Chat with an FTB Representative

Changes to 2008 Forms

Updates to the 568 Booklet on 09/01/2010 -- Limited Liability Company Tax Booklet

We replaced text on the 568 Booklet on Page 3, Column 1, What's New - Installment Sales paragraph

Previous Version

For taxable years beginning on or after January 1, 2009, buyers are required to withhold on each installment sale payment if the sale of California real property is structured as an installment sale.

Revised Version

For installment sales occurring on or after January 1, 2009, buyers are required to withhold on each installment sale payment if the sale of California real property is structured as an installment sale.

Reason for the changes

AB 3078 was chaptered on 9/28/08 and amended R&TC Section 18662(i)(1) regarding installment sales. This revision will make the installment sales paragraph in agreement with the language in AB 3078.

Impact

There is no tax impact. This revision will allow buyers to withhold for installment sales occurring beginning on or after January 1, 2009, instead of for taxable years beginning on or after January 1, 2009.


We replaced text on:

  1. 568 Booklet, Page 59, Side 1, Column 2, Amount of Payment paragraph
  2. Form 3536, Side 1, Column 2, Amount of Payment paragraph

Previous Version

Amount of Payment – This is the amount you expect to enter on 2008 Form 568, Side 1, line 2. Use the chart located in the 2008 Form 568, Limited Liability Company Tax Booklet, to estimate the LLC fee.

Revised Version

Amount of Payment – This is the amount you expect to enter on 2009 Form 568, Side 1, Limited Liability Company fee line. As the fee owed for 2009 may not be known by the 15th day of the 6th month of the current taxable year, you may estimate your 2009 fee by completing the prior year LLC Income Worksheet, included in the 2008 Form 568 Booklet. Use amounts of income expected for the 2009 taxable year to estimate the 2009 fee amount.

Reason for the changes

Additional instruction is being added to inform taxpayers how they can determine their estimated LLC fee. This will help taxpayers to self comply.

Impact

There is no tax impact.


Updates to the 2008 568 Booklet -- Limited Liability Company Tax Booklet

The revised Internet version is available for download as of 01/26/2009.

Revision Details:

Schedule K-1’s (568) instructions have reference to the federal Form 4684, Casualties and Thefts. At the time we finalized the Schedule K-1 (568), the only available version of the federal Form 4684 was dated 06/05/08 (Draft) without any major changes. The federal did not finalize this Form until 01/09/09.

The 2008 federal Form 4684 has six new lines. Therefore, we are revising the Schedule K-1 (568) instructions to include the correct federal line reference.

  • 568 Booklet, page 50, column 1, bullet 6
  • Schedule K-1 (568) Instructions form, page 6, column 1, bullet 6

    Previously read:

    • Net gain or loss from involuntary conversions due to casualty or theft. The LLC will provide a schedule that shows the California amounts to be entered on federal Form 4684, Casualties and Thefts, Section B, Part II, line 34, column (b)(i), column (b)(ii), and column (c).

    Revised to:

    • Net gain or loss from involuntary conversions due to casualty or theft. The LLC will provide a schedule that shows the California amounts to be entered on federal Form 4684, Casualties and Thefts, Section B, Part II, line 40, column (b)(i), column (b)(ii), and column (c).

The incorrect line reference to federal Form 4684 may cause confusion and may cause the taxpayer to under report/over report its income, which would result in an incorrect tax liability.

This revision to the instructions will provide the correct line reference, which will help the taxpayer to correctly report its tax liability.

Back to Tax Form Changes for 2008