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Changes to 2000 Forms

2000 Updates to Form 100S Booklet

Revision Date: 04/28/2004

Revision Details: Revisions to Form 100S Corporation Tax Booklet, Schedule B/C/D/H (100S) Pages 27; Instructions for Schedule H(100S), Page 28: Flat Form 100S, Side 3; and Package X, Page 157 (Schedule H only, no Instructions).

The Internet versions of the form and instruction have been revised. These revisions are due to the California Court of Appeal ruling that found the R&TC Section 24402 deduction unconstitutional, the form and instructions have been revised to reflect the court decision rules. These changes may increase or decrease the corporate tax liabilities.

  • Schedule H (100S), Page 27, all of Part II

It should read:

Shading all Part II and Part III of Schedule H (100S).

  • Add What's Changed to instructions for Schedule H (100S) Page 28, column 1

It should read:

What's Changed

Forms, Schedules, and instructions impacted by the court decision in Farmer Bros. Co. v. Franchise Tax Boar (2003) have been revised to disallow any deduction taken based on R&TC Section 24402. In Farmer Bros. Col. V. Franchise Tax Board (2003) 108 Cal App 4th, 134 Cal Rptr. 2nd 390, the California Court of Appeal found that the R&TC Section 24402 deductible dividend provision discriminated against interstate commerce in violation of the Commerce Clause of the United States Constitution. R&TC Section 24402 provided for a deduction to the extent that the dividend payer was taxable in California. A statute that is held to be unconstitutional is invalid and unenforceable. Therefore, the deduction is not available.

Forms and instructions impacted by the court decision in Ceridian v. Franchise Tax Board (2000) have been revised to disallow any deduction taken based on R&TC Section 24410. In Ceridian v. Franchise Tax Board (2000) 85 Cal.App.4th 875, the Court of Appeal has determined that R&TC Section 24410, which provides a limited deduction for dividends received from an insurance company, is unconstitutional. As such, the statute is invalid and unenforceable. Therefore, the deduction is not available.

  • Schedule H (100S) Instructions, Page 28, Part II and Part III, are deleted in full.
  • Schedule H (100S) Instructions, Page 28, Part II and Part III, explanation added:

It should read:

Part II has been deleted due to the Farmer Bros. Co. v. Franchise Tax Board decision (2003). See What's Changed paragraph.

Part III has been deleted due to the Ceridian v. Franchise Tax Board decision (2000). See What's Changed paragraph.

  • Schedule H (100S) Instructions, Page 28, column 2, Part IV, 2nd paragraph:

It should read:

In no event will a R&TC Section 24411 deduction be allowed with respect to a dividend which was eliminated under R&TC Section 25106.

A revised copy is available to download - April 28, 2004.

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