FTB issuing late filing penalty refunds.

• Position: News - Franchise Tax Board - Brief article

The FTB is processing refunds of a penalty applied to certain single member limited liability companies (SMLLCs). The FTB recently discovered that the Late Filing Penalty under Revenue and Taxation Code Sec. 19172 was misapplied to certain SMLLCs. It was determined that the penalty should not be imposed on SMLLCs treated as disregarded entities for tax purposes.

The penalty is a maximum of $50 ($10 per member, times five months) for years 2010 and prior, and $216 ($18 per member, times 12 months) for 2011 and later. Multiple member LLCs are not affected. SMLLCs will be identified by the FTB based on information on their...