California preparer. 2021 LLC tax due date

In the past, the due date of the prior year tax return was the same as the due date of the current year LLC annual tax. Therefore, for those who owned a LLC whic is a disregarded entity, my 'system' is to tell the clients to pay the current year LLC tax at the time when they file the prior year tax return. Same due date and it has never been a problem.

This year though, I think I have fallen into a 'trap'. While the 2020 tax return due date has been extended to 5/17, the 2021 LLC tax due date stays the same on 4/15(based on what I read). Therefore, for those clients whose LLC is a disregard entity and I plan to file their 2020 tax return in early May, I am just aware today that their 2021 LLC tax is probably past due already.

Lets say these clients pay the 2021 LLC tax later this month (April) or in early May, about how much is the late penalties on the 2021 LLC tax?

Yes, that is correct Form 3522 and Q1 2021 2021 estimates were still due by April 15. For an $800 payment I think it works out to a penalty of about $24.

Thank you. Is the $24 figure based on the assumption that the LLC tax is paid before May 15th so it will just be one month late?

Let's say the LLC tax is not paid until July, about how much will it be more?

I think I will have to pick up the late penalties bill eventually.

https://www.ftb.ca.gov/forms/2020/2020-568-booklet.html

The failure-to-pay penalty is imposed from the due date of the return or the due date of the payment. Since any amount of the LLC fee due which was not paid as an estimated fee payment, and the nonconsenting nonresident members’ tax are due with the return, the penalty is calculated from the original due date of the return. The annual tax payment date is the 15th day of the 4th month during the taxable year, so the penalty is calculated from this date. The penalty for each item is calculated separately.

The failure-to-pay penalty begins at 5%. Every month or fraction thereof the amount is not paid the penalty increases 0.5%. The penalty continues to increase for 40 months, thereby maximizing at 25%. See R&TC Section 19132 for more information.

Sounds like $40 if paid on or before May 15th. I'd advise not waiting until the last minute.

It seems CA may assess interest too, based on the instructions. I'd let the CA FTB send a bill and tell the client to expect one.

Thank you TaxMonkey and ManVsTax.

It has just came to my mind too the short-version Form 568 of a disregarded entity might be late too by now. I am sure the full-version Form 568 was still due on April 15th without the due date delay. Does the short-version Form 568 of disregarded entities have the delay?

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