income tax return electronically after the original filing, you must complete a new Form 8453-P for that amended return.
  
  
• Extended or late filing: When a partnership files during California’s extension period or after the deadline has passed, Form 8453-P is still required for electronic filing.
  
  
• Software-prepared returns: All tax returns prepared using tax software must be e-filed. For business owners, including foreign partnerships and disregarded entities, Form 8453-P is the only acceptable signature method.

Key Rules or Details for 2021

Form 8453-P (2021) is governed by strict rules from the California Franchise Tax Board to ensure authorized, timely, and verifiable submission of partnership returns.

• Signature requirements: Only an authorized representative, such as a general partner or managing member, may sign the form in accordance with the California Revenue and Taxation Code.
  
  
• Retention rules: The Electronic Return Originator must retain the signed form for a minimum of four years, regardless of whether the return involves foreign entities or disregarded entities.
  
  
• California-specific forms: Tax preparers must use Form 8453-P exclusively; using federal forms, such as Form 1040, Form 1065, or Form 1120S, violates California’s business e-file compliance standards.
  
  
• Banking details: If the return includes electronic funds withdrawal or direct deposit, accurate banking details must be entered on the form, matching figures reported in related schedules such as Schedule K, Schedule K-1, and Schedule E.
  
  
• Use with state tax forms: This authorization applies to partnership filings associated with Form FTB 3804, Form FTB 3832, Form FTB 3536, Form FTB 3834, and Form FTB 3537, which may be submitted in conjunction with the annual return.

Step-by-Step (High Level)

The filing process using Form 8453-P (2021) involves multiple stages that ensure compliance with California’s e-file program requirements.

• Prepare tax return data: Begin by completing Form 565, California Limited Liability Company Return of Income, or the appropriate partnership return, including all required attachments and schedules.
  
  
• Enter required figures: Transfer key financial data such as total income, taxable income, business income, and principal business activity codes to Form 8453-P, ensuring consistency with Schedule B, Schedule D, Schedule D-1, Schedule M-3, and Schedule T.
  
  
• Verify entity information: Accurately input the partnership's Employer Identification Number, federal employer identification number, tax identification number, and Secretary of State file number; also include classification details from Form 8832 or Form LLC-3, if applicable.
  
  
• Review by authorized representative: The partnership’s authorized signer must review the entire return and Form 8453-P, including supporting documents such as the California Schedule K and Schedule K-1, before signing.
  
  
• ERO signature and transmission: The Electronic Return Originator must sign the form only after the partnership representative has signed, and then electronically submit the return to the California Franchise Tax Board.
  
  
• Document retention: The signed Form 8453-P, along with supporting schedules like Schedule IW, Schedule R, and Form FTB 3885L, must be retained by the ERO for at least four years, either in paper or electronic format.

Common Mistakes and How to Avoid Them

Several frequent errors can lead to rejections or noncompliance when filing using Form 8453-P (2021), but each can be prevented with proper procedures.

• Transmitting before signing: The ERO must not transmit the return until the authorized representative of the partnership has physically signed Form 8453-P.
  
  
• Using the wrong form: Substituting Form 8453-P with federal forms like Form 1040 or California forms for other entity types, such as Form 100-S, violates California e-file rules.
  
  
• Incorrect entity signer: Only individuals with legal authority, such as a general partner or managing member, may sign; bookkeepers or unauthorized employees are not permitted to authorize tax filings.
  
  
• Bank account errors: Entering incorrect routing or account numbers in the banking section can delay payments or refunds, resulting in extended payment failures or late payment penalty notices.
  
  
• Missing supporting schedules: Failure to include or reconcile critical documents, such as Schedule P, Schedule K, or Schedule K-1, can result in filing rejections or trigger audits by the Franchise Tax Board.
  
  
• Retention failures: The ERO must maintain all signed forms and associated documentation in a secure system; early disposal or disorganized storage violates the requirements of the California Revenue and Taxation Code.

What Happens After You File

Once the return is transmitted using Form 8453-P (2021), the Franchise Tax Board processes the submission and typically issues an acknowledgment within 24 to 48 hours. If the return is accepted, it proceeds through validation and review, which includes checks for accuracy and adherence to required schedules. If rejected, the ERO must make corrections and may need to retransmit the file. The partnership may receive separate notices from the Franchise Tax Board regarding tax payments, refund processing, or additional verification requests. In the case of an audit or inquiry, the ERO must provide the signed Form 8453-P upon request, ensuring compliance with final return procedures and source income verification for both domestic and foreign entities.

FAQs

Do single-member LLCs need to file Form 8453-P (2021)?

No, single-member LLCs generally file as disregarded entities and use Form 568, not Form 8453-P (2021), unless they are classified as partnerships for federal tax purposes.

Can a C corporation or S corporation use Form 8453-P (2021) for e-filing?

No, C corporations and S corporations must use their respective forms, such as Form 100 or Form 100S, as Form 8453-P (2021) is strictly for partnerships.

Is Form 8453-P (2021) used when claiming a tax credit on a partnership return?

Yes, if a partnership claims a tax credit on its California income tax return, Form 8453-P (2021) must still be completed to authorize electronic filing.

Does the Tax Cuts and Jobs Act affect how Form 8453-P (2021) is filed in California?

No, while the Tax Cuts and Jobs Act affects federal income tax rules, California law has its own requirements and still mandates the use of Form 8453-P (2021) for electronic filing.

Are security service businesses required to file Form 8453-P (2021) if organized as partnerships?

Yes, security service businesses classified as partnerships must follow standard business e-file rules and complete Form 8453-P (2021) when submitting their income tax return electronically.

‍