Tax News
SMLLC 19254 Fees Misapplied

FTB Archive Disclaimer:  Archived content is not current and may contain broken links. It remains online for historical reference or research. The search function above allows you to search archived and current content separately. If you need archived content in a different format, contact us.

October 17, 2014

We discovered that the Collection Cost Recovery Fee and Filing Enforcement Fee under Revenue and Taxation Code Section 19254 were misapplied to certain single member limited liability companies (SMLLCs). We determined that the Collection Fee and Filing Enforcement Fee should not be imposed on SMLLCs treated as disregarded entities for tax purposes.

The fee amounts of the Collection Fee and Filing Enforcement Fee vary by year. Multiple member LLCs or LLCs treated as corporations are not affected. SMLLCs will be identified based on information from their California Form 568, Limited Liability Company Return of Income. We will mail affected SMLLCs a letter indicating their eligibility for a refund, with a refund warrant to follow. We anticipate that refunds, repayments, or credits for affected SMLLCs will be completed over the next several months.

We are also abating any unpaid Collection and Filing Enforcement Fees applied to SMLLCs treated as disregarded entities. Those SMLLC taxpayers identified by us will receive a letter from us indicating the penalty was abated and their account adjusted.

Is there something wrong with this page?

Help us improve our website

Don't include social security numbers or other personal/confidential information.


You are leaving

We do not control the destination site and cannot accept any responsibility for its contents, links, or offers. Review the site's security and confidentiality statements before using the site.

If you have any issues or technical problems, contact that site for assistance.

Ahora está saliendo de

Nosotros no controlamos el sitio web al que se destina y no podemos aceptar ninguna responsabilidad por su contenido, enlaces, u ofertas. Revise las declaraciones de seguridad y confidencialidad del sitio antes de usar el sitio. Si tiene algún problema en general o técnico, comuníquese con ese sitio para obtener asistencia.

Si tiene algún problema en general o técnico, comuníquese con ese sitio para obtener asistencia.