Taxation: electronic payments: penalties.
- Waives penalties for first-time violations of electronic tax payment requirements starting January 1, 2026.
- Maintains a 1% penalty for subsequent failures to pay taxes electronically when required.
- Requires electronic payments for tax installments over $20,000 or total tax liability exceeding $80,000.
- Allows taxpayers to request waivers from electronic payment requirements based on specific criteria.
Senators Valladares and Allen propose modifying California's electronic tax payment requirements by introducing automatic penalty waivers for first-time violations occurring after January 1, 2026. Under current law, taxpayers who fail to remit payments electronically when required face a 1% penalty on the amount paid, unless they demonstrate reasonable cause for non-compliance.
The measure maintains existing electronic payment thresholds, which apply to individual taxpayers making estimated tax payments exceeding $20,000 or those with total tax liability over $80,000 in any tax year beginning January 1, 2009. Taxpayers may request discontinuation of electronic payments if their previous year's transactions fall below these thresholds. The Franchise Tax Board retains authority to grant waivers when payment amounts above the thresholds do not reflect a taxpayer's typical tax liability.
The bill preserves the definition of electronic remittance as payments made through Franchise Tax Board applications, including telephone payment options when available. It also continues the existing administrative framework for processing waiver requests and maintaining electronic payment systems, while exempting the Board's procedural guidelines from certain Government Code requirements.
 Benjamin AllenD Senator | Bill Author |  Not Contacted | |
 Marc BermanD Assemblymember | Bill Author | Not Contacted | |
 Joaquin ArambulaD Assemblymember | Committee Member | Not Contacted | |
 Buffy WicksD Assemblymember | Committee Member | Not Contacted | |
 Tom UmbergD Senator | Bill Author | Not Contacted |
Email the authors or create an email template to send to all relevant legislators.
Introduced By
Latest Voting History
| Ayes | Noes | NVR | Total | Result |
|---|---|---|---|---|
| 6 | 0 | 1 | 7 | PASS |
- Waives penalties for first-time violations of electronic tax payment requirements starting January 1, 2026.
- Maintains a 1% penalty for subsequent failures to pay taxes electronically when required.
- Requires electronic payments for tax installments over $20,000 or total tax liability exceeding $80,000.
- Allows taxpayers to request waivers from electronic payment requirements based on specific criteria.
Email the authors or create an email template to send to all relevant legislators.
Introduced By
Senators Valladares and Allen propose modifying California's electronic tax payment requirements by introducing automatic penalty waivers for first-time violations occurring after January 1, 2026. Under current law, taxpayers who fail to remit payments electronically when required face a 1% penalty on the amount paid, unless they demonstrate reasonable cause for non-compliance.
The measure maintains existing electronic payment thresholds, which apply to individual taxpayers making estimated tax payments exceeding $20,000 or those with total tax liability over $80,000 in any tax year beginning January 1, 2009. Taxpayers may request discontinuation of electronic payments if their previous year's transactions fall below these thresholds. The Franchise Tax Board retains authority to grant waivers when payment amounts above the thresholds do not reflect a taxpayer's typical tax liability.
The bill preserves the definition of electronic remittance as payments made through Franchise Tax Board applications, including telephone payment options when available. It also continues the existing administrative framework for processing waiver requests and maintaining electronic payment systems, while exempting the Board's procedural guidelines from certain Government Code requirements.
Latest Voting History
| Ayes | Noes | NVR | Total | Result |
|---|---|---|---|---|
| 6 | 0 | 1 | 7 | PASS |
Benjamin AllenD Senator | Bill Author | Not Contacted | |
Marc BermanD Assemblymember | Bill Author | Not Contacted | |
Joaquin ArambulaD Assemblymember | Committee Member | Not Contacted | |
Buffy WicksD Assemblymember | Committee Member | Not Contacted | |
Tom UmbergD Senator | Bill Author | Not Contacted |