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Paying Electronically Saves Time

April 2009 - We all know that going paperless saves time, hassle, and trees. Paying electronically means your client doesn’t have to spend time writing and mailing a check. It also ensures that their payment is quickly applied to their account. We encourage them to use one of the many options we offer for electronic payments.

But which is right for them? We have provided you a brief summary of the options below. We also created an e-pay toolkit that contains posters, pamphlets, and other resources you can use to help your clients understand these options. Using the toolkit is another way to show your clients your commitment to making their lives easier. Go to ftb.ca.gov and search for e-pay toolkit.

Electronic Funds Withdrawal (EFW):

Use this option to pay electronically when e-filing. Your client can pay when they e-file their balance due return, and not worry about having to remember to mail a check. They can choose the amount they want to pay, as well as the date they want the funds to be transferred from either their checking or savings account. Your clients can even schedule electronic withdrawal for their next year’s estimated tax payments when they e-file. Check your software provider’s instructions for the availability of this option.

Web Pay:

Your clients can request a debit to their account online, at any time, to pay any FTB liability, including:

  • A balance due on their current-year tax return.
  • Extension payments (Form FTB 3519).
  • Estimated tax payments (Form 540-ES).
  • Prior-year amounts.
  • Any bill.

Similar to EFW, your clients choose the amount to pay and the date the funds should be transferred from their checking or savings accounts.

To use Web Pay, all your clients need to enter are their social security number and last name.

Credit Card:

Your clients can use their credit cards to pay any bill when they make a payment through Official Payments Corporation. Official Payments Corporation charges a convenience fee of 2.5 percent (minimum $1).

Installment Payments:

If your clients are unable to pay their balances in full, encourage them to apply for an installment agreement online. Generally, your clients qualify if they:

  • Owe a balance of $10,000 or less.
  • Agree to pay their balance in 36 months or less.
  • Have filed all personal income tax returns.

Online installment agreements are available for balances of $10,000 or less. We also accept installment agreement applications for balances up to $25,000, and for payment periods up to 60 months. However, taxpayers who owe balances between $10,000 and $25,000 should call 800.689.4776, to discuss setting up an installment agreement.