Instructions for Form R Apportionment and Allocation of Income - California

This document contains official instructions for Form R , Apportionment and Allocation of Income - a form released and collected by the California Franchise Tax Board.

FAQ

Q: What is Form R?A: Form R is a tax form used in California for apportionment and allocation of income.

Q: What is apportionment and allocation of income?A: Apportionment and allocation of income is the process of determining how much of a company's income is taxable in California.

Q: Who needs to file Form R?A: Any business that has income from sources both inside and outside of California needs to file Form R.

Q: How do I determine my apportionment and allocation factor?A: The apportionment and allocation factor is usually based on the percentage of a business's sales, payroll, and property located in California.

Q: Are there any exemptions or special rules for certain industries?A: Yes, there are special rules and exemptions for industries such as transportation, financial institutions, and agricultural businesses.

Q: When is the deadline to file Form R?A: The deadline to file Form R is usually on or before the 15th day of the fourth month following the close of the tax year.

Q: What happens if I don't file Form R?A: Failure to file Form R or filing a late or incorrect form may result in penalties and interest charges.

Q: Do I need to keep a copy of Form R for my records?A: Yes, it is recommended to keep a copy of Form R and all supporting documentation for at least four years.