Outline
The California 3555 form, known as the Request for Tax Clearance, serves an essential function for corporations operating within the state. This form is primarily used to request a tax clearance certificate from the Franchise Tax Board (FTB), which is necessary when a corporation ceases operations or undergoes a merger. To complete the form, corporations must provide key information, including their name, California corporation number, current address, and federal employer identification number. Additionally, it requires details about the business's commencement and cessation dates, as well as the latest income period for which a California tax return has been filed. The form also addresses any IRS activity, prompting the corporation to disclose if it has been audited or is under examination by the IRS or FTB. This transparency is crucial, as the FTB will only issue a tax clearance certificate once all taxes have been paid or secured. For entities assuming tax liabilities, there are specific sections that must be completed, depending on whether the assumption is by an individual, trust, corporation, limited liability company, or limited liability partnership. Proper completion of this form ensures compliance with California tax laws and facilitates the smooth transition of business responsibilities.
Sample - California 3555 Form
Request for Tax Clearance
Certificate — Corporations
CALIFORNIA FORM
3555
FTB 3555 C1 (REV 09-2001) PAGE 1
Corporation name
Current address Phone number
()
California corporation number
Date business commenced
in California:
Date business ceased or will
cease in California:
Latest income period for which a
California tax return has been filed:
We will issue a tax clearance certificate when all taxes have been paid or secured. All returns remain subject to audit until
expiration of the normal statutes of limitation.
Please indicate the status of ANY IRS activity:
Has the IRS redetermined the corporation’s income tax
liability for any prior years that you have not previously
reported to us? ❏ Yes ❏ No
If yes, send us a copy of the Revenue Agent’s Report.
Is the IRS or the FTB currently examining the corporation
or has it notified the corporation of a pending examination?
❏ Yes ❏ No
If yes, indicate the years involved:
Current examination: __________________________
Pending examination: __________________________
Complete pages 2 and 3 of this form for an individual or other entity assumption of tax liability. Complete
page 4 for a corporation, limited liability company, or limited liability partnership assumption of tax liability.
If we are to issue the tax clearance certificate on a taxes paid basis, please check this box and provide a copy of
your final tax return.
❏
Supplemental Information. Please furnish the following information if another corporation will continue to conduct the
business in California after the merger of the original corporation.
Name of transferee California corporation number of transferee
Section of the Internal Revenue Code applicable to the transfer of
taxpayer’s business or assets: ______________
Date assets transferred to transferee
If we are to mail the tax clearance certificate to somewhere other than the corporation listed above, please complete the
following:
(We will send a copy of the tax clearance certificate to the Secretary of State.)
Name
Address
Phone number ( )
Mail completed form to: DOCUMENT FILING SUPPORT UNIT
SECRETARY OF STATE – BUSINESS FILINGS
1500 11TH STREET
SACRAMENTO CA 95814
For more information concerning this form, telephone the Franchise Tax Board at (916) 845-4124.
Assistance for persons with disabilities: We comply with the Americans with Disabilities Act. Persons with hearing or
speech impairments, call: from voice phone (800) 735-2922, or from TTY/TDD (800) 822-6268.
Federal employer identification number
Date filed:
Federal employer identification number
Please complete Section A or B below.
A. INDIVIDUAL ASSUMPTION OF TAX LIABILITY
Corporation name California corporation number
I unconditionally agree to file or cause to be filed with the Franchise Tax Board, under the provisions of the Bank and
Corporation Tax Law, all tax returns and data required and to pay in full all accrued or accruing tax liabilities, penalties,
interest, and fees due from the above named corporation at the effective date of dissolution or surrender.
My net worth (assets minus liabilities) is not less than: $ _____________________ .
(We require a detailed financial statement [PAGE 3].)
Name of individual assumer (print) Social security number
Address
Date Signature
FOR PRIVACY ACT NOTICE, SEE FORM FTB 1131.
FTB 3555 C1 (REV 09-2001) PAGE 2
Phone number ( )
B. TRUST ASSUMPTION OF TAX LIABILITY
This trust unconditionally agrees to file or cause to be filed with the Franchise Tax Board, under the provisions of the
Bank and Corporation Tax Law, all tax returns and data required and to pay in full all accrued or accruing tax liabilities,
penalties, interest, and fees due from the above named corporation at the effective date of dissolution or surrender:
(We require a detailed financial statement [PAGE 3].)
Name of trust Trust federal identification number
Address
Date Trustee’s name (print)
Trustee’s signature
Phone number ( )
Current address Phone number Federal employer identification number
()
Corporation name California corporation number
Current address Phone number Federal employer identification number
()
FINANCIAL STATEMENT FOR INDIVIDUAL OR OTHER ENTITY
Statement of Assets and Liabilities
Item
Present
value (A)
Liabilities
balance due (B)
Equity in
asset
Cash
Bank accounts
Stocks and bonds
Cash or loan value of insurance
Household furniture
Real property
Vehicles
Other assets (describe)
Federal taxes outstanding
Loans
Other (include judgements)
Net assets
(Total column A less total column B)
General Information (Please attach additional schedules if necessary.)
