California partnership returns may be filed electronically using the State of California Franchise Tax Board Electronic Filing Program. The California program is independent of the federal program, therefore, the California electronic file is sent directly to the California Department of Revenue (hereafter referred to as "FTB"). The FTB uses the same Electronic Filer Identification Number (EFIN) assigned by the IRS for filing federal returns electronically.
California Electronic Filing Procedural Steps
California Electronic Filing Election
Select "Yes" on the Electronic Filing worksheet, State Electronic Filing Options section, California field if you wish to file the California return electronically. This election can also be made on federal Electronic Filing worksheet, General section, File all states electronically field or on a global basis by making an entry in the Return Configuration Set. If the return is disqualified from electronic filing, diagnostic messages will be issued stating the reason(s) for disqualification. If a diagnostic message cannot be corrected (i.e., an exclusion from California electronic filing) and electronic filing is still desired for the federal return, users can turn off electronic filing for California in one of two ways:
select "No" on the Electronic Filing worksheet, State Electronic Filing Options section, California field OR
Enter "N" on federal Electronic Filing worksheet, General section, File all states electronically field.
Creating, Releasing and Transmitting the California Electronic File
The California electronic return may be created, released and transmitted simultaneously with the federal electronic file or separately. Although the federal return must still be selected for electronic filing, an entry may be made on federal Electronic Filing worksheet, General Information and Qualifications section, Not Transmit Federal Return or Extension field indicating not to electronically transmit the federal return. Regardless of which method is selected, the file containing the California electronic return will be transmitted to the FTB Center where the data will subsequently be retrieved by the Electronic Filing Program.
California Acknowledgment
The presence of an electronically filed state return will be indicated by the appearance of the state's standard two letter postal abbreviation in the State column of the Electronic Filing Status system.
Once the FTB has retrieved the state tax data, an acknowledgment is issued indicating acceptance or rejection. If you are a service bureau customer, CCH Axcess Tax will notify you of these acknowledgments by mailing you a daily list of acknowledged returns. Remote entry and in-house customers may check on acknowledgments by looking at the Electronic Filing Status system. You may view this information when entering the Electronic Filing Status system in the State Date and State Status columns.
Form 8453-P/8453-LLC
Returns eligible for California electronic filing will have Form 8453-P/8453-LLC, e-file Return Authorization, included with the completed return. After a qualified electronic return has been prepared, the Form 8453-P/8453-LLC should be reviewed thoroughly and presented to the partner(s) for explanation and signature. Signatures are required of a partner/member and the ERO. If the ERO is not the paid preparer, the paid preparer must also sign the form. Form 8453-P/8453-LLC is to be signed and dated BEFORE the return is transmitted to the FTB.
Original Forms 8453-P/8453-LLC are not required to be sent to the FTB, but must be retained by the ERO on the ERO's business premises for a period of three years from the date the return was filed. The FTB requires the forms to be accessible and available at any time for inspection and examination by department officials. Each time a new file for a qualified electronic California return is created (using the Export function), a California Form 8453-P/8453-LLC will be printed.
Corrections to Form 8453-P/8453-LLC
If the electronic return preparer changes the electronic tax data after Form 8453-P/8453-LLC has been signed by a partner/member, but prior to transmitting the return, a new Form 8453-P/8453-LLC must be prepared. However, a new Form 8453-P/8453-LLC is not required if only non-substantive changes are made (e.g., transposition errors, misplaced entries or spelling errors). These changes may be made on the face of the signed Form 8453-P/8453-LLC and initialed by the person making the changes. These changes should also be made to the return in CCH Axcess and the return reprocessed for electronic filing.
Other California Electronic Filing Information
Retransmissions
In the event that the California return is rejected, it is possible to retransmit the return. The same procedures for the initial transmission of an electronic return also apply when retransmitting the return.
If the federal return has been rejected and should not be retransmitted to the IRS, check the federal Electronic Filing worksheet, General section, Not Transmit Federal Return or Extension field. This entry causes the California return to be processed through the electronic filing status system without changing the rejected federal return to qualified status.
The electronic filing status system will not process an electronic return if it has already been accepted or is still in transmitted status. If one of these conditions apply for an exported return, a message will be issued when opening the electronic filing program in CCH Axcess.
Third Party Processing
This option is available to allow electronic returns created with CCH Axcess to be transmitted through a third party other than CCH Axcess. For these returns, an entry must be made in the Return Configuration Set or a "Y" entered on federal Electronic Filing worksheet, General section, Transmit Electronic Return Through Third Party Other Than CCH field. For further information on the third party processing option, refer to the Federal Electronic Filing Guide, or contact CCH Axcess Electronic Filing Support.
Payment Information
If the amount due on Form 565 or 568 will be made by EFT, check the Federal, General, Basic Data worksheet, Direct Deposit / Electronic Funds Withdrawal section, Direct debit any amount due field. Also enter the state code, if applicable. This entry will affect the filing address and instructions only.