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Any tax information or written tax advice contained herein (including any attachments) is not intended to be and cannot be used by any taxpayer for the purpose of avoiding tax penalties that may be imposed on the taxpayer. (The foregoing legend has been affixed pursuant to the U.S. Treasury Regulations governing tax practice.)
The matters highlighted on this website are presented in general terms and cannot be applied without consideration of all circumstances. NSBN will provide additional details upon request and will be pleased to discuss with our clients or their attorneys the possible effects of these matters in specific situations.
Email Alert
Mandatory California Electronic Payments for Certain Taxpayers
March 25, 2009
(Updated as of March 2010)
As of January 1, 2009, Assembly Bill 1389 requires certain taxpayers to submit their California income tax payments electronically if either of the following occurs:
- Estimated tax or extension payments exceed $20,000
- A return with a tax liability over $80,000
Once you meet the mandatory e-pay threshold, you must submit all payments electronically regardless of the taxable year, type of payment, or payment amount. A 1% penalty applies to payments made by check if you are required to pay electronically.
No set-up is required. You will need your Social Security Number, last name from your 2008 return, the year and type of payment, and your bank account & routing numbers or credit card information. Generally, you cannot request a transfer from a brokerage or money-market account for this purpose.
The following four electronic payment options will be available:
- Web Pay: Go to www.ftb.ca.gov and select payment options. A free FTB service.
- Electronic Funds Withdrawal (EFW): Include your banking information as instructed on your e-file return.
- Credit Card: Go to www.ftb.ca.gov and select payment options. 2.5% fee charge.
- Telephone: call (800) 554-7500 and follow the promts for the FTB. A free FTB service.
Please call us if you have any questions about this new law and electronic payment options, or go to ftb.ca.gov and search for mandatory e-pay for the latest information.
