The California Franchise Tax Board can revoke the installment agreement it has made with you and your business if:
New liabilities accrue.
Payments are dishonored.
A business entity repeatedly fails to make I/A payments.
Your business can enter an installment agreement if you cannot pay your total balance in 90 days due to a financial hardship. Under this program, you would agree to pay a specified amount on a specified day each month.
The requirements to meet when you request an installment agreement are:
You must file any delinquent tax returns.
You may need to complete a financial condition form and then send it to the Franchise Tax Board. If necessary, the FTB may require other financial documentation to process your installment agreement request.
FTB staff will determine if an account qualifies for an installment agreement and the time period allowed.
Even if you enter an installment agreement, the FTB may need to file a lien to secure your tax debt. Applicable penalties, fees, and interest accrue until the balance is paid. This increases your balance due.
If you need tax help, contact Mitchell A. Port at (310) 559-5259.