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Tax Amnesty: Installment Agreement

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Updated - August 5, 2005

These frequently asked questions relate to installment agreements for individuals. Corporations can get information about making payments at 916.845.7033. Partnerships should call 916.845.7165.

  1. What if I'm already in an installment agreement and I want to participate in Tax Amnesty?
  2. What if I choose to participate but can't pay my Amnesty tax liabilities in full by May 31, 2005?
  3. When do I apply for an amnesty installment agreement?
  4. What if my installment agreement includes both amnesty and non-amnesty tax years?
  5. Will the Franchise Tax Board file a lien against me if my installment agreement is approved?
  6. Once I send you my amnesty installment agreement request, how soon should I expect to hear from the Franchise Tax Board?
  1. What if I'm already in an installment agreement and I want to participate in Tax Amnesty?

    If you're currently in an installment agreement with us, and would like to request an Amnesty installment agreement, contact us. Once we approve your request, we'll cancel your current agreement and establish a new amnesty installment agreement. We'll also add a $20 fee to your account balance for establishing the new agreement.

    To avoid default, you must pay all amounts due under Amnesty on your new Amnesty installment agreement by June 30, 2006. We'll apply installment payments received during this time to amnesty tax years first, unless you note otherwise. If you cancel your existing installment agreement, and later default under Amnesty, you may be subject to substantial new post-amnesty penalties. See the penalties and fees section for further information.

    Note: If you have an existing installment agreement as of February 1, 2005 (individuals and fiduciaries only) under RTC section 19008, we won't impose the amnesty penalty on any unpaid interest amount you still owe under the installment agreement after the amnesty period. (See RTC section 19738) Further, you may not realize any savings under amnesty, because amnesty only eliminates certain penalties and fees. (See: Penalties and fees that can be waived by amnesty for Individuals or Business entities) As a result, if you don't owe any penalties or fees, or the penalties and fees that will be waived under amnesty are not significant, you may want to consult a tax advisor to decide if participating in amnesty and canceling your existing installment agreement makes sense in your situation.

  2. What if I choose to participate but can't pay my Amnesty tax liabilities in full by May 31, 2005?

    You may be eligible to enter into an amnesty installment agreement that extends your final payment due date to June 30, 2006. You can apply here. If you prefer to submit a paper installment agreement application, you can get an installment agreement booklet (FTB 3567 BK Amnesty) online or by calling 800.852.5711.

  3. When do I apply for an amnesty installment agreement?

    You may apply for an amnesty installment agreement when you file your amnesty application or no later than May 31, 2005.

  4. What if my installment agreement includes both amnesty and non-amnesty tax years?

    If your new amnesty installment agreement includes non-amnesty tax years (years prior to 2003), we will continue to deduct your monthly payment after June 30, 2006, and reevaluate your installment agreement at that time.

  5. Will the Franchise Tax Board file a lien against me if my installment agreement is approved?

    The Franchise Tax Board will file state tax liens only on cases where we deem it necessary to protect the state's interest and to minimize risk. If it is necessary to file a state tax lien, we will notify you in writing in advance.

  6. Once I send you my amnesty installment agreement request, how soon should I expect to hear from the Franchise Tax Board?

    You should receive an acknowledgement letter from us within 30 days. The notice will show your monthly electronic funds transfer payment, the monthly bank transfer date, and provide you with additional information regarding your amnesty installment agreement.