FTB imposing penalties for failure to pay electronically

The FTB has begun assessing penalties on certain taxpayers who fail to make tax payments electronically. Affected taxpayers are those who, since January 1, 2009, have incurred either a total California tax liability greater than $80,000 or any individual estimated tax or extension payment more than $20,000.

The law has been in effect since 2009 but for the past two years the FTB has not assessed any penalties, giving taxpayers time to understand and comply with the new rules. The penalty for failing to make a payment electronically is 1% of the payment amount, which can result in substantial penalties for taxpayers with large liabilities or payments. Read more