Assessing the Mandatory e-pay Penalty Begins 2011
Starting January 1, 2011, the mandatory e-pay penalty will be assessed when a person required to make payments electronically pays using any other method.
The penalty is equal to one percent (1%) of the amount paid, unless failure to pay was for reasonable cause and not willful neglect. (Revenue and Taxation Code section 19011.5)
Electronic payments are required once a person:
- Makes an estimate tax or extension payment (by check or electronic method) over $20,000.
- Files an original tax return with a tax liability over $80,000.
Electronic payments may be made using any of the following methods:
- Pay online with Web Pay at ftb.ca.gov.
- Request an Electronic Funds Withdrawal (EFW) when e-filing a tax return.
- Pay by credit card online at www.officialpayments.com or by calling toll free 1.800.272.9829.
- Use the pay-by-phone option by completing and submitting form FTB 4073, Mandatory e-pay Pay-by-Phone Authorization Agreement for Individuals, available at ftb.ca.gov.
Fiduciaries, estates, and trusts are not required to make payments electronically, regardless of the amount owed.