Mandatory CA Electronic Payment

published January, 2009

In 2009 if your individual (personal) CA tax liability is greater than $80,000, or if your estimated or extension payment exceeds $20,000, you’ll be required to pay electronically. If you are required and you don’t, there’s a 1% penalty for paying by paper check.

You can pay via EFW (Electronic Funds Withdrawal), on the internet or via credit card.

This is for CA tax only at this time. 

If the FTB in CA suspects you may meet the threshold, they tried to send out courtesy letters to let you know. If you are required and you didn’t get the letter, you’re still required to pay electronically.

When we prepare your tax return, we can have the government withdraw the funds from your checking or savings account automatically (I’ve been told by the IRS I’m supposed to say ‘your bank releases the funds’ so you don’t freak out! It seems all the same to me, the money leaves your account either way.) We’ve never had a problem with an electronic payment.