Mandatory E-pay Guidance
We have received numerous requests from the tax practitioner community to provide more guidance on mandatory e-pay requirement, requesting a waiver from the requirement and requesting a waiver of a mandatory e-pay penalty. Below are some of the steps we have taken and will continue to take to make the transition to mandatory e-pay easier for you and your clients:
- Within a few days of a payment or return posting to our system that “triggers” the mandatory e-pay requirement; we send a notice to the taxpayers. The notice, Mandatory e-pay Program Participation Notice (FTB 4106 MEO), advises the taxpayers they are required to remit future payments electronically, and provides them with their options. The notice includes information on how to request a waiver from the mandatory e-pay requirement.
- To provide enough time for you or your clients to set-up e-pay or to file FTB 4107, Mandatory e-pay Election to Discontinue or Waiver Request, we have added a grace period from the time we mail FTB 4106 MEO, until we assess the initial penalty. If you or your clients are going to request a waiver from the mandatory e-pay requirement, we recommend the waiver request be submitted as soon as possible.
- We give priority to processing FTB 4107 forms. Our goal is to process the form within 30 days of receipt. Currently we are processing the FTB 4107 within 10-working days. To ensure that your client’s FTB 4107 is processed quickly, fax it to us at 916.843.0468. Keep in mind that FTB 4107 is a request for waiver of the mandatory e-pay requirement and is not a request for waiver of the e-pay penalty.
- If you feel that your client’s e-pay penalty should be waived or abated for reasonable cause, call the Tax Practitioner Hotline at 916.845.7057 or fax your penalty waiver request to 916.845.9300.
- We offer a payment-by-phone option that qualifies as an electronic payment, for your clients who do not have or prefer not to use computers. For more information regarding this option, go to ftb.ca.gov and search for FTB 4073, Mandatory e-pay Pay-by-Phone Authorization Agreement for Individuals.
- We are working with software vendors to ensure they understand how the mandatory e-pay requirement works in order for them to build appropriate interview questions into their programs.
- In addition to the information already included in our tax forms and booklets, we will add language regarding the mandatory e-pay requirement and penalty to all appropriate payment vouchers for the coming filing season. The proposed language subject to change: “Caution: You may be required to remit your payment electronically”.
Mandatory e-pay Information on our website:
- Mandatory e-pay for Individuals.
- Public Service Bulletin – Mandatory e-pay for Individuals.
- Tax News Articles:
- Accessing the Mandatory e-pay Penalty (March 2011).
- Accessing the Mandatory e-pay Penalty Begins 2011 (November 2010).
- Mandatory e-pay Penalty Update: Not Accessed in 2010 (January 2010).
- Mandatory e-pay (May 2009).
- Mandatory e-pay Required for High-Income Individual Taxpayers (November 2008).