Form 4197 SHOULD be filed
View More DetailsAfter reading the March CA newsletter we were made aware of the FTB Form 4197 reporting requirements. In reading the instructions to the form, it mentions several times that the form "should be filed" rather than "must be filed by"... Even in under the "Purpose" of the form, the header is "Who should file". Given the lack of information the form is providing anyone if the entity had their PPP loan forgiven, is the form actually required?? As it is, we are going to have to complete the form manually and then attach a pdf to efiled returns to include the form in the return.
Thank you
Comments
We are clarifying with the FTB what are the ramifications, if any, if a taxpayer fails to file the Form 4197. We'll keep you posted.
Good news. The FTB has confirmed that the Form 4197 is not an "information return" and no penalties will be imposed for failing to file this return. The FTB also stated that failure to include FTB Form 4197 in the original return filing, would not require the return to be amended. FTB Form 4197 can be submitted separately as general correspondence.
Sandy, we did not file Form 4197 with Corporation Form 100 and would like to submit this form separately. May I have FTB mailing address for this submission?
Also, do we need to attach a copy of Form 100 with this submission?
Thanks.
How is a business to know what deductions were paid with PPP money?
The Form 4197 can be mailed to the general correspondence address for businesses:
Franchise Tax Board
PO Box 942857
Sacramento CA 94257- 0500