California Interest Computation Under the Look-Back Method for Completed Long-Term Contracts

Interest Computation Under the Look-Back Method for Completed Long-Term Contracts
2023 Form 3834 Interest Computation Under the Look-Back Method for Completed Long-Term Contracts
TAXABLE YEAR

Interest Computation Under the Look-Back
Method for Completed Long-Term Contracts

CALIFORNIA FORM

3834

For the filing year beginning (mm/dd/yyyy)____________, and ending (mm/dd/yyyy)____________. See instructions.

□ SSN or ITIN □ CA Corporation no. □ FEIN

Name(s) as shown on your California tax return
Address (number and street, PO box, or PMB no.)

Apt. no./Ste. no.

City

California Secretary of State (SOS) file number

State

ZIP code

Check applicable box

□
□

Individual
□ Estate
Exempt organization

□
□

Trust
□ C corporation
Other______________

□

S corporation

□

Partnership

□

Limited liability company (LLC)

If you owned an interest in a pass-through entity (S corporation, estate, trust, partnership, or LLC treated as a partnership) that holds one or more long-term contracts to which
this interest computation relates, enter the name and identification number of the entity. Attach a schedule if there is more than one entity.
Name of entity

□

Identification number

Check this box if more than three prior years are involved. Attach additional form(s) FTB 3834 as needed. See General Information I, Miscellaneous.

Part I Regular Method
 1 Taxable income (loss) or net income (loss) for state purposes for
the prior year(s) shown on tax return (or as previously adjusted)
before net operating loss. If you were required to file form
FTB 3834 for an earlier contract completion year, enter adjusted
taxable income or net income for state purposes for the prior
year(s) from form FTB 3834, line 3, for the most recent contract
completion year that affects the prior year(s). Attach a copy of the
prior year(s) form FTB 3834 to this form  . . . . . . . . . . . . . . . . . . . . .

Filing year

Redetermination years

(a)
(b)
Year ended
Year ended
Year ended
mm___yyyy______ mm___yyyy______ mm___yyyy______

(c)
Totals
Add columns (a)
and (b)

 2 Adjustment to income to reflect the difference between: (a) the
amount of regular taxable income required to be allocated to
post-February 1986 contracts completed or adjusted during the
taxable year based on the actual contract price and costs; and
(b) the amount of income reported for such contracts based on
estimated contract price and costs. See instructions . . . . . . . . . . . . .
 3 Adjusted taxable or net income for look-back purposes. Combine
line 1 and line 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 4 Tax on line 3 amount using tax rates in effect for the prior year(s).
See instructions  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 5 Tax shown on return (or as previously adjusted) for the prior
year(s). See instructions. If you were required to file form
FTB 3834 for an earlier contract completion year, enter the amount
required to be reported on form FTB 3834, line 4, for the most
recent contract completion year that affects the prior year(s) . . . . . .
 6 Increase (or decrease) in tax for the prior year(s) on which interest
is due (or is to be refunded). Subtract line 5 from line 4 . . . . . . . . .
 7 Interest due on increase in tax, if any, shown on line 6.
See instructions  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 8 Interest to be refunded on decrease in tax, if any, shown on line 6.
See instructions  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9 Interest to be refunded to you – If line 8, column (c) exceeds line 7, column (c), enter the excess.
See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	
10 Interest you owe – If line 7, column (c) exceeds line 8, column (c), enter the excess.
See instructions  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 	

7601233

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FTB 3834  2023  Side 1

Part II Simplified Marginal Impact Method
Date of each prior year to which interest computation relates
(a)
(b)
(c)
 1 Adjustment to regular taxable income to reflect the difference between
Year ended
Year ended
Year ended
(a) the amount of income required to be allocated for post-February
1986 contracts completed or adjusted during the taxable year based mm___yyyy______ mm___yyyy______ mm___yyyy______
on actual contract price and costs; and (b) the amount of income
reported for such contracts based on estimated contract price and
costs. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
 2 Increase (or decrease) in regular tax for prior year(s). Multiply line 1
in each column by the applicable regular tax rate. See instructions.
For prior years beginning before 1987, skip line 3 and line 4 and
enter on line 5 the amount from line 2  . . . . . . . . . . . . . . . . . . . . . . . 
 3 Adjustment to alternative minimum taxable income to reflect the
difference between: (a) the amount of income required to be
allocated for post-February 1986 contracts completed or adjusted
during the taxable year based on actual contract price and costs;
and (b) the amount of income reported for such contracts based on
estimated contract price and costs. See instructions . . . . . . . . . . . . .
 4 Increase (or decrease) in alternative minimum tax (AMT) for prior
year(s). Multiply line 3 in each column by the applicable AMT rate.
See instructions  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
 5 Enter the amount from line 2 or line 4, whichever is larger. See
instructions if either amount is negative.
Pass-through entities (except S corporations): Skip line 6 and enter
on line 7 the amount from line 5. S corporations: See General
Information H, S Corporations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 6 Overpayment ceiling. For each column in which line 5 is a negative
number, enter your total tax liability for the prior year, as adjusted for
past applications of the look-back method, and after net operating
losses, capital losses, and credit carryovers to that year. For each
column in which line 5 is a positive number, leave line 6 blank and
enter on line 7 the amount from line 5 . . . . . . . . . . . . . . . . . . . . . . . 
 7 Increase (or decrease) in tax for the prior year(s) on which interest
is due (or is to be refunded). Enter the amount from line 5 or line 6,
whichever is smaller. Treat both numbers as positive when making
this comparison, but enter the amount as a negative number  . . . . . 
 8 Interest due on increase in tax, if any, shown on line 7.
See the instructions for Part I, line 7 and line 8  . . . . . . . . . . . . . . . . 
 9 Interest to be refunded on decrease in tax, if any, shown on line 7.
See the instructions for Part I, line 7 and line 8.  . . . . . . . . . . . . . . . 
10 Interest to be refunded to you – If line 9, column (d) exceeds line 8, column (d), enter the excess.
See the instructions for Part I, line 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11 Interest you owe – If line 8, column (d) exceeds line 9, column (d), enter the excess.
See the instructions for Part I, line 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Sign here
only if you are
filing this form
separately and
not with your
tax return. See
instructions.

(d)
Totals
Add columns (a),
(b), and (c)

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Our privacy notice can be found in annual tax booklets or online. Go to ftb.ca.gov/privacy to learn about our privacy policy statement, or go to
ftb.ca.gov/forms and search for 1131 to locate FTB 1131 EN-SP, Franchise Tax Board Privacy Notice on Collection. To request this notice by mail,
call 800.338.0505 and enter form code 948 when instructed.
Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge
and belief, it is true, correct, and complete.
Your signature
Date

X

It is unlawful
Spouse’s/RDP’s signature (if filing jointly, both must sign)
to forge a
spouse’s/RDP’s X
signature.
Paid preparer’s signature (declaration of preparer is based on all information of which preparer has any knowledge) PTIN
Firm’s name (or yours if self-employed)

Side 2  FTB 3834  2023

Firm’s address

7602233

Date