California Form 100 We – Fill Out and Use This PDF

California Form 100 We PDF Details

California Form 100-WE, the Water's Edge Election form, allows corporations to limit their California taxable income to U.S.-based income and designated foreign operations instead of worldwide income. The election is governed by Revenue and Taxation Code Sections 25110 and 25113. Once filed, the form must be attached to the back of Form 100W or Form 100S, and the corporation must keep a copy for its records.

Who Needs to File California Form 100-WE

Any corporation subject to California's combined reporting rules that wants to elect the water's-edge filing method must complete this form. The key corporation in the combined reporting group is responsible for filing the election. All members of the water's-edge combined report must be listed with their corporation name, California corporation number, and Federal Employer Identification Number (FEIN).

When to File and What to Include

The water's-edge election must be submitted by the due date of the first taxable year return for which it applies, including any approved extensions. The form requires the taxable year start date, the names and identification numbers of all group members, and the signature of an authorized corporate officer. Accuracy is critical, since errors in identifying key corporations or group members can affect the validity of the election.

How Long Does the Water's-Edge Election Last

The election covers 84 calendar months (seven years), starting from the first day of the taxable year for which it applies. Early termination is allowed under specific statutory conditions, such as a change in the corporation's business structure or scope. Corporations that wish to end the election early must follow the procedures set out in R&TC Sections 25110 and 25113.

Related California Tax Forms

Form 100-WE works alongside other California Franchise Tax Board (FTB) forms. It must be attached to California Form 100S (for S corporations filing the water's-edge combined return) or Form 100W (for C corporations). Corporations that need more time to pay may also use FTB Form 3539 for tax payment vouchers tied to automatic filing extensions.