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The California 3555 form, also known as the Request for Tax Clearance, plays a crucial role for corporations and other business entities in the state. This form is primarily used to obtain a tax clearance certificate from the California Franchise Tax Board (FTB), which confirms that all tax liabilities have been settled. To initiate the process, corporations must provide essential information, including their name, California corporation number, current address, and federal employer identification number. The form also requires details about the business's operational timeline, such as the date it commenced and any plans for cessation. Moreover, it addresses any ongoing IRS activities that may affect tax obligations, ensuring that all returns remain subject to audit until the normal statutes of limitation expire. For those assuming tax liability—whether individuals, trusts, or other entities—specific sections must be completed to demonstrate financial responsibility. The form also accommodates scenarios involving mergers or asset transfers, highlighting the need for careful documentation. A clear understanding of the California 3555 form is vital for businesses aiming to comply with state tax regulations and ensure a smooth transition during corporate restructuring or dissolution.

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Request for Tax Clearance

 

 

 

 

CALIFORNIA FORM

 

 

3 5 5 5

Certificate — Corporations

 

 

 

 

 

 

 

 

 

Corporation name

 

 

 

 

California corporation number

 

 

 

 

 

Current address

 

Phone number

Federal employer identification number

 

 

(

)

 

 

 

 

Date business commenced

Date business ceased or will

 

Latest income period for which a

Date filed:

in California:

cease in California:

 

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

Is the IRS or the FTB currently examining the corporation

liability for any prior years that you have not previously

or has it notified the corporation of a pending examination?

reported to us? ❏ Yes ❏ No

❏ Yes ❏ No If yes, indicate the years involved:

If yes, send us a copy of the Revenue Agent’s Report.

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

Federal employer identification number

Date assets transferred to transferee

Section of the Internal Revenue Code applicable to the transfer of

taxpayer’s business or assets: ______________

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.

FTB 3555 C1 (REV 09-2001) PAGE 1

Please complete Section A or B below.

A. INDIVIDUAL ASSUMPTION OF TAX LIABILITY

Corporation name

Current address

 

California corporation number

Phone number

Federal employer identification 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

 

 

 

 

 

 

 

 

 

 

 

 

 

Phone number (

)

 

 

 

 

 

 

 

 

Date

Signature

 

 

 

 

 

B. TRUST ASSUMPTION OF TAX LIABILITY

Corporation name

Current address

 

California corporation number

Phone number

Federal employer identification number

( )

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

Phone number (

)

Date

Trustee’s name (print)

Trustee’s signature

FOR PRIVACY ACT NOTICE, SEE FORM FTB 1131.

FTB 3555 C1 (REV 09-2001) PAGE 2

FINANCIAL STATEMENT FOR INDIVIDUAL OR OTHER ENTITY

Corporation name

Corporation number

 

 

 

 

Statement of Assets and Liabilities

Item

 

Present

Liabilities

Equity in

 

value (A)

balance due (B)

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.)

Real property (brief descriptions and locations)

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

CORPORATION, LIMITED LIABILITY COMPANY, OR LIMITED LIABILITY PARTNERSHIP ASSUMPTION OF TAX LIABILITY

The Assumption of Tax Liability

of (1) __________________________________________________________ )

 

)

 

A corporation

) ________________________

 

)

California Corporation number, Secretary of

 

State file number, or federal employer

by (2) _________________________________________________________ )

identification number

 

 

)

 

A corporation, limited liability company, or limited liability partnership

) ________________________

 

 

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) _________________________________________

 

Exact corporation, limited liability company, or limited liability partnership name

_______________________________________

_________________________________________

Printed name and title of officer/manager/partner/member

Signature and title of officer/manager/partner/member

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 __________________________________________________________

(typed or printed)

Note: LLC, LLP, and corporation assumers must provide a financial statement.

FTB 3555 C1 (REV 09-2001) PAGE 4

➤ PDF File

Form Specifications

Fact Name Fact Description
Form Purpose The California 3555 form is used to request a tax clearance certificate for corporations, ensuring all taxes have been paid or secured.
Governing Law This form is governed by the Bank and Corporation Tax Law in California.
Required Information Corporations must provide their name, California corporation number, address, phone number, and federal employer identification number.
IRS Activity Disclosure The form requires disclosure of any IRS activity, including audits or examinations that may affect tax liability.
Submission Address Completed forms must be mailed to the Document Filing Support Unit at the Secretary of State in Sacramento, CA.
Assumption of Liability The form includes sections for individuals or trusts to assume tax liability for the corporation, ensuring compliance with tax obligations.

California 3555: Usage Guidelines

Filling out the California 3555 form requires careful attention to detail. This form is essential for requesting a tax clearance certificate. Ensure you have all necessary information and documents ready before you begin. Follow the steps outlined below to complete the form accurately.

