One-Time Penalty Abatement

Overview

Individual taxpayers may now be eligible for a one-time cancellation of a penalty for filing or paying their taxes late.

FTB was granted the authority to provide taxpayers a one-time abatement of timeliness penalties. (Assembly Bill 194 added authority under Section 19132.5). This includes the failure-to-file penalty. (RTC 19131), and a failure-to-pay penalty (RTC 19132).

The one-time penalty abatement is:

  • A once-in-a-lifetime abatement
  • Available only to individuals subject to Personal Income Tax Law
    • Not applicable to fiduciaries, estates or trusts
  • Applicable for taxable years beginning on or after January 1, 2022

Penalties eligible for One-Time Penalty Abatement

Penalties eligible for One-Time Penalty Abatement include:

Failure to File - You did not pay by the due date of the tax return and did not file your tax return by the extended due date.

RTC 19131

Failure to Pay - You did not pay the entire amount due by your payment due date.

RTC 19132

How to qualify for One-Time Abatement

You may qualify for a One-Time Abatement if all of the following are met:

  • Be compliant with all tax return filing requirements
  • Have not previously been granted a one-time abatement under R&TC 19132.5
  • Have paid in full all outstanding liabilities (other than the timeliness penalties you are seeking to have abated) or arranged to pay pursuant to an installment agreement and be current on all installment payments

Taxpayers may choose to forgo a penalty abatement request based on reasonable cause or may request a one-time penalty abatement when reasonable cause is absent.

How to request a One-Time Penalty Abatement

A One-time Penalty Abatement can be requested in writing or verbally.

A One Time Penalty Abatement can be requested online through a MyFTB account by using Authenticated Chat or sending a MyFTB message through your secure account.

You can verbally request a One Time Penalty Abatement by calling (800) 689-4776 and speak to a representative.

Your account information will be reviewed to determine if you meet the requirements.

Tax Professionals 800-689-4776

  • Say “Tax Professional” or select 4
  • Follow the prompts and speak your selections
    • Tax Professional must enter their client’s 9-digit SSN/ITIN
  • Tax Professional will either be connected to an agent or offered a callback

Individuals call 800-689-4776

  • Wait for main menu or Select 2 for Spanish
  • Say “Individual” or select 2
  • Speak selection:
    • Current Balance
    • Say or enter 9-digit SSN
  • Individual will either be connected to an agent or offered a callback

If you have paid your entire balance in full, including the penalties you are requesting to have waived, you would need to send a written statement or Form 2918, One-Time Penalty Abatement - Individual. Please see Claim for refund | FTB.ca.gov for additional information.