FTB Archive Disclaimer:  Archived content is not current and may contain broken links. It remains online for historical reference or research. The search function above allows you to search archived and current content separately. If you need archived content in a different format, contact us.

AUTOMATIC EXTINGUISHMENT OF QUALIFIED DISCHARGE DEBTS

FTB Archive Disclaimer:  Archived content is not current and may contain broken links. It remains online for historical reference or research. The search function above allows you to search archived and current content separately. If you need archived content in a different format, contact us.

PURPOSE OF BULLETIN

To inform staff beginning October 29, 2009, automatic extinguishment of qualified discharge debts increased from $250 to $500.

BACKGROUND

In 2005, AB 911 amended Government Code Section 13943.1 requiring us to permanently extinguish any discharged debts that met one of the following criteria:

  • Over 30 years old.
  • Balance due under $250.
  • Permanent financial hardship.

Note: R&TC Section 19255 requires us to permanently abate unpaid debts after 20 years.

ADDITIONAL INFORMATION

On July 28, 2009, SBX4 16 amended Government Code Sections 13943.1 and 13943.2 increasing the balance due discharge amount to under $500. System changes will be implemented in both the Taxpayer Information System (TI) and Business Entities Tax System (BETS) for all debts that meet the criteria.

The new updated code that will display for the extinguish transaction has been modified.

There is no change to the TI displays. Users will continue to see “GC DB W/O” on each tax year that meets the automatic extinguishment criteria.

 

Back to Public Service Bulletins Archive

Help Us Improve Our Website

Don't include social security numbers or other personal/confidential information.



Thank you for your help.

If you need assistance, contact us.

Oops! Something went wrong.

We appreciate your feedback. Please try again later

 

You are leaving ftb.ca.gov

We do not control the destination site and cannot accept any responsibility for its contents, links, or offers. Review the site's security and confidentiality statements before using the site.

If you have any issues or technical problems, contact that site for assistance.

Ahora está saliendo de ftb.ca.gov

Nosotros no controlamos el sitio web al que se destina y no podemos aceptar ninguna responsabilidad por su contenido, enlaces, u ofertas. Revise las declaraciones de seguridad y confidencialidad del sitio antes de usar el sitio. Si tiene algún problema en general o técnico, comuníquese con ese sitio para obtener asistencia.

Si tiene algún problema en general o técnico, comuníquese con ese sitio para obtener asistencia.