Amnesty does not apply to any penalties imposed by the Secretary of State.
Calendar-year limited partnerships that want to formally cancel their registrations may do so on or before January 14, 2005, with a 2004 effective date that will avoid incurring a new minimum tax liability for 2005. The LP can then apply for amnesty and pay the annual tax and interest for unpaid years prior to 2003.
A corporation or an LLC that has a balance due from a pre-2003 taxable year, but has not been suspended by the FTB, may file timely dissolution paperwork to stop the clock on the $800 annual/minimum tax. Then the entity may apply for amnesty for unpaid penalties as part of the tax clearance process.
The FTB has established a special procedure so a corporation or an LLC that has been suspended may dissolve with a 2004 effective date and have penalties forgiven in amnesty. This is a different procedure than a normal dissolution because of the requirements to revive the entity prior to dissolution. Here are the steps:
- Prepare Form FTB 3555, Request for Tax Clearance - Corporations, or Form FTB 3555L, Request for Tax Clearance - Limited Liability Companies.
- Write "Amnesty" in large red letters across the top.
- Mail Form FTB 3555 (or 3555L) to the FTB's Tax Clearance Unit on or before December 31, 2004. Do not send anything to the SOS. This is a different procedure than a regular dissolution. The address for the Tax Clearance Unit is: MS-C4, Franchise Tax Board, P.O. Box 1286, Rancho Cordova, CA 95741
- FTB will send the revivor requirements to the corporation/LLC.
- Prepare and file tax returns and do not pay any penalties or interest.
- File an amnesty application between February 1 and March 31, 2005, and pay remaining liabilities by May 31, 2005.
- File dissolution documents with SOS in 2005. FTB will set the effective date of the dissolution date at 2004, provided returns are filed and payments made during amnesty.
Caution: Amnesty does not apply to 2003 and 2004 taxable years.