Per California Franchise Tax Board, "taxpayers are required to remit all their payments electronically once an estimate or extension payment exceeding $20,000 or when the taxpayer file's an original tax return with a total tax liability over $80,000 for any taxable year that begins on or after January 1, 2009.
Once this threshold has been made, all subsequent payments regardless of amount, tax type, or taxable year must be remitted electronically. The first payment that would trigger the mandatory e-pay requirement does not have to be made electronically.
"Individuals that do not send the payment electronically will be subject to a one percent noncompliance penalty." However, taxpayers can request a waiver from mandatory e-pay if one or more of the following is true:
- The Taxpayer has not made an estimated tax or extension payment in excess of $20,000 during the current or previous taxable year.
- The Taxpayer's total tax liability reported for the previous taxable year did not exceed $80,000.
- The amount the taxpayer paid is not representative of their total tax liability.
Electronic payments can be made using Web Pay on FTB’s website, electronic funds withdrawal (EFW) as part of the e-file return, or a credit card. For more information or to obtain the waiver form, go to ftb.ca.gov and search for mandatory epay.
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