Maybe you had enough of living in the Golden State, or maybe you decided to close up shop and start a new business serving bubble tea on Venice Beach. Whatever your reasons are for dissolving your CA business, it's important to let the California Franchise Tax Board (FTB) know by indicating your tax return is a final return.
Forgot to mark this return as the final return? Don't worry, it's happened to the best of us.
Here is what you do:
Don't panic.
Write a letter to the California Franchise Tax Board (FTB) to be signed by the taxpayer.
The letter should ideally be written on company letterhead and should contain the following points:
Company name, company ID number, entity type
An error was made on [company's name] [year of return] tax form [tax form number]. The error is that [company's name] [year of return] tax form [tax form number] was not marked as the final return. For example: An error was made on BestMerch Inc.'s 2021 tax form 100S. The error is that BestMerch Inc.'s 2021 tax form 100S was not marked as the final return.
[Company name] was dissolved on [insert correct year and date] and therefore the final year for [company name] was [insert correct year].
No business was conducted by [company name] in CA after [insert correct year and date].
Request for the CA FTB to update their records that the [company name] [insert correct year] tax return is the final tax return for the business.
Provide a phone number and address and request that the FTB contact you to confirm that this letter has been received and processed.
Signature by owner, officer, or power of attorney. Printed Name, Title of signer.
Transmit this letter to the California FTB by choosing any of the options below:
Online: Go to "my FTB account" on the CA FTB website and upload the letter.
Fax: Fax the letter to 916-855-8015.
Mail: Mail the letter to Franchise tax board P.O. Box 942857 Sacramento CA 94257-0500