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Billing notices and balance due returns

Some taxpayers who filed balance due, individual income tax returns have received a Return Information Notice or Statement of Tax Due. These notices indicate that we have not yet received payment of their balance due, even though many of these taxpayers paid separately by paper check on or before April 15.

This usually happens when one or more of these circumstances exist:

  • Taxpayers mail their paper checks separately from their returns (both paper and e-filed returns).
  • Checks are not mailed to the correct PO Box.
  • Payment vouchers or other identifying information do not accompany the checks.
  • Paper copies of e-filed returns are submitted with the checks.

This problem does not occur when payments are made electronically.

FTB is initiating a pilot program to explore this issue, and how to resolve it. The pilot will run for two years, and will affect 2008 PIT returns filed during the 2009 filing season.

RDPs may receive underpayment of estimated tax penalty in error

Registered Domestic Partners (RDPs) who have underpaid their 2007 tax liability may be issued a notice for underpayment of estimated tax in error.

Senate Bill 105, Stats. 2007, Ch 426, added a provision to the Revenue and Taxation Code that prohibits RDPs from being assessed a penalty for underpayment of estimated tax to the extent that the penalty was assessed because of this act or Senate Bill 1827, Stats. 2006, Ch 802.

RDPs who underpaid their tax liability regardless of their filing status as RDPs, may be subject to a penalty. If the penalty was assessed because of filing as an RDP instead of single or head of household, the penalty will be waived.

If you have clients who believe they were assessed a penalty in error, call our customer service toll-free number at 800.852.5711, or the Tax Practitioner Hotline at 916.845.7057. If they qualify, we will waive the penalty.

e-file Helps California go green

FTB has received a record number of tax returns by e-file so far this year. The 9.6 million e-file individual tax returns represent a 10 percent increase over last year. It also shows California taxpayers’ commitment to help conserve natural resources. This year alone, e-filing saved over 90 million sheets of paper.

FTB also issued nearly 4 million refunds by direct deposit. The state saved more than 150 trees by not printing those refund checks.

On the business side, e-file growth rate compared to last year is an amazing 635 percent. As of May 10, we received 128,092 business e-file tax returns. At this same time last year, we had received only 17,790 e-filed business tax returns. The nearly 130,000 returns e-filed so far this year has saved more than 20 tons of paper.

FTB offers taxpayers and tax professionals a variety of other green services online (ftb.ca.gov). View account information, make payments, and request payment installment plans electronically through our website.