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California 409A Compliance Resolution Program

PURPOSE OF BULLETIN

To advise staff that FTB will be receiving payments from employers participating in California 409A Compliance Resolution Program.

BACKGROUND

The IRS 409A Compliance Resolution Program permits employers to pay their employees’ additional taxes, a 20% tax, and an interest tax, under Internal Revenue Code 409A, due to the employees’ exercise of certain discounted stock options and stock appreciation rights in 2006.

California 409A Compliance Resolution Program is similar to the IRS program. Employers who wanted to participate in the program had until March 15, 2007, to notify FTB.

PAYMENT DUE DATE

Payments from employers participating in the program are due by June 30, 2007.

PAYMENT PROCEDURES

Employers making payments should do the following:

  • All payments must be made by check.
  • All checks must be made payable to the “Franchise Tax Board” with a notation on the check indicating payment is for “CA 409A Compliance Program.”

Payments need to be sent to the following addresses:

Standard Mail:

Franchise Tax Board
C/O California 409A Compliance Program
PO Box 942867
Sacramento, CA 94267-1111

Private Carrier or Overnight Delivery Service:

Franchise Tax Board
C/O California 409A Compliance Program
Sacramento, CA 95827

ADDITIONAL INFORMATION

For more information, see: www.ftb.ca.gov/aboutFTB/press/2007/07_08.shtml

 

Back to Public Service Bulletins - 2007