Mandatory e-pay for CA Taxpayers with +$80K of Tax Per Year
Mandatory e-pay for CA Taxpayers with +$80K of Tax Per Year
Update: 11/10/09:
The FTB now has a pay-by-phone option available. See:
http://www.ftb.ca.gov/individuals/mandatory_epay/paybyphone.shtml
That Franchise Tax Board (FTB) has begun mailing notices (FTB 4106 MEO) to taxpayers who meet the mandatory e-pay threshold. The new mandatory e-pay law requires taxpayers to remit their payments electronically if their tax liability exceeds $80,000, or they made estimated tax or extension payment exceeding $20,000. The first payment that would trigger the mandatory e-pay requirement is the 2009 taxable year first quarter estimate that was due April 15, 2009. This first payment did not have to be made electronically, but all future payments should be made electronically. For the 2009 calendar year the FTB 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. (FTB e-file News, 05/05/2009)
Electronic Payment Methods
Make your tax payment using one of the following methods:
Pay online with Web Pay.
Request an Electronic Funds Withdrawal (EFW) on your e-file return. [From GROCO: This needs to be set-up with your tax return preparer..]
Pay by credit card.
A pay-by-phone option will be available in July 2009.
You may only send tax payments due to the Franchise Tax Board electronically using one of the methods above. If you owe tax to other agencies that require an electronic payment, you must make those payments directly to them.
NOTE: Making a payment using your bank’s online bill payment system is not an electronic payment. Your bank mails a paper check to FTB which does not meet the requirement to pay electronically.
For the complete story of e-pay, please see the FTB’s website at the link below.
http://www.ftb.ca.gov/individuals/Mandatory_e-pay.shtml
I am always available for questions or comments at (510) 797-8661 x237.
If you have questions or need expert tax or family office advice that’s refreshingly objective (we never sell investments), please contact us or visit our Family office page or our website at www.GROCO.com. Unfortunately, we no longer give advice to other tax professionals gratis.
To receive our free newsletter, contact us here.
Subscribe our YouTube Channel for more updates.
Alan Olsen, is the Host of the American Dreams Show and the Managing Partner of GROCO.com. GROCO is a premier family office and tax advisory firm located in the San Francisco Bay area serving clients all over the world.
Alan L. Olsen, CPA, Wikipedia Bio
GROCO.com is a proud sponsor of The American Dreams Show.
The American Dreams show was the brainchild of Alan Olsen, CPA, MBA. It was originally created to fill a specific need; often inexperienced entrepreneurs lacked basic information about raising capital and how to successfully start a business. Alan sincerely wanted to respond to the many requests from aspiring entrepreneurs asking for the information and introductions they needed. But he had to find a way to help in which his venture capital clients and friends would not mind.
The American Dreams show became the solution, first as a radio show and now with YouTube videos as well. Always respectful of interview guest’s time, he’s able to give access to individuals information and inspiration previously inaccessible to the first-time entrepreneurs who need it most. They can listen to venture capitalists and successful business people explain first-hand, how they got to where they are, how to start a company, how to overcome challenges, how they see the future evolving, opportunities, work-life balance and so much more..
American Dreams discusses many topics from some of the world’s most successful individuals about their secrets to life’s success. Topics from guest have included:
Creating purpose in life / Building a foundation for their life / Solving problems / Finding fulfillment through philanthropy and service / Becoming self-reliant / Enhancing effective leadership / Balancing family and work…
MyPaths.com (Also sponsored by GROCO) provides free access to content and world-class entrepreneurs, influencers and thought leaders’ personal success stories. To help you find your path in life to true, sustainable success & happiness. It’s mission statement:
In an increasingly complex and difficult world, we hope to help you find your personal path in life and build a strong foundation by learning how others found success and happiness. True and sustainable success and happiness are different for each one of us but possible, often despite significant challenges. Our mission at MyPaths.com is to provide resources and firsthand accounts of how others found their paths in life, so you can do the same.
Save for Retirement – Early is Better than Late
Save for Retirement – Early is Better than Late We all should plan for our retirement. The worst thing that can happen is to reach an age where you don’t want to work anymore, and not be able to quit because you don’t have the money saved to do so. Most of us start saving…
Estate Tax Confusion Continues as of 2/13/10
Estate Tax Confusion Continues as of 2/13/10 As of 2/13/10, U.S. estate tax outcomes — (and capital gains tax for the heirs) — for taxpayers who pass away in 2010, are becoming more confusing each day Congress does not act to replace expired laws. The following is a Wall Street Journal article on the complete…
Estate Tax Repeal or Revision?
Estate Tax Repeal or Revision? In 2010 the estate tax will be repealed and the gift tax rate will fall to 35%. However, this repeal is effective only for that year and the estate tax will be reinstated in some form the very next year (2011). The US Senate is considering options to reduce or…
Alternative Retirement Savings Plan: Tax Sheltered Annuity 403(b)
Alternative Retirement Savings Plan: Tax Sheltered Annuity 403(b) Tax-Sheltered Annuity (TSA), also known as a 403(b), is an alternative retirement savings plan. Not everyone can participate in this plan, and it is restricted to those who are employed by educational, cultural, or non-profit organizations such as religious groups (also known as 501 (c)(3) organizations). TAX-SHELTERED…