Entity: business entity return advice.

• Position: FTB

Should you file a Business Entity Return even though you don't have the money to pay? According to the FTB, if you owe, but cannot pay your taxes by the due date, you still must file your return on time and pay as much as you can. Although there are penalties for late payment of tax, the penalty for late filing of the return is usually higher. This statement is especially true for pass-through business entities, such as partnerships, LLCs and S corporations.

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Similar to the federal law (IRC secs. 6698 and 6699), California law (R&TC Sec. 19172 and 19172.5)...