How do I prepare California Form 3804 and 3893 with an 1120S return using interview forms in CCH® ProSystem fx® Tax?

  • Article Type:
  • How To
  • Last Modified:
  • 08/04/2022

Objectives

Prepare and populate California Form 3804 and / or Form 3893 in an S Corporation return using Interview forms view.

 

Environment

  • CCH ProSystem fx Tax
  • 1120S
  • California
  • Interview 
  • Form 3804
  • Form 3893

Procedure

Prepare the 3804 Pass-Through Entity Elective Tax Calculation

FTB 3804, Part I, line 3 will calculate the elective according to all shareholder income(s) in Part II  Schedule of Qualified Taxpayers below the line. FTB 3804, Part I, Line 3, will carry into Form 100S, page 2, line 29 as Pass-through entity elective tax due and line 35 as Amount paid with Form FTB 3893.
  1. Go to California > CA27 - Pass-Through Entity Elective Tax Calculation.
  2. In Boxes 60-64 - S/H #, input applicable shareholder number(s) to be included in the 3804 calculation.
  3. (Optional) In Boxes 30-56 - First Name, M.I., and Last Name, input applicable information of the shareholder(s) to be included in the 3804 calculation.
  4. (Optional)  In Boxes 33-57 - ID Code, select from the following:
    1. SSN / ITIN
    2. FEIN
  5. (Optional) In Boxes 34-58 - ID Number, input shareholder identification number in a format (xxx-xx-xxxx / xx-xxxxxxxx) according to the ID Code selected in step 3 for the shareholder.
  6. (Optional) In Boxes 35-59 - Amount, input applicable Pro-rata or distributive share of qualified net income amount as it should appear on Form 3804, Part II, line a.
  7. Select to create additional sheets, if more than 5 rows are needed.
  8. Repeat steps 2-7 as applicable.
  9. Calculate the return.

Prepare the 3893 Pass-Through Entity Elective Tax Payment Voucher

  • Form 3893 2021 automatically activates when Form 3804 is present.
  • The amount on FTB 3893 Amount of payment carries to Form 100S, page 2, line 35 as paid against taxes due.

Override Form 100S, page 2, line 35

  1. Go to California > CA26A.
  2. In Box 53, Amount paid with Form 3893 voucher - override, input applicable amount.
  3. Calculate the return.
  • FTB 3586 is the payment voucher for the remaining tax due on 100S return, line 40, after applying taxes paid on line 36, which includes 3893 payments. Thus, the state may assume the 3893 is filed and paid prior to filing the 100S return.
FTB Form 3893 can be forced when 3804 is not prepared with the following:
  1. Go to California > CA26A - Form 592-PTE Continued.
  2. In Box 50 - Force print Form 3893, select the checkbox.
  3. In Box 51 - Payment amount, input applicable amount as it should appear on Form 3893, Amount of Payment line.
  4. Calculate the return.

Tax Year 2022 FTB Form 3893 added to software with release 2021.03030 / 2021-3.0

  • This voucher is automatically prepared with 2021 FTB Form 3893.
  • The due date of this voucher is June 15th, 2022.
  • Printing the 2022 FTB Form 3893 is included with the Accountant, Government, and Client copies, or by going to the form and selecting Print > This Form. 
Override the amount due with tax year 2022 Form 3893 voucher
  1. Go to California > CA26A.
  2. In Box 52, June 15 estimate voucher payment amount - override, input applicable amount.
  3. Calculate the return.

Suppress Print of 2022 FTB 3893 Voucher (available with release 2021.03041)

  1. Go to California > CA26A.
  2. In Box 55, Suppress 3893 estimate vouchers, select as applicable.
  3. Calculate the return.

Form 100S, Schedule K / K-1, line 13d Other credits for 3804-CR (automated calculation - release 2021.03040)

Total Credit can be overridden:
  1. Go to California > CA12 - Sch K Overrides and Other Items.
  2. In Box 86 - Other Credits - All Sources, input an applicable credit amount.
    • Special allocation code 55103.
  3. In Box 87 - Other Credits - California Source, input an applicable credit amount.
    • Special allocation code 55104.
  4. Calculate the return.

Schedule K-1 Statement for Line 13d - 3804-CR Credit (automated statement - release 2021.03040)

Additional K-1 Footnote can be input if needed:
  1. Go to Federal Interview Form 12 Schedule K-1 Footnotes.
  2. In Box 30 - FS, select S - State.
  3. In Box 31 State, select CA California.
  4. In Box 34 Ratio ID number, if specially allocating the footnote different than Federal ownership percentage, then input a unique ratio ID number and allocate using interview form K-5.
  5. In Boxes 42-232Footnotes and Amount, input applicable information.
  6. Calculate the return.

Filing Instructions and Transmittal letter

  • Letters are now available for 2022 FTB Form 3893 voucher with release 2021.03040.

Electronic Filing

  • If Form 3804 is prepared, then it will be included with the electronic file.
  • Form 3893 voucher is not supported for electronic filing at this time. This is projected to be available with release 2021.03041.
  • Go to California > CA26A, box 54 - Electronic Filing (Y), (N), select Yes to efile FTB Form 3893(s)

Notes

  • Form 3804 and 3893 can be found in the list of California Government forms, under 588,592 Series - Withholding payments this company sends FTB, Waiver, along with the Form 592 vouchers and statements.
  • Only shareholder types Individual, Estate, and Trust are included on the Form 3804.
    • FTB 3804 Instructions document Qualified Taxpayer:
      • "Qualified taxpayer – is defined as an individual, fiduciary, estate, or trust that is a partner, shareholder, or member of an electing qualified PTE that consents to have their pro-rata share or distributive share of income included in the qualified net income subject to the elective tax of the electing qualified PTE. The qualified taxpayer may be a resident, nonresident, or part-year resident. The qualified taxpayer does not include disregarded entities and their partners or members."
  • FTB Instructions for passthroughs will refer to FTB 3804-CR, but this form is only relevant at the individual tax return
    • The 3804-CR is used by a member on their individual return to list the partnership and S Corporation K-1s received reporting the amount of tax paid on their behalf by the Pass-through entity and calculate an amount allowed as a credit on their personal return or carried over into a following year.
  • If the Federal S Corporation enables a State / City Tax Accrual option (Interview Form 2A, box 33) then the tax due on California 100S, page 2, line 30 (including line 29 - 3804, line 3 elective tax), will carry into the Federal 1120S, page 1, line 12 - Taxes and licenses.
  • CA 100S Form 5806, line 4 includes the PTE tax in the calculation of the underpayment of estimated tax penalty. with release 2021.03010.
  • G-I; Government to Interview links were added with release 2021.03010.
  • Cross-Reference F1 help is a work in process for a future future release.
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