I’ve criticized California’s Franchise Tax Board on several occasions. However, I am going to praise them when they deserve it, and this is one of those times.
The FTB, in the past, has assessed late payment penalties when payments on some e-filed returns were not remitted with the return (on returns with a balance due). The FTB will be sending out refunds for some taxpayers, for tax years 2002-2005, where:
- The return [was] e-filed
- At least 90 percent of the tax due [was] paid by the original return due date.
- The remaining amount due [was] paid within 21 days after we accept the return.
The FTB correctly notes that you are supposed to fully pay your taxes by the due date of your return (not 90% of your taxes). But the FTB has realized that the payment won’t always accompany the return, and is rectifying a problem.
As far as we can tell, none of our clients are impacted by this issue. However, if you think you are, please contact our office so we can review your situation.
Tags: FTB