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Failure to File Form 541-B

January 17, 2017 • Anonymous • Log In to Post Comments

Internal Revenue Code section 6652(c) imposes a penalty for the failure to file Federal Form 5227 of $20 a day for each day the return is late if gross income is equal or less than $250,000, with a maximum penalty of $10,000. 

What is the California penalty for the failure to file Form 541-B for gross income equal or less than $250,000?  Does California also have a maximum penalty amount for the failure to file Form 541-B?


California does not conform to IRC Sec. 6652(c) so therefore does not follow the federal penalty. However, CA does impose penalties for failure to comply with information reporting requirements, including the information reporting requirements for split-interest trusts (IRC Sec. 6304; R&TC Secs. 18631(c)(20) and 19183). This is a question you might consider asking the FTB via their Ask the Legal Expert function.


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