AB 150 payment > $20K. Now subject to mandatory e-pay? - Spidell

AB 150 payment > $20K. Now subject to mandatory e-pay?

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Message Board AB 150 payment > $20K. Now subject to mandatory e-pay?

  • This topic has 5 replies, 3 voices, and was last updated 1 week, 2 days ago by Howard Avery.
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    • #323988
      Anonymous
      Participant

      I am pretty sure nobody knows the answer to this, but we need to watch out for this.  The business penalty is a ridiculous 10% if not made electronically.  And the FTB gives zero grace on this.

    • #324003
      Lynn Freer
      Participant

      Actually, once you have a payment in excess of $20,000 the requirement starts for future payments. The FTB mails a letter advising your client of this. You can file Form 4107 if this is an unusual payment to request that the requirement not be met.

    • #324098
      Howard Avery
      Participant

      i don’t think the 10% penalty for failure to make e-pay for estimated tax payments or pay tax liabilities exceeding the 20K and 80K thresholds for corporations will apply since the PTE withholding payments are not estimated tax payments or income tax liability payments…but feel free to correct me if you disagree. here is CA RTC section 19011 for your reference…

      https://codes.findlaw.com/ca/revenue-and-taxation-code/rtc-sect-19011.html

       

       

       

    • #324150
      Lynn Freer
      Participant

      Well if they are subject to mandatory epay all payments must be made electronically. That would include the passthrough entity tax.
      <div>Assuming the tax liability (after credits) isn’t $80,000 or more, it won’t trigger the requirement because the trigger is an estimate or extension payment in excess of $20,000. And it is not an estimate or an extension payment.</div>

    • #324295
      Anonymous

      The MyFTB payments listings do include the “Pass-Through Entity Elective Tax Payment Voucher (FTB 3893)”.

    • #324309
      Howard Avery
      Participant

      so, to be very specific….let’s say an S corporation has never had an estimate tax payment or income tax payment exceeding the 20K and 80K thresholds requiring mandatory e-payments. let’s assume the 2021 PTE withholding is 100K. can I safely pay the 100k by check with form 3893 since the “all payments” requirement has not been triggered in a prior year that would require e-pay? Also, future CA payments are not required to be e-pay since the 100k is not an estimated tax payment or income tax payment as referenced in RTC 19011 above…it is a withholding tax payment?

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