  1. Provide the corporation name at the top of the form.
  2. Enter the California corporation number.
  3. Fill in the current address of the corporation.
  4. Input the phone number and federal employer identification number.
  5. Indicate the date business commenced and the date business ceased or will cease in California.
  6. Specify the latest income period for which a California tax return has been filed.
  7. Check the box if you want the tax clearance certificate issued on a taxes paid basis and attach a copy of your final tax return.
  8. Indicate the status of any IRS activity by answering the questions regarding redetermination or examination.
  9. If applicable, provide details about any other corporation that will continue the business after the merger.
  10. If you need the tax clearance certificate mailed to a different address, fill in the name, address, and phone number of the recipient.
  11. Complete either Section A or B for individual or trust assumption of tax liability.
  12. For Section A, provide the name of individual assumer, social security number, and net worth.
  13. For Section B, fill in the name of trust and trust federal identification number.
  14. Sign and date the form at the end.
  15. Mail the completed form to the address provided on the form.

After completing the form, ensure all information is accurate and legible. Submit it to the appropriate address to initiate the process for obtaining your tax clearance certificate. Keep a copy of the form for your records.

Your Questions, Answered

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 request a tax clearance certificate from the Franchise Tax Board (FTB). This certificate indicates that all taxes have been paid or secured, which is often necessary when a corporation is dissolving or merging. The form ensures that the corporation has fulfilled its tax obligations before any changes in its status occur.

What information do I need to provide on the form?

When filling out the California 3555 form, you will need to provide several key pieces of information. This includes the corporation's name, California corporation number, current address, phone number, and federal employer identification number. Additionally, you must indicate the dates related to the business, such as when it commenced and when it ceased or will cease operations. If applicable, you should also provide details about any IRS activity affecting the corporation, including whether the IRS has redetermined income tax or is currently examining the corporation.

How do I submit the California 3555 form?

To submit the California 3555 form, you must complete the required sections and mail it to the Document Filing Support Unit at the Secretary of State's office. The address is 1500 11th Street, Sacramento, CA 95814. Ensure that you include any necessary attachments, such as your final tax return if you are requesting a tax clearance certificate on a taxes paid basis. Double-check your information for accuracy before mailing the form to avoid delays.

What happens after I submit the form?

After you submit the California 3555 form, the Franchise Tax Board will review your request. If all taxes have been paid or secured, they will issue a tax clearance certificate. It is important to note that all returns remain subject to audit until the normal statutes of limitation expire. If there are any outstanding issues or if the IRS is currently examining the corporation, this may affect the issuance of the certificate. You will be notified if any additional information is required.

Common mistakes

  1. Incomplete Information: Many individuals fail to fill in all required fields, such as the corporation name, California corporation number, or federal employer identification number. This can delay the processing of the form.

  2. Incorrect Dates: Providing inaccurate dates for when the business commenced or ceased can lead to complications. It’s crucial to ensure these dates are correct and match your records.

  3. Missing IRS Information: Some people overlook the section regarding IRS activity. Not indicating if there is any ongoing IRS examination can result in issues later on.

  4. Failure to Attach Required Documents: If a tax clearance certificate is requested on a taxes paid basis, individuals must provide a copy of the final tax return. Forgetting to include this can lead to rejection of the application.

  5. Ignoring Financial Statement Requirements: For individuals or entities assuming tax liability, a detailed financial statement is necessary. Failing to include this can stall the process.

  6. Not Checking the Right Box: When requesting a tax clearance certificate, individuals sometimes forget to check the box indicating they want it issued on a taxes paid basis. This can create confusion about the request's intent.

  7. Incorrect Mailing Information: If the tax clearance certificate needs to be sent to a different address, individuals must ensure that the mailing information is accurate. Mistakes here can lead to delays in receiving the certificate.

  8. Signature Issues: Lastly, some people neglect to sign the form or provide the correct title. This simple oversight can render the form invalid.

Documents used along the form

The California 3555 form, known as the Request for Tax Clearance, is an essential document for corporations seeking to ensure that all tax obligations are met before dissolution. Along with this form, several other documents may be required to provide additional information or fulfill legal obligations. Below is a list of commonly used forms and documents that accompany the California 3555 form.

  • California Form 100: This is the California Corporation Franchise or Income Tax Return. Corporations must file this form annually to report income, deductions, and tax liabilities to the Franchise Tax Board.
  • California Form 568: Used by Limited Liability Companies (LLCs), this form reports the income, deductions, and credits of the LLC and is necessary for compliance with California tax laws.
  • IRS Form 1120: This is the U.S. Corporation Income Tax Return. Corporations use this federal form to report their income, gains, losses, deductions, and credits to the Internal Revenue Service.
  • IRS Form 1065: Partnerships and multi-member LLCs use this form to report their income, deductions, and other tax information to the IRS. It is essential for ensuring compliance with federal tax obligations.
  • California Form 3522: This is the LLC Tax Voucher, which is used to pay the annual minimum franchise tax for LLCs in California. It is a critical document for maintaining good standing.
  • Financial Statement: A detailed financial statement is often required to provide insight into the corporation's financial health. This document outlines assets, liabilities, and net worth.
  • Assumption of Tax Liability Agreement: This document outlines the agreement between parties regarding the assumption of tax liabilities. It is crucial when one entity takes over another's tax obligations.

