(a) For taxable years beginning on or after January 1, 2014, if an acceptable return of a business entity was prepared using a tax preparation software, that return shall be filed using electronic technology in a form and manner prescribed by the Franchise Tax Board.
(b) For purposes of this section:
(1) “Acceptable return” means any original or amended return that is required to be filed pursuant to Article 2 (commencing with Section 18601), Section 18633, Section 18633.5, or Article 3 (commencing with Section 23771) of Chapter 4 of Part 11, other than the return for unrelated business taxable income required by Section 23771.
(2) “Business entity” means a corporation, including an “S” corporation, an organization exempt from tax pursuant to Chapter 4 (commencing with Section 23701) of Part 11, a partnership, or a limited liability company.
(3) “Tax preparation software” means any computer software program used to prepare an acceptable return or for use in tax compliance.
(4) “Electronic technology” includes, but is not limited to, the Internet, cloud computing, or an electronic information delivery system.
(5) “Technology constraints” means an inability of the tax preparation software used by a business entity to electronically file the acceptable return as required by this section as a result of the complex nature of the return or inadequacy of the software.
(c) Any business entity required to file a return electronically under this section may annually request a waiver of the requirements of this section from the Franchise Tax Board with respect to an acceptable return filed for a taxable year. The Franchise Tax Board may grant a waiver if it determines the business entity is unable to comply with the requirements of this section due to, but not limited to, technology constraints, where compliance would result in undue financial burden, or due to circumstances that constitute reasonable cause, and not willful neglect, as applicable with respect to the penalty imposed under Section 19171.
(d) This section applies to an acceptable return required to be filed on or after January 1, 2015.
(Added by Stats. 2014, Ch. 478, Sec. 5. (AB 2754) Effective January 1, 2015.)
Last modified: October 25, 2018