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F568-116 e-file error

This error occurs when California Form 568 Line 3 Annual Tax doesn't equal the required amount unless a valid exception applies.

Error message

XPath to Error: /CA-Return/CA-ReturnData/CAForm568/AnnualTax Rule Number: F568-116 Severity: Reject and Continue Data Value: CAForm568/AnnualTax value is:

Solution

  1. Go to
    Tax Forms
    States
    California
    568
    568
    568, Side 1
    Line 3
    .
  2. Make sure the
    Annual Limited Liability Company Tax
    amount is the required amount.
  3. If the amount is not correct, check whether one of these exceptions applies:
    • The tax period is 15 days or less
    • Business started in CA on or after 1/1/2021 and it's an Initial return
    • It's a Final return
    • Deployed military exemption applies
  4. If no exception applies, go to
    Organizer
    States
    California
    LLC Return
    General Information
    Exempt from Annual LLC Tax section
    .
  5. Clear the checkbox for
    Exempt from the annual LLC tax
    so Form 568, Side 1, Line 3 shows the required amount.
  6. Do a full recompute, then recreate the e-file.
note
If you can't enter the required amount and no exception applies, the return needs to be paper-filed.

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