Net annual income Source (name of business or employer)
Banks and savings and loan accounts (names and addresses)
Description and license number of each vehicle
Stocks and bonds (name of company, number of shares, etc.)
I certify that the information above is correct to the best of my knowledge.
Assumer’s name (print) _____________________________________________________________________________________________________
Assumer’s address ____________________________________________________________ Phone number ( ) _______________________
Assumer’s signature __________________________________________________________________________ Date _______________________
FTB 3555 C1 (REV 09-2001) PAGE 3
$
Real property (brief descriptions and locations)
Corporation name Corporation number
CORPORATION, LIMITED LIABILITY COMPANY, OR LIMITED LIABILITY
PARTNERSHIP ASSUMPTION OF TAX LIABILITY
The Assumption of Tax Liability
of (1) __________________________________________________________ )
)
______________________________________________________________ ) ________________________
)
by (2) _________________________________________________________ )
)
______________________________________________________________ ) ________________________
A corporation
A corporation, limited liability company, or limited liability partnership
California Corporation number, Secretary of
State file number, or federal employer
identification number
California Corporation number, Secretary of
State file number, or federal employer
identification number
(Name of assumer) __________________________________________________ unconditionally
agrees to file with the Franchise Tax Board all tax returns and data required and pay in full all tax
liabilities, penalties, interest and fees of (1) _________________________________________
_________________________________________________________________________________; at the
effective date of dissolution or surrender of the corporation.
(2) _________________________________________
_______________________________________ _________________________________________
State of _______________________________
County of _____________________________
On ________________________________________ before me, the undersigned, a notary public in and for
said state, personally appeared_______________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s)
whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they
executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the
instrument the entity upon behalf of which the person(s) acted, executed the instrument.
WITNESS my hand and official seal.
Signature ________________________________________________________
Name __________________________________________________________
Note: LLC, LLP, and corporation assumers must provide a financial statement.
FTB 3555 C1 (REV 09-2001) PAGE 4
Exact corporation, limited liability company, or limited liability partnership name
Signature and title of officer/manager/partner/member
(typed or printed)
Printed name and title of officer/manager/partner/member
Form Information
| Fact Name | Description |
|---|---|
| Form Purpose | The California 3555 form is used to request a tax clearance certificate for corporations. |
| Governing Law | This form operates under the Bank and Corporation Tax Law of California. |
| Tax Clearance Issuance | A tax clearance certificate is issued only when all taxes have been paid or secured. |
| IRS Activity Disclosure | Corporations must disclose any IRS activity, including audits or pending examinations. |
| Assumption of Tax Liability | Sections A and B of the form allow for individual or trust assumption of tax liability. |
| Financial Statement Requirement | A detailed financial statement is required for the assumption of tax liability. |
| Mailing Instructions | Completed forms should be mailed to the Document Filing Support Unit in Sacramento. |
| Contact Information | For assistance, the Franchise Tax Board can be reached at (916) 845-4124. |
| ADA Compliance | The form complies with the Americans with Disabilities Act, offering assistance for those in need. |
Detailed Guide for Filling Out California 3555
Filling out the California 3555 form is an important step for corporations seeking a tax clearance certificate. This certificate confirms that all tax obligations have been met. The following steps will guide you through the process of completing the form accurately.
- Begin by entering the corporation name and the California corporation number at the top of the form.
- Provide the current address and phone number of the corporation.
- Fill in the Federal employer identification number (EIN).
- Indicate the date business commenced and the date business ceased or will cease in California.
- Enter the latest income period for which a California tax return has been filed.
- Check the box if you want the tax clearance certificate issued on a taxes paid basis and provide a copy of the final tax return.
- Indicate any IRS activity by answering the questions regarding redetermination or examination. If applicable, provide the years involved.
- Complete pages 2 and 3 if an individual or other entity is assuming tax liability. Use page 4 for corporations, LLCs, or LLPs.
- For supplemental information, provide the name, California corporation number, and EIN of the transferee if another corporation will continue the business.
- If the tax clearance certificate should be mailed to a different address, fill out the required name, address, and phone number.
- Review all entries for accuracy before signing and dating the form.
- Mail the completed form to the specified address: DOCUMENT FILING SUPPORT UNIT, SECRETARY OF STATE – BUSINESS FILINGS, 1500 11TH STREET, SACRAMENTO CA 95814.
Obtain Answers on California 3555
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What is the purpose of the California 3555 form?
