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Filing Compliance Agreement

In this document, we refer to the California Revenue and Taxation Code as R&TC.

Franchise Tax Board (FTB) provides business entities, partnerships, and trusts the opportunity to voluntarily enter into a Filing Compliance Agreement (FCA) if they have a filing requirement for past years, and an unpaid California tax liability. Qualified business entities, partnerships, and trusts eligible to enter into a FCA must voluntarily disclose, file, and make full payment to us for all years they failed to file a California tax return. Based upon showing reasonable cause, FTB will waive penalties where reasonable cause is a defense associated with unfiled tax returns identified in the agreement. Business entities, partnerships, and trusts who received a notice from FTB cannot be considered for FCA.

Voluntary Disclosure Program (VDP) vs. FCA

The Voluntary Disclosure Program (VDP) is a statutory program (RT&C Section 19191). For more information on VDP, go to our Voluntary Disclosure Program page. The FCA is under FTB’s authority to administer tax (RT&C Section 19501) and to abate penalties for which reasonable cause is a defense. In addition, FCA is not limited to a specific look-back period.


If you are in the class of business entities, partnerships, or trusts described in RT&C Section 19192 and you are not eligible for VDP, you may apply to enter into an FCA. The following partnerships and the nonresident partners of the partnerships are eligible to apply for an FCA:

  • Partnerships as defined under RT&C Section 17008,
  • Limited Partnerships (LP) as defined under RT&C Section 17935, and
  • Limited Liability Partnerships (LLP) as defined under Corporations Code Section16101.

A shareholder of an S corporation, a beneficiary, a member of an LLC or a partner, who are nonresidents, may apply for agreement if the entity also files an FCA request.

If you received a notice from us requesting a tax return, you do not qualify for FCA.


Send the completed FTB 5841 (NEW 09-2010), Request for Filing Compliance Agreement to us at:

Franchise Tax Board
PO Box 1779
Rancho Cordova CA 95741-1779

Acceptance of FCA Request

If we accept your request to enter into an FCA, you will have an agreement with FTB for the requested approved tax years. You must submit the required tax returns and payment by the date specified in the agreement.

Waived Penalties and Interest

The decision to waive penalties will be made on a case-by-case basis and is limited to penalties for which reasonable cause is a defense. The most commonly waived penalties are the Failure to File penalty (RT&C Section 19131), and the Failure to Pay Tax penalty (RT&C Section 19132). FTB cannot waive underpayment of estimated tax or amnesty penalties based on reasonable cause. We also cannot waive interest.


Full payment is usually due within 30 days from the date of the agreement. You can make installment payments if you meet specific requirements.

Voided Agreement

FTB considers all of the information you provide when making the determination not to impose penalties when reasonable cause is a defense. If at any time the information is determined to be inaccurate or false, we retain the right to pursue all applicable penalties, and the FCA will be null and void.