Amended return issue & CA LLC

[oakhillsal]

Client filed as a partnership/LLC in 2018.  In 2018, client bought out partner and continued the LLC.  Client was advised to end the LLC and just use schedule C for both CA (California) and Fed purposes.  In 2019, client filed Schedule C for both fed and CA, same in 2020, and 2021.  However, he did not dissolve the LLC and expected and didn't inform me of that fact.  In 2022, the CA taxing authority demanded LLC returns for all the missing years (2019,2020, 2021).  I have completed the CA 568 forms using Proseries Professional and the CA option of filing the Schedule C as an LLC.  All worked perfectly until I tried to amend the CA personal return.  I tried deleting the schedule C and saving the data, but as soon as I reopen the file, the schedule C returns as a result of the Federal data.  I am wondering if anyone has a solution other than to eliminate the schedule C from the federal side and carefully check the CA state to make sure no data was lost that is needed.  I' hoping someone else has gone through this process.  Thanks.

[Just-Lisa-Now-]

CA wants a 540 and a 568 for each year, what are you trying to amend on the 540?

[oakhillsal]

Return was originally filed with a Schedule C.  Now that an LLC is to be filed for CA, the Schedule C is no longer valid or needed.  I'm trying to remove the schedule c on the amended return.  Otherwise, I believe the same data is being reported twice.

[sjrcpa]

A single owner LLC disregarded for income tax purposes reports its activity on Schedule C (or E or F as appropriate). It stays on the amended return.

The 568 is an additional filing for the privilege of being an LLC. Where do you think there is double reporting?

[Just-Lisa-Now-]

^^^^^This!^^^^

[oakhillsal]

I didn't see that in the CA instructions; perhaps I was reading too fast.  If that is correct, then the original filings of the CA "C" were correct and the only thing I would need to do to satisfy the CAFTB is complete the 568. (Which they demanded.) Am I correct in that thinking?

[abctax55]

@oakhillsal 

Correct. The GROSS receipts get reported on the F 568. Unless those exceed $250,000, all that is owed is the $800 minimum tax. IF the gross receipts are > $250,000... then the LLC fee is imposed in addition to the $800.