Reminder: Mandatory California Electronic Payments For Certain Taxpayers
May 26, 2016
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. California will charge a 1% penalty for payments made by check if you are required to make electronic payments.
You will need your Social Security Number, name from your last filed return, the year and type of payment, and your bank account and routing numbers or credit card information. Generally, you cannot request a transfer from a brokerage or money-market account for this purpose. The following 3 electronic payment options will be available:
- Web Pay: Go to www.ftb.ca.gov and select payment options. A free FTB service. Bank account transfers only.
- Credit Card: Go to www.ftb.ca.gov and select payment options. 2.3% fee charge.
- Telephone: Available for a fee from Western Union at (800) 238-5772.
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.
Please contact us with any questions.