Franchise Tax Board

Paperless Schedules K-1 (565 or 568) Frequently Asked Questions

  1. Can I e-file the California Partnership Return, Form 565, or Limited Liability Company Return, Form 568?
  2. I provide the IRS my 1065's in a PDF format. Will FTB accept paperless K-1s in a PDF format?
  3. Who can send Paperless (CD or Diskette) Schedules K-1?
  4. What types of media can I use to submit paperless Schedules K-1 (565 or 568)?
  5. We amended Form 565 or Form 568; can we send the amended Schedules K-1 (565 or 568) via CD or Diskette?
  6. Can fiscal year filers send Schedules K-1 (565 or 568) via CD or Diskette?
  7. Should I send a specific form with the CD or Diskette?
  8. Can I test my records prior to sending them to FTB?
  9. Can I use 2006 K-1 TestWare on 2007 Schedule K-1 files?
  10. If I can't use K-1 TestWare, is there anything I need to do before submitting paperless Schedules K-1 (565 or 568)?
  11. How do I read the error report?
  1. Can I e-file the California Partnership Return, Form 565, or Limited Liability Company Return, Form 568?

    Yes. In January 2007, we began accepting Forms 565 or 568 and their attached schedules, including Schedule K-1, for taxable years beginning on or after January 1, 2006. For more information about our business e-file program refer to FTB Pub. 1346B, Business e-file Guide for Software Developers and Transmitters, or search for business e-file.

  2. I provide the IRS my Schedules K-1 in a PDF format. Will FTB accept paperless K-1s in a PDF format?

    No. We accept only standard fixed length formats as described in FTB Pub. 1062.

  3. Who can send paperless (CD or Diskette) Schedules K-1?

    Any partnership or limited liability company that is required to file Forms 565 or Form 568 and their attached Schedules K-1 (565 or 568) with FTB.

  4. What types of media can I use to submit paperless Schedules K-1 (565 or 568)?

    There are two types:

    • CD-ROM, and
    • Diskette.
  5. We amended Form 565 or Form 568; can we send the amended Schedules K-1 (565 or 568) via CD or Diskette?

    Yes, as long as the amended Schedules K-1 are for taxable years 2006 or 2007.

  6. Can fiscal year filers send Schedules K-1 (565 or 568) via CD or Diskette?

    Yes, as long as the taxable year begins in 2006 or 2007.

    Note: The taxable year beginning determines which record layout and K-1 TestWare to use. For example: If the taxable year beginning is in 2006, use the 2006 record layout and K-1 TestWare.

  7. Should I send a form with the CD or Diskette?

    Yes. Form FTB 3604 must accompany the CD or diskette to ensure proper processing of the paperless schedules. Prepare a separate form FTB 3604 for each CD or diskette and for different types of Schedules K- (565 or 568).

  8. Can I test my records prior to sending them to FTB?

    Yes. We developed K-1 TestWare to help you prepare error-free Schedule K-1 (565 or 568) files that will pass our edit program.

  9. Can I use 2006 K-1 TestWare on 2007 Schedule K-1 files?

    No. Use 2006 K-1 TestWare for only taxable years (TY) beginning in 2006. Use 2007 K-1 TestWare for only taxable years beginning in 2007. This ensures you're using the correct record layout.

  10. If I cannot use the K-1 Testware, is there anything I need to do before submitting Schedules K-1 (565 or 568)?

    If you can't use the K-1 TestWare, you need to:

    • Submit a test file (before submitting your first production file) to ensure process compatibility.
    • Include at least twelve blocks of data in your test file.

    Generally, we will give you the test results within two weeks.

  11. How do I read the error report?

    Review the Edit Program Report in FTB Pub. 1062 for a description of each field on the report.