Personal payment plan terms and conditions

Payment plan terms and conditions

You agree to:

  • File all required valid personal income tax returns timely.
  • Pay future tax liabilities as they become due to the Franchise Tax Board.
  • Make timely monthly payments until your tax liability is paid in full.
  • Maintain adequate funds in your account for payment each month. If your financial institution cannot honor the funds withdrawal request, we may cancel your payment plan and add a penalty to your tax liability for the dishonored payment. You will be responsible for any overdraft fees charged by your financial institution.
  • Pay a $34 payment plan fee, which we will add to your tax liability. The fee amount is subject to change without further notice.
  • If your tax liability exceeds $25,000, or the payment plan period of payment exceeds 60 months, or both, your payment plan agreement is subject to periodic review to ensure you are in compliance with the terms of the agreement.
  • Confirm that the withholding rates for Employment Development Department Form DE 4 and Internal Revenue Service W-4 on file with your employer will withhold enough state income tax to pay your state income tax liability for your next state income tax return. If the withholding rates are insufficient, make changes to the forms accordingly.
  • Make any required estimated payments if you receive income from sources other than wages. We approve or reject your request based on your ability to pay and your compliance history. We may file a lien and/or request a financial statement as a condition for approval. If you fail to prove or if you misrepresent your financial condition, we may reject your payment plan request.
  • Electronic Fund Transfer (EFT) recurring payments are required if you choose to submit your payment plan request online.

We may file a state tax lien to protect the state’s interest until you pay off your tax liability (Government Code Sections 7170-7173). This may affect your credit report.