CA Mandatory e-Pay Penalty Reminder

Just a reminder that beginning January 1, 2011 the California Franchise Tax Board began enforcing the mandatory e-pay penalty. The penalty applies to personal income taxpayers whose tax liability is greater than $80,000, or who make an estimated tax or extension payment that exceeds $20,000 for taxable years beginning on or after January 1, 2009. Once either of these conditions is met, all payments regardless of the type, amount, or tax year must be remitted electronically. Electronic payment methods include Electronic Funds Withdrawal (EFW), Web Pay, or credit card. There is a one percent penalty of the amount paid unless the failure to pay electronically was for reasonable cause and not willful neglect. For those that are not required to e-pay you can voluntarily pay your taxes electronically but you must first complete and submit an application to the FTB to get approval.