Scott B. Price, CPA

CA mandatory electronic payments

February 16, 2010

As we reported last year, California requires that estimated tax or extension payments over $20,000 must be remitted electronically for any taxable year beginning on or after January 1, 2009.

The state has announced that they will give taxpayers a reprieve from penalties;however, if the payments are not made electronically after January 1, 2011, penalties will be assessed.

In addition to the above requirement is that taxpayers that file an original return with a tax liability over $80,000 for a taxable year beginning on or after January 1, 2009, taxpayers are also required to make estimated and extension payments electronically.

Once a taxpayer meets the mandatory e-pay threshold, they will be required to make all subsequent payments electronically, regardless of the amount, type, or taxable year.

Please see the website below for details.

http://www.ftb.ca.gov/individuals/Mandatory_e-Pay.shtml