Delay in penalties for mandatory e-pay

Under the new California budget that passed last fall, certain higher-income taxpayers are required to make tax payments electronically. (We posted about this in November and January.) The California Franchise Tax Board has just announced that, during 2009, it will not impose penalties for taxpayers who fail to comply with this new law. Taxpayers who meet the requirements for e-pay will first be subject to penalties starting January 1, 2010. "FTB realizes that some taxpayers and practitioners may need additional time to implement practices and procedures to comply with the requirement. Therefore, during the 2009 calendar year, taxpayers subject to the mandate who remit their payment by check instead of electronically will not be assessed an 'e-pay penalty' (1% of the amount paid)."