New e-file Requirement for Business Entities – FTB CA

Greetings,

As a reminder, Assembly Bill 2754 was into law September 19, 2014.  AB 2754 requires that beginning January 1, 2015, for taxable years beginning on or after January 1, 2014, any business entity that files an original or amended tax return prepared using tax preparation software is required to electronically file (e-file) their return with us unless a waiver is obtained for the following reasons:

• Technology constraints – the inability of the tax preparation software used by a taxpayer to electronically file the return due to the inadequacy of the software or the complex nature of the return,
• Where compliance would result in undue financial burden, or
• Circumstances that constitute reasonable cause and not willful neglect.

Waiver requests may be submitted directly to us by a simple, online fillable form that will be available on our website beginning January 2, 2015.   To ease the transition to e-filing, we are developing a wealth of helpful information.  We plan to make the following available on our website soon:

• Frequently asked questions (FAQs) about the law.
• An e-file tutorial to help preparers set up and manage their e-file office processes.
• Links to other business e-file information.

If you have questions about this important new law, please contact our Business e-file Coordinator at business.e-file.coordinator@ftb.ca.gov.  For more information go to ftb.ca.gov and search for business e-file.  Thank You