The California 3555 form, also known as the Request for Tax Clearance Certificate, is used by corporations to obtain a tax clearance certificate from the Franchise Tax Board (FTB). This certificate confirms that all taxes owed by the corporation have been paid or secured. It is often required when a corporation is dissolving, merging, or transferring its assets.
-
Who needs to fill out the California 3555 form?
Any corporation, limited liability company (LLC), or limited liability partnership (LLP) that wishes to receive a tax clearance certificate must complete this form. Additionally, individuals or trusts assuming tax liabilities of a corporation must also fill out the relevant sections of the form.
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What information is required on the form?
When filling out the California 3555 form, you need to provide:
- Corporation name
- California corporation number
- Current address and phone number
- Federal employer identification number
- Dates related to business commencement and cessation
- Latest income period for which a California tax return has been filed
- Any IRS activity status
Completing this information accurately is crucial for the processing of your request.
-
What happens if taxes have not been paid?
If the corporation has outstanding taxes, the FTB will not issue a tax clearance certificate until all taxes are paid or secured. It’s essential to resolve any tax liabilities before submitting the form to avoid delays.
-
Can the tax clearance certificate be mailed to a different address?
Yes, if you wish for the tax clearance certificate to be sent to an address other than the corporation’s registered address, you can specify the alternate mailing address on the form. Just ensure that you provide the complete name and address details in the designated section.
-
What if there is ongoing IRS activity?
If the IRS is currently examining the corporation or has redetermined its income tax liability, you must indicate this on the form. Providing details about the years involved and submitting any relevant documentation, such as a Revenue Agent’s Report, is necessary for a complete application.
-
How can I get assistance if I have a disability?
The FTB complies with the Americans with Disabilities Act and provides assistance for individuals with disabilities. If you have hearing or speech impairments, you can call (800) 735-2922 from a voice phone or (800) 822-6268 from TTY/TDD for help.
Common mistakes
Filling out the California Form 3555, Request for Tax Clearance, can be a daunting task. Mistakes in this process can lead to delays or even denial of your tax clearance certificate. Here are seven common mistakes to avoid when completing this important form.
One frequent error is incomplete information. Many individuals fail to provide all necessary details, such as the corporation name, California corporation number, or the federal employer identification number. Each piece of information is crucial for the Franchise Tax Board to process the request accurately. Leaving out even one detail can result in significant setbacks.
Another common mistake involves incorrect dates. Applicants often misstate the date the business commenced or the date it ceased operations. Accurate dates are essential, as they help establish the timeline of tax obligations. Double-checking these dates can save time and prevent confusion later in the process.
People also tend to overlook the IRS activity section. Failing to indicate any ongoing IRS examinations or redeterminations can lead to complications. If the IRS is reviewing your corporation's tax liability, it's important to disclose this information upfront. Transparency in this area can help facilitate a smoother process.
Another misstep is neglecting to provide the financial statement when required. For individuals or entities assuming tax liability, a detailed financial statement is necessary. Omitting this can lead to an incomplete application, which may be rejected or delayed.
Additionally, many applicants forget to check the box indicating if they want the tax clearance certificate sent to a different address. This simple oversight can result in the certificate being sent to the wrong location, causing unnecessary delays in receiving important documentation.
Lastly, failing to sign the form is a common mistake that can halt the process entirely. A signature is a confirmation of the information provided and an agreement to fulfill tax obligations. Without it, the form cannot be processed, and the request for a tax clearance certificate will be denied.
By being mindful of these common mistakes, individuals and corporations can navigate the process of completing the California Form 3555 with greater ease. Attention to detail and thoroughness are key to ensuring a smooth experience when seeking a tax clearance certificate.
Documents used along the form
The California 3555 form is a crucial document for corporations seeking a tax clearance certificate. It ensures that all taxes have been paid or secured before a business can dissolve or transfer its assets. Along with this form, several other documents may be required to complete the process effectively. Below is a list of commonly associated forms and documents that facilitate the tax clearance and dissolution process in California.
- California Form 100: This is the California Corporation Franchise or Income Tax Return. Corporations must file this form annually to report their income and calculate taxes owed to the state.
- California Form 568: This form is used by Limited Liability Companies (LLCs) to report income, deductions, and credits. It is essential for LLCs to comply with state tax obligations.
- California Form 1120: This is the U.S. Corporation Income Tax Return. Corporations must file this federal form to report their income and calculate federal taxes.
- FTB 1131: This is the Privacy Act Notice. It informs individuals about how their personal information will be used and protected during the tax clearance process.
- Financial Statement: This document details the assets and liabilities of the corporation or individual assuming tax liability. It provides a clear picture of financial standing and is required for tax liability assumption.
- IRS Form 941: This is the Employer's Quarterly Federal Tax Return. It reports income taxes, Social Security tax, or Medicare tax withheld from employee's paychecks and pays the employer's portion of Social Security or Medicare tax.
