Partnership Level Tax? Only after Centralized Federal Partnership Audit December 2019 Tax News
The Partnership Level Tax (PLT) line on forms FTB 565 or FTB 568 allows partnerships and LLCs to report to the FTB changes or corrections made by the IRS under the centralized partnership audit regime. We first added the line on our 2018 tax forms.
During the 2019 filing season, we reached out to over 800 Partnerships and LLCs that populated the PLT line. If we found that the PLT line was improperly populated, we made corrections before we completely processed the returns to ensure incorrect bills or overpayments would not be sent.
Beginning with the 2020 filing season, we will no longer reach out to these entities when they populate the PLT line. Instead, we will process these returns through our normal channels and, if applicable, we will issue bills for any underpayment of the self-assessed PLT.
Refer to our Partnership Tax Booklet (FTB 565) or Limited Liability Company Tax Booklet (FTB 568) for more information on how to report the results of a centralized federal partnership audit to California.
We plan to hold an interested party meeting in 2020 for the purpose of determining appropriate de minimis partner reporting and payment requirements.