California Business Portal

Should I file my business entity tax return even though I cannot pay?

Should I file my business entity tax return even though I cannot pay?

Yes, if you owe but cannot pay your taxes by the due date, then you still must file your tax return timely and pay as much as you can. Although there are late payment penalties, late filing penalties are usually higher. After the Franchise Tax Board (FTB) processes the tax return, FTB sends a bill with penalties and interest.

If the business entity is unable to pay the total balance by the notice due date, then the business entity can enter into an installment agreement if it cannot pay the total balance in 90 days due to a financial hardship. Under this program, it agrees to pay a specified amount on a specified day each month. For more information, go to http://ftb.ca.gov and search for installment agreements—business.

Did you find this article helpful?

Haven't found what you're looking for, send us an email