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Tax News
Assessing the Mandatory e-pay Penalty Begins 2011

Starting January 1, 2011, the mandatory e-pay penalty will be assessed when a person required to make payments electronically pays using any other method.

The penalty is equal to one percent (1%) of the amount paid, unless failure to pay was for reasonable cause and not willful neglect. (Revenue and Taxation Code section 19011.5)

Electronic payments are required once a person:

  • Makes an estimate tax or extension payment (by check or electronic method) over $20,000.
  • Files an original tax return with a tax liability over $80,000.

Electronic payments may be made using any of the following methods:

Fiduciaries, estates, and trusts are not required to make payments electronically, regardless of the amount owed.

Back to November 2010 Tax News