Mandatory e-pay for CA Taxpayers with +$80K of Tax Per Year
By Ron Cohen, CPA, MST
Partner
Greenstein, Rogoff, Olsen & Co., LLP
Update: 11/10/09:
The FTB now has a pay-by-phone option available. See:
http://www.ftb.ca.gov/individuals/mandatory_epay/paybyphone.shtml
That Franchise Tax Board (FTB) has begun mailing notices (FTB
4106 MEO) to taxpayers who meet the mandatory e-pay threshold. The new mandatory
e-pay law requires taxpayers to remit their payments electronically if their tax
liability exceeds $80,000, or they made estimated tax or extension payment
exceeding $20,000. The first payment that would trigger the mandatory e-pay
requirement is the 2009 taxable year first quarter estimate that was due April
15, 2009. This first payment did not have to be made electronically, but all
future payments should be made electronically. For the 2009 calendar year the
FTB will not impose the mandatory e-pay penalty (1% of the
amount paid) to allow taxpayers and practitioners additional time to implement
practices and procedures to comply with the requirement. (FTB e-file News,
05/05/2009)
Electronic Payment Methods
Make your tax payment using one of the following methods:
- Pay online with
Web Pay.
- Request an Electronic Funds Withdrawal (EFW) on your e-file return. [From
GROCO: This needs to be set-up with your tax return preparer..]
- Pay by
credit card.
A pay-by-phone option will be available in July 2009.
You may only send tax payments due to the Franchise Tax Board electronically
using one of the methods above.
If you owe tax to other agencies that require an electronic payment, you must
make those payments directly to them.
NOTE:
Making a payment using your bank’s online bill payment system is not an
electronic payment. Your bank mails a paper check to FTB which does not meet the
requirement to pay electronically.
For the complete story of e-pay, please see the FTB’s website at the link below.
http://www.ftb.ca.gov/individuals/Mandatory_e-pay.shtml
I am always available for questions or comments at (510)
797-8661 x237.
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