What Form 3539 (2013) Is For
Form 3539 (2013) is a payment voucher used by corporations and exempt organizations to make tax payments when requesting an automatic extension to file their California franchise or income tax return. While the extension to the file is granted automatically, the payment must still be made by the original due date to avoid penalties and interest. This form ensures proper crediting of the payment to the correct tax year and type, allowing the California Franchise Tax Board to apply it accurately to the business’s account.
When You’d Use Form 3539 (2013)
You would use Form 3539 (2013) if your corporation needs additional time to file, but still owes tax that must be paid by the original deadline.
Unpaid tax liability by original due date
Use Form 3539 if estimated tax payments do not fully cover the income tax and franchise tax owed for the 2013 tax year.
You’re filing after the 3rd month but before the 9th month
A calendar-year corporation must submit payment by March 17, 2014 (the 15th day of the 3rd month), even if it plans to file by the extended September 15, 2014 deadline.
Business in good standing with the Secretary of State
Only corporations in good standing with the California Secretary of State and the Franchise Tax Board are eligible for the automatic extension.
C Corporation, S Corporation, or exempt organization
This form applies to filers of Form 100, Form 100S, Form 100W, Form 109, or Form 199 that need to make extension payments.
Key Rules or Details for 2013
The 2013 tax year has specific filing and payment guidelines that corporations must follow when using Form 3539.
Automatic six-month extension to file
Corporations in good standing automatically receive a six-month extension to file their franchise tax return if payment is made on time.
No extension to pay tax
The automatic extension applies only to the filing of the return; all tax payments must be submitted by the 15th day of the 3rd month to avoid penalties.
Minimum Franchise Tax requirement
Most qualified corporations are required to pay at least the $800 minimum franchise tax unless it is their first taxable year.
Estimated tax credit applies
Any prior estimated tax payments submitted using Form 100-ES during 2013 are credited toward the current year’s balance due.
Underpayment penalties
If the amount paid by March 17, 2014, is insufficient, the Tax Board will assess penalties and interest on the unpaid portion beginning from the original due date.
Step-by-Step (High Level)
Follow these general steps to correctly calculate and submit your Form 3539 (2013) payment for a corporate tax extension in California.
Estimate your total income tax liability
Use your prior year’s return, current financial records, and expected taxable income to estimate your total franchise tax and income tax due for the 2013 tax year.
Subtract payments already made
Calculate the total of estimated payments made in 2013 using Form 100-ES, along with any credits, withholding, or overpayments applied from the prior year.
Determine what to pay with Form 3539
Subtract your total payments from your estimated liability to calculate the extension payment; this amount must be paid by March 17, 2014.
Complete Form 3539
Accurately enter the tax year dates, California Secretary of State file number, federal employer identification number, and select the appropriate return type, such as Form 100, Form 100S, or Form 100W.
Make the payment
Submit payment via check, credit card, or electronic transfer through supported tax software by the 15th day of the 3rd month of the taxable year.
Keep a copy
Retain a copy of Form 3539 along with payment proof such as a cancelled check, credit card confirmation, or bank statement for your records.
File the return by the extended deadline
Submit your completed franchise tax return by September 15, 2014, and apply the extension payment on the appropriate line of the return.
Common Mistakes and How to Avoid Them
These are some of the most frequent errors made when using Form 3539 (2013), along with tips on how to avoid each issue.
Confusing extension to file with extension to pay
To avoid penalties, pay your full estimated tax by March 17, 2014, even if you plan to file later using the automatic extension.
Underpaying tax owed
Ensure you calculate your estimated tax liability accurately; paying only the $800 minimum may lead to interest and underpayment penalties if your actual liability is higher.
Submitting Form 100-ES instead
Use Form 3539 specifically for extension payments and not Form 100-ES, which is only intended for quarterly estimated tax payments during the year.
Using incorrect business information
Verify all identifying information, including the California Secretary of State file number, tax year dates, and the correct return type, before submission.
Sending a payment when none is due
If prior estimated tax payments already satisfy your liability, do not submit Form 3539 or a duplicate payment that could require a refund.
Missing the 15-day rule
Submit payment no later than the 15th day of the 3rd month (March 17, 2014, for calendar-year filers) to ensure the extension is valid and penalties are avoided.
Not filing after extension
Even with a valid extension payment, failure to file your return by September 15, 2014, could result in suspension or forfeiture of your business status.
What Happens After You File
Once the California Franchise Tax Board processes your Form 3539 (2013) payment, the amount is credited as an extension payment for that specific tax year. If you overpaid, the excess may be refunded or applied to your next estimated tax liability. However, if you underpaid, penalties and interest will accrue from the original due date. Corporations that fail to file the required return by the extended due date risk losing good standing with the Secretary of State and may face suspension or forfeiture. Always keep documentation for audit or compliance purposes.
FAQs
Can a newly formed corporation skip the $800 minimum franchise tax for 2013?
Yes, if it was your first taxable year, your corporation was not required to pay the minimum franchise tax, but you still needed to pay any tax based on taxable income.
Is Form 3539 used by limited liability companies or only corporations?
Form 3539 (2013) is primarily for C Corporations, S Corporations, and exempt organizations; limited liability companies typically use Form 568 for their filings.
Does a California S Corporation need to file Form 3539 if no tax is owed?
No, if 100% of your tax liability has been covered through estimated tax payments, credits, or withholding, you do not need to file Form 3539.
Can I apply a Form 3539 overpayment to next year’s taxes?
Yes, overpayments made with Form 3539 may be applied toward your next tax year’s estimated taxes or refunded, depending on your election on the franchise tax return.
What happens if a corporation misses the extension deadline for filing?
If a return is not filed by the extended due date, the California Franchise Tax Board may assess penalties, and the Secretary of State may suspend or forfeit the business entity’s status.
