Fill Your California 3539 Form

The California Form FTB 3539 is used by corporations and exempt organizations to request an automatic extension for filing their tax returns. When filing this form, several other documents may also be required or helpful. Below is a list of forms and documents commonly used alongside Form FTB 3539.

• Form 100: This is the California Corporation Franchise or Income Tax Return. Corporations must file this form to report their income and calculate their tax liability.
• Form 100W: This form is specifically for corporations that qualify as a water's edge election. It allows them to report income and taxes based on their income sourced only from within the United States.
• Form 100S: This is the California S Corporation Franchise or Income Tax Return. S corporations use this form to report their income, deductions, and credits.
• Form 199: This is the California Exempt Organization Annual Information Return. Nonprofit organizations use it to report their income and maintain their tax-exempt status.
• Form 109: This form is used by exempt organizations to report business income. It is essential for organizations that earn income unrelated to their exempt purpose.
• Tax Payment Worksheet: This worksheet helps corporations and exempt organizations calculate their tentative tax and determine if any tax is due when filing Form FTB 3539.
• Electronic Funds Transfer (EFT) Documentation: Corporations that meet certain criteria must use EFT for payments. Documentation regarding EFT requirements may be necessary.
• Payment Voucher: If tax is due, a payment voucher should accompany the tax payment. It is essential for ensuring that payments are properly processed.
• FTB Publication 3817: This publication provides information on the Electronic Funds Transfer Program and may be useful for corporations required to use EFT.
• California Secretary of State (SOS) Status Confirmation: Corporations should verify their good standing with the SOS to ensure they can file for an extension without issues.

Each of these documents plays a vital role in the tax filing process for corporations and exempt organizations in California. Understanding their purposes can help ensure compliance and avoid penalties.

Misconceptions about the California 3539 form can lead to confusion for corporations and exempt organizations. Here are seven common misunderstandings:

• 1. The form is only for corporations. Many believe that only corporations need to use Form FTB 3539. However, exempt organizations also need to file this form if they owe tax.
• 2. Filing the form extends the time to pay taxes. Some think that submitting Form FTB 3539 allows them to delay tax payments. In reality, the form provides an extension to file, not to pay taxes. Payment must still be made by the original due date.
• 3. You must always send a payment with the form. There is a misconception that a payment is required with Form FTB 3539. If no tax is owed, there is no need to file the form or send a payment.
• 4. The extension is automatic for all organizations. Not all organizations automatically qualify for an extension. Only those in good standing with the Franchise Tax Board (FTB) and who meet specific criteria are eligible.
• 5. The form is only for calendar year filers. Some individuals think that Form FTB 3539 is applicable only to calendar year filers. In fact, it is also relevant for fiscal year filers, with different due dates based on their tax year.
• 6. You can ignore the form if you have already filed. Some may believe that if they have filed their return, they do not need to worry about Form FTB 3539. However, if tax is owed and not paid on time, the form still applies.
• 7. The form can be filed late without penalties. There is a common belief that filing Form FTB 3539 late will not incur penalties. In reality, failing to file or pay on time can result in late fees and interest charges.

Understanding these misconceptions can help ensure compliance with California tax regulations and avoid potential penalties.

How to Use California 3539

After completing the California Form FTB 3539, you will be ready to submit it along with any required payment. Make sure to check your entries for accuracy before mailing the form to avoid any penalties or issues with your tax return.

1. Obtain the California Form FTB 3539. You can download it from the California Franchise Tax Board website or get a physical copy.
2. Fill in the taxable year at the top of the form. Specify the year you are filing for.
3. Enter your California corporation number and Federal employer identification number (FEIN) in the designated fields.
4. Provide the name of your corporation or exempt organization.
5. Fill in your address, including city, state, and ZIP code. If you use a private mailbox (PMB), include that number in the designated field.
6. Indicate the type of form you are filing by checking the appropriate box (Form 100, Form 100W, Form 100S, Form 109, or Form 199).
7. Complete the Tax Payment Worksheet on the form:
• Line 1: Enter the total tentative tax, including any alternative minimum tax, if applicable.
• Line 2: List your estimated tax payments, including any prior year overpayment applied as a credit.
• Line 3: Calculate the tax due by subtracting line 2 from line 1. Enter this amount here and on the main form.
8. If you owe tax, prepare a check or money order for the tax due. Write your California corporation number and "2003 FTB 3539" on it.
9. Mail the completed form and payment (if applicable) to the address provided: Franchise Tax Board, PO Box 942857, Sacramento, CA 94257-0551.