What Form 3539 (2017) Is For
Form 3539 (2017) is a payment voucher issued by the California Franchise Tax Board for corporations and exempt organizations that need more time to file their income tax returns but owe tax by the original deadline. It allows businesses to submit payment on time while taking advantage of California’s automatic extension to file. This form does not grant a filing extension; it is strictly for making a timely tax payment using the correct business tax forms and identification numbers.
When You’d Use Form 3539 (2017)
You’d use Form 3539 (2017) in specific scenarios where you owe tax but cannot submit your complete return on time.
Original due date approaching
You are nearing the filing deadline for your business income tax return, such as Form 100 or CA Form 199, and you need more time to finalize the paperwork, but still owe tax.
Owe tax but need more time to file
You have not fully paid your estimated tax liabilities for the taxable year and require an automatic extension to file without incurring penalties.
Part of a combined reporting group
Your corporation is part of a combined group return, and the designated key corporation is responsible for submitting Form 3539 on behalf of the group.
Meeting EFT thresholds
Your business has met California’s electronic funds transfer thresholds and is required to make extension payments through an approved electronic method.
Exempt organizations filing early
You are an exempt organization using Form 199 and wish to pay the $10 filing fee before submitting the California Exempt Organization Annual Information Return.
Key Rules or Details for Tax Year 2017
There are several important rules and tax year-specific details to know before submitting Form 3539 (2017).
A six-month extension applies to filing only
The automatic extension allows more time to file the tax return, but does not extend the due date for paying any income tax owed.
The minimum franchise tax applies
Corporations doing business in California must pay at least the $800 minimum franchise tax, unless they are exempt as a newly formed or qualified entity.
Electronic payment required after threshold
If your corporation has made a tax payment exceeding $20,000 or has a total tax liability over $80,000, you are required to pay electronically.
Penalty waiver with 90% rule
The Franchise Tax Board may waive late payment penalties if you pay at least 90% of the tax due by the original deadline and meet minimum tax requirements.
Exempt organizations have special rules
Form 3539 may be used to submit the $10 fee early, depending on your filing entity and applicable return, such as Form 199 or Form 109.
Step-by-Step (High Level)
Filing Form 3539 (2017) follows a structured process that ensures your payment is submitted correctly and on time.
Determine your original due date
Identify the correct due date based on your entity type; for example, Form 100 is due April 17, 2018, while CA Form 199 is typically due May 15, 2018.
Complete the Tax Payment Worksheet
Use the worksheet from the instructions to calculate your tentative tax amount, subtract estimated tax payments, and determine the payment due.
Adjust for expected NOL carrybacks
If you plan to carry back a net operating loss using Form FTB 3593, reduce your extension payment accordingly, but remember that interest still accrues.
Determine your payment method
Check whether you meet the electronic funds transfer thresholds, and select Web Pay, EFT, electronic funds withdrawal, or credit card if required.
Prepare and complete Form 3539
Fill in your corporation number, federal employer identification number, Secretary of State file number, business name, and payment amount.
Mail your payment (if not paying electronically)
Send the completed form and your check or money order to the Franchise Tax Board by the original due date.
Keep the worksheet for records
Retain the worksheet in your records as backup for your income tax return and for audit documentation.
File your return by the extended deadline
Complete and submit your federal return or California business income tax return by October 15, 2025, to maintain the automatic extension.
Common Mistakes and How to Avoid Them
These frequent mistakes can lead to penalties or delays, but each has a straightforward solution.
Confusing extension to file with extension to pay
You must pay your tax liability by the original due date, since the automatic extension only applies to filing the income tax return, not to making payments.
Filing Form 3539 when no payment is due
Do not file the form if your estimated payments fully cover your tax liabilities; filing the return by the extended deadline is sufficient.
Submitting Form 3539 after paying electronically
Do not send the paper form if you have already paid using Web Pay, electronic funds transfer, or another approved electronic method.
Omitting the $800 franchise tax
Always include at least the $800 minimum franchise tax when calculating tentative tax, unless your corporation qualifies for a first-year exemption.
Ignoring mandatory EFT requirements
Once you meet the threshold for electronic payment, all future tax payments must be made electronically to avoid a 10% non-compliance penalty.
Leaving out required business identifiers
Ensure you enter your corporation number, federal employer identification number, and Secretary of State file number correctly to avoid processing issues.
What Happens After You File
After you submit Form 3539 (2017) and make your extension payment, the Franchise Tax Board will credit the payment to your account. Electronic payments, including Web Pay and EFT, typically post within a few business days, while mailed checks may take longer to process. You will not receive a confirmation, so keep a copy of your canceled check or electronic receipt.
Interest will continue to accrue on any unpaid balance, and your income tax return must still be filed by the extended deadline to avoid penalties.
FAQs
Do I still need to file Form 3539 (2017) if I owe no additional tax for the year?
No; if your estimated tax payments fully cover your business income tax return liability, you do not need to file Form 3539 (2017).
Is Form 3539 (2017) the same as a filing extension request?
No, California does not grant an automatic extension to file your income tax return. Form 3539 (2017) is only used to pay tax owed by the original deadline.
Can Form 3539 (2017) be submitted electronically through the Internal Revenue Service?
No, the California Franchise Tax Board issues this form and is unrelated to federal extension forms such as Form 7004 used by the Internal Revenue Service.
What forms are affected if I use Form 3539 (2017) to make a payment?
You may use it in connection with California business tax forms such as Form 100, Form 100S, CA Form 199, or Form 109, depending on your entity type and tax-exempt status.
Does Form 3539 (2017) have any relevance to international tax compliance or federal laws?
No, Form 3539 (2017) applies only to California state tax payments and is unrelated to federal laws, such as the Foreign Account Tax Compliance Act or the Bank Secrecy Act.
