California Mandatory Electronic Payment Requirement for Certain Taxpayers
Effective January 1, 2011, the State of California Franchise Tax Board (FTB) began assessing a 1% penalty for certain customers who do not use an E-Pay option to pay tax due.
This would affect California taxpayers who:
- Make an estimated tax or extension payment (by check or electronic method) over $20,000 for a taxable year beginning on or after January 1, 2009; OR
- File an original return with a tax liability over $80,000 for a taxable year beginning on or after January 1, 2009.
If you make a payment or file a return meeting the mandatory requirement, the California Franchise Tax Board will send you an FTB 4106 MEO, Mandatory e-pay Program Participation Notice, advising you that all future payments must be remitted electronically (e.g. via Web Pay, Electronic Funds Withdrawal, Credit Card or Pay-by-Phone).
Note: If you do not receive notification from the California Franchise Tax Board, you are still required to remit payments electronically once you meet either of the above thresholds for ALL future payments.
For the latest information, click here to visit the California Franchise Tax Board.
