Tax Penalties In California

California has almost 70 different types of penalties it can impose in the area of tax. The California Franchise Tax Board has a “penalty reference chart” which provides the name of the tax penalty, the California Revenue and Taxation Code Section on which the penalty is based, the equivalent Internal Revenue Code Section, the reason for imposition of the penalty and the penalty computation. The penalty reference chart is here.

Some of the FTB penalties are for the following types of things:

Limited Liability Company (LLC) Fee Estimate Penalty
Withholding Penalties
Unqualified or Suspended Corporation Doing Business in this State
Underpayment of Estimated Tax (Addition to Tax)

Failure to File Correct Information Return
Frivolous Proceedings; Failure to Exhaust Administrative Remedies
Noneconomic Substance Transaction Understatement
Failure of Exempt Organizations and Trusts to File Annual Information Return

There are plenty more listed in the FTB chart.