These forms and documents work together to ensure compliance with both state and federal tax regulations. It is advisable to consult with a tax professional or legal expert to navigate the requirements effectively.

Similar forms

  • California Form 3556: This form is used to request a tax clearance certificate specifically for limited liability companies (LLCs). Like Form 3555, it ensures that all taxes owed by the LLC are paid before the business is dissolved or ceases operations.
  • California Form 100: This is the California Corporation Franchise or Income Tax Return. It is similar to Form 3555 in that it requires corporations to report their income and tax liabilities. Both forms are essential for confirming that a corporation has met its tax obligations.
  • California Form 540: This is the California Resident Income Tax Return for individuals. It shares similarities with Form 3555 in that both require individuals or entities to report tax liabilities. Each form helps ensure that all taxes have been settled before a business or individual can proceed with certain actions, like dissolution or transfer of assets.
  • California Form 592: This form is used to report California withholding on income paid to nonresidents. It is akin to Form 3555 because both documents involve compliance with tax obligations. Ensuring proper withholding and tax clearance is crucial for both individuals and corporations operating in California.

Dos and Don'ts

When filling out the California 3555 form, it’s essential to ensure accuracy and completeness. Here’s a list of what you should and shouldn’t do:

  • Do double-check all information for accuracy before submission.
  • Do provide a copy of your final tax return if required.
  • Do include all relevant IRS activity, especially if there are pending examinations.
  • Do ensure that the corporation name and number are correct.
  • Do sign and date the form where indicated.
  • Don’t leave any sections blank; fill out all required fields.
  • Don’t forget to attach any necessary financial statements.
  • Don’t submit the form without reviewing the instructions thoroughly.
  • Don’t overlook the mailing address; ensure it is correct for submission.
  • Don’t hesitate to seek assistance if you have questions about the form.

Misconceptions

  • Misconception 1: The California 3555 form is only for corporations.

    • This form can be used by various entities, including limited liability companies and partnerships, not just corporations. Individuals and trusts can also assume tax liabilities using this form.

  • Misconception 2: A tax clearance certificate is automatically issued upon request.

    • A tax clearance certificate will only be issued once all taxes have been paid or secured. The Franchise Tax Board will review the submission before issuing the certificate.

  • Misconception 3: The form is not necessary if the corporation has ceased operations.
  • Misconception 4: Completing the form guarantees that there will be no audits.

    • All tax returns remain subject to audit until the expiration of the normal statutes of limitation. Submitting the form does not exempt a corporation from being audited.

  • Misconception 5: The IRS and California Franchise Tax Board (FTB) share all information automatically.

    • While both agencies may have access to certain information, they do not automatically share all details. It's essential to report any IRS activity separately on the form.

  • Misconception 6: Only one signature is required on the form.

    • Depending on the type of entity, multiple signatures may be necessary. For example, both the individual and a trustee must sign if a trust is assuming tax liability.

  • Misconception 7: The form can be filed without providing financial statements.

    • A detailed financial statement is required for individuals or entities assuming tax liability. This information helps the FTB assess the ability to pay any outstanding taxes.

  • Misconception 8: The form can be submitted via any method of communication.

    • The completed form must be mailed to the specified address for the Document Filing Support Unit. Electronic submissions are not accepted for this form.

  • Misconception 9: Assistance is not available for individuals with disabilities.

    • The Franchise Tax Board complies with the Americans with Disabilities Act and provides assistance for individuals with hearing or speech impairments through designated phone lines.

Key takeaways

Filling out the California 3555 form can seem daunting, but understanding its key components can make the process smoother. Here are some essential takeaways to keep in mind:

  • Know the Purpose: The California 3555 form is a request for a tax clearance certificate, which confirms that all taxes have been paid or secured before a corporation dissolves or merges.
  • Accurate Information is Crucial: Ensure that all details, such as the corporation name, California corporation number, and federal employer identification number, are accurate. Mistakes can delay the process.
  • IRS Activity Matters: Be prepared to disclose any ongoing IRS examinations or redeterminations. This information can affect your tax clearance status.
  • Complete the Right Sections: Depending on whether you are an individual or a corporation, complete the appropriate sections of the form. Pages 2 and 3 are for individuals or other entities, while page 4 is specifically for corporations and LLCs.
  • Financial Statements Required: If you are assuming tax liability, a detailed financial statement is necessary. This helps the Franchise Tax Board assess the financial situation of the individual or entity assuming the liability.
  • Mailing Instructions: Pay attention to where you want the tax clearance certificate sent. If it’s different from the corporation's address, provide the correct mailing information to avoid delays.

By keeping these takeaways in mind, you can navigate the California 3555 form with greater confidence and clarity. Always double-check your information and don’t hesitate to reach out for assistance if needed!