- IRS Form 990: This form is used by tax-exempt organizations to provide the IRS with information about their activities, governance, and detailed financial data. It is essential for maintaining tax-exempt status.
- Certificate of Dissolution: This document is filed with the Secretary of State to officially dissolve a corporation. It confirms that the business is no longer operating and that all legal obligations have been fulfilled.
Completing the California 3555 form and its associated documents is vital for ensuring compliance with tax regulations. Each form plays a specific role in the process, helping to facilitate a smooth transition during the dissolution or transfer of corporate assets. Understanding these documents can significantly ease the burden of navigating the tax clearance process.
Similar forms
The California 3555 form, also known as the Request for Tax Clearance, shares similarities with several other documents related to tax clearance and business dissolution. Here are ten documents that have comparable purposes or functions:
- IRS Form 966: This form is used to notify the IRS of corporate dissolution or liquidation. Like the California 3555, it helps ensure that all tax obligations are settled before a business ceases operations.
- California Form 100: This is the California Corporation Franchise or Income Tax Return. It is essential for reporting income and taxes owed, similar to the information required in the California 3555.
- IRS Form 1120: This is the U.S. Corporation Income Tax Return. Corporations must file this form to report their income, which is relevant for obtaining tax clearance, akin to the requirements of the California 3555.
- California Form 568: This is the Limited Liability Company Return of Income. LLCs must file this form, which includes tax information needed for tax clearance, similar to what is requested in the California 3555.
- IRS Form 1040: This is the U.S. Individual Income Tax Return. Individuals who have been involved in a corporation may need to provide this information when assuming tax liabilities, paralleling the individual assumption section of the California 3555.
- California Form 540: This is the California Resident Income Tax Return. It serves a similar purpose for individuals, as it ensures that personal tax obligations are met before a business closure.
- IRS Form 8822: This form is used to change an address with the IRS. Keeping the IRS informed is crucial when seeking tax clearance, much like the address requirements in the California 3555.
- California Form 1120S: This is the U.S. Income Tax Return for an S Corporation. It is relevant for tax clearance as it provides necessary income information, similar to what the California 3555 requires.
- IRS Form 4506: This form requests a copy of a tax return. Businesses may need to provide previous returns to demonstrate compliance, similar to the tax return requirements in the California 3555.
- California Statement of Information (Form SI-550): This document updates the Secretary of State on a corporation's status. It is essential for maintaining compliance, akin to the information required in the California 3555.
Dos and Don'ts
When filling out the California 3555 form, it is essential to follow specific guidelines to ensure accuracy and compliance. Here are five important dos and don'ts:
- Do provide accurate and complete information for the corporation name and California corporation number.
- Do ensure that all tax returns have been filed and taxes paid before requesting a tax clearance certificate.
- Do check the box if you are submitting the form on a taxes paid basis and include a copy of your final tax return.
- Don't leave any sections blank; all required fields must be filled out to avoid delays.
- Don't forget to include any IRS activity status, as this information is crucial for processing your request.
Misconceptions
- Misconception 1: The California 3555 form is only for corporations.
- Misconception 2: Filing the form guarantees immediate approval.
- Misconception 3: Only unpaid taxes are a concern.
- Misconception 4: You can ignore IRS activity.
- Misconception 5: You don't need to provide financial information.
- Misconception 6: The form can be mailed anywhere.
- Misconception 7: You can submit the form without checking for accuracy.
This form is applicable not just to corporations, but also to limited liability companies (LLCs) and limited liability partnerships (LLPs). Any business entity that needs a tax clearance certificate can use it.
Submitting the California 3555 form does not guarantee that a tax clearance certificate will be issued right away. The Franchise Tax Board will review your tax status and ensure all taxes are paid before granting the certificate.
Even if all taxes are paid, the Franchise Tax Board can still audit your returns. All returns remain subject to audit until the normal statutes of limitation expire.
When completing the form, you must include a detailed financial statement if you are assuming tax liability. This information is crucial for the Franchise Tax Board's review process.
The California 3555 form must be mailed to a specific address: the Document Filing Support Unit at the Secretary of State. Ensure you send it to the correct location to avoid delays.
Double-check all information before submission. Inaccurate or incomplete information can lead to processing delays or denial of your request for a tax clearance certificate.
Key takeaways
Ensure all required information is filled out accurately. This includes the corporation name, California corporation number, and federal employer identification number.
Submit the form only after all taxes have been paid or secured. A tax clearance certificate will be issued only under these conditions.
Be aware that all returns remain subject to audit until the normal statutes of limitation expire. Keep records of all filings and payments.
If there is any IRS activity, such as examinations or redeterminations, indicate this clearly on the form. Provide the relevant years and documentation if applicable.
Complete the appropriate sections for individual or trust assumptions of tax liability. A detailed financial statement is required for these sections.