Starting January 1, 2011, the mandatory e-pay penalty will be assessed when a person required to make payments electronically pays using any other method.
The penalty is equal to one percent (1%) of the amount paid, unless failure to pay was for reasonable cause and not willful neglect. (Revenue and Taxation Code section 19011.5)
Electronic payments are required once a person:
* Makes an estimate tax or extension payment (by check or electronic method) over $20,000.
* Files an original return with a tax liability over $80,000.
Taxpayers who were previously notified (in 2009 or 2010) they meet the e-pay requirement must make their payments electronically starting January 1, 2011 to avoid the penalty.
When you are required to make electronic payments but pay by other means, the FTB can assess a penalty equal to 1 percent of the amount paid, unless your failure to pay electronically was for reasonable cause and not willful neglect.
For more information on individual mandatory e-pay, including on how to make electronic payments and the penalty, go to ftb.ca.gov and search for mandatory epay.