Payment Options - Voluntary Compliance Initiative 2 (VCI 2)

Individuals

Businesses


Check or money order payments

Individuals

  1. Using black or blue ink, make your check or money order payable to the “Franchise Tax Board.”
  2. Write your SSN or ITIN and “VCI 2” along with the applicable tax year on the check or money order.
  3. Enclose, but do not staple, your payment with your Participation Agreement and amended tax return.
  4. Do not send cash.

Businesses

  1. Using black or blue ink, make your check or money order payable to the “Franchise Tax Board.”
  2. Write your California Business Entity Number and “VCI 2” along with the applicable tax year on the check or money order.
  3. Enclose, but do not staple, your payment with your Participation Agreement and amended tax return.
  4. Do not send cash.

Web Pay

Tax Deposit for Individuals

When you make your payment, you must identify your payment as a tax deposit.

If you use the Web Pay option, you must file your Participation Agreement and amended return by fax at 916.845.9000 at the same time you make your payment.

Note: If you are a mandatory e-pay taxpayer, you must make electronic payments using Web Pay.

You will need the following to use Web Pay:

  • Your social security number.
  • The last name you used when you filed your 2009 income tax return. If you changed your last name or you have never filed a California tax return, see Web Pay - Frequently Asked Questions.
  • Your bank account number and bank routing number.
  • A compatible browser and operating system. We recommend that you log out and close your browser when you are done to ensure the highest level of security.

Tax Deposit for Businesses

If you have not registered to use Web Pay for Businesses, you will need to complete a one-time registration.

When you make your payment, you must identify your payment as a tax deposit.

If you use the Web Pay option, you must file your Participation Agreement and amended return by fax at 916.845.9000 at the same time you make your payment.

Note: If you are a mandatory EFT taxpayer, you may use this payment option.

You will need the following to use Web Pay:

  • Your user name and password.
  • Your bank account number and routing number.
  • A compatible browser and operating system. We recommend that you log out and close your browser when you are done to ensure the highest level of security.

Electronic Funds Transfer (EFT) payment for Businesses

If you have already filed an FTB 3815 , Authorization Agreement for Electronic Funds Transfer, and registered for the ACH Debit or ACH Credit payment method, you should initiate your EFT payment according to the instructions that you received upon registration.

When making your payment, identify your payment as a Notice of Proposed Assessment/Tax Deposit Payment (Tax Type Code 02512).

Indicate the date that you initiated your EFT payment on the Participation Agreement.

For more information on making EFT payments, refer to the EFT Frequently Asked Questions.

Existing tax deposit

If you made a tax deposit before August 1, 2011, you can apply the tax deposit to the additional tax and interest reported on your VCI 2 amended return.

  • Complete the entries for amount of the tax deposit and the date that you made the tax deposit on the Participation Agreement.
  • If you wish to apply a tax deposit that you previously made for a different tax year to the payment of the tax and interest for the year in which you are participating in VCI 2, you must:
    • Complete FTB Form 3581, Tax Deposit Refund and Transfer Request.
    • Indicate the date that you made the tax deposit on the Participation Agreement.
    • Include the Form FTB 3581 with your Participation Agreement and amended return.
      Important: Do not send the Form 3581 to the address on the form; it must be submitted with your Participation Agreement and amended return.

Installment agreement

Individuals

If you have a financial hardship and cannot pay in full by October 31, 2011, you may request an installment payment agreement to extend your final payment due date for VCI 2 tax and interest to June 15, 2012.

To request an installment agreement, you must:

  • Submit an Installment Agreement, FTB 3561.
  • Make your first installment payment, at least 10 percent or more of your VCI 2 liability, with your Participation Agreement and amended return.
    Important: Do not send FTB 3561 to the address indicated on the form; it must be included with your Participation Agreement and amended return.

You cannot use the online electronic installment agreement request for VCI 2 liabilities.

If your installment agreement request is approved, you will be notified and you will be required to make your subsequent installment payments each month using Web Pay. If you do not make full payment of your tax and interest by June 15, 2012, pursuant to your installment payment agreement, you will be subject to the full range of penalties.

If your installment payment agreement request is denied, you will be notified and required to make full payment of the tax and interest by October 31, 2011 to participate in VCI 2.

Note: If you are currently making payments pursuant to an installment agreement plan for tax liabilities for which you are electing to participate in VCI 2, you must request a new installment agreement so that your tax and interest will be fully paid by June 15, 2012. Follow the procedures above to request an installment agreement for the VCI 2 tax and interest.

Businesses

If you have a financial hardship and cannot pay in full by October 31, 2011, you may request an installment payment agreement to extend your final payment due date for VCI 2 tax and interest to June 15, 2012.

To request an installment agreement, you must:

  • Submit a Statement of Financial Condition, FTB 9310DBC.
  • Make your first installment payment, at least 10 percent or more of your VCI 2 liability, with your Participation Agreement and amended return.

You cannot use the online electronic installment agreement request for VCI 2 liabilities.

If your installment agreement request is approved, you will be notified and you will be required to make your subsequent installment payments each month using Web Pay for Businesses. If you do not make full payment of your tax and interest by June 15, 2012, pursuant to your installment payment agreement, you will be subject to the full range of penalties.

If your installment payment agreement request is denied, you will be notified and required to make full payment of the tax and interest by October 31, 2011 to participate in VCI 2.

Note: If you are currently making payments pursuant to an installment agreement plan for tax liabilities for which you are electing to participate in VCI 2, you must request a new installment agreement so that your tax and interest will be fully paid by June 15, 2012. Follow the procedures above to request an installment agreement for the VCI 2 tax and interest.