Wednesday, May 6, 2009

California Mandatory E-Pay Requirement

Received the following message from the California Franchise Tax Board (FTB):

Mandatory e-Pay Message

Know that FTB has begun mailing notices (
FTB 4106 MEO) to taxpayers who meet the mandatory e-pay threshold.

The new mandatory e-pay law requires certain taxpayers to remit their payments electronically. The first payment that would trigger the mandatory e-pay requirement is the 2009 taxable year first quarter estimate that was due April 15th, 2009. This first payment did not have to be made electronically, but all future payments should be made electronically.

For the 2009 calendar year we 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.

This requirement is only for taxpayers when their extension payments or estimated tax payments are over $20,000 or their total tax liability is over $80,000. There are a couple of ways to pay electronically: Web Pay or pay by Credit Card. To see other payment options available to California tax payers visit: Other states offer similar type payment arrangements and make it more convenient and secure. Arizona offers a credit card option as well as a web payment (check out for this payment option).

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