Beginning January 2015, the state of California mandated that all business returns be electronically filed. The law applies to preparers who file the return on behalf of a business entity.
If the preparer can't electronically file the return, they must complete a waiver online. Once the waiver has been completed, the return can be mailed to the Franchise Tax Board. If a waiver isn't completed within fifteen days of the return being filed, the state will contact the preparer.
Frequently asked questions
Are combined report return filers required to file a separate waiver for each entity in the combined report?
If I file multiple business entity returns in a year, do I need to submit a waiver request for each entity?
For tax year 2015, is an electronic copy of the Federal 1120-C and 1120-H included with the CA state filing?
Beginning in tax year 2015, California electronic filing is now allowed with a Federal 1120-C or 1120-H return. Attach the entire Federal 1120-C return as a PDF with the description "Federal Return" to the California electronic return.
In prior years, the federal Form 1120-C, U.S. Income Tax for Cooperative Associations, and Form 1120-H, U.S. Income Tax for Homeowners Associations, weren't supported by the IRS for electronic filing, which is why a PDF copy of the return was required to be attached to the California return in order to be filed with the state.