New Waiver of Mandatory e-Payment Requirement
Last year, it was brought to our attention by the tax practitioner community, that there was no permanent waiver of the mandatory e-pay requirement for taxpayers who have a permanent physical or mental impairment that prevents them from using a computer.
In response to their concerns, we determined that we could handle these permanent waiver requests administratively. Beginning March 29, 2012, taxpayers who are subject to the mandatory e-pay requirement can request a permanent waiver of the requirement.
To request the permanent waiver taxpayers must submit FTB 4107, Mandatory e-Pay Election to Discontinue or Waiver Request with a signed physician’s affidavit that a permanent physical or mental impairment prevents the taxpayer from using a computer. We will deny the taxpayer’s request if the physician affidavit of permanent physical or mental impairment is incomplete or not attached to FTB 4107.
We will inform the taxpayer in writing whether the request for a permanent waiver is approved or denied.
Waiver of a Previously Assessed Mandatory e-Pay Penalty
When taxpayers file FTB 4107, they can check a box on the form and have us review their account for possible waiver of a previously imposed mandatory e-pay penalty if all the following exists:
- They received a mandatory e-pay penalty for payments made before receiving approval of their permanent physical or mental impairment request.
- The date on the physician’s affidavit of permanent physical or mental impairment pre-dates the assessment of the penalty.
- The statute of limitations for filing a claim for refund is still open per Revenue and Taxation Code Section19306.