Bill > SB591

This bill modifies penalty structures for electronic funds transfer (EFT) payments to the California Franchise Tax Board, changing the existing percentage-based penalties to fixed dollar amounts. Specifically, for corporations and individuals who are required to make tax payments via electronic funds transfer but fail to do so, the bill replaces the current 10% and 1% penalties with a flat $100 penalty for a first violation and a $500 penalty for subsequent violations. The bill applies to various tax payments, including estimated taxes and extension payments, where taxpayers meet certain financial thresholds (such as estimated tax payments or total tax liabilities exceeding specific dollar amounts). The legislation also includes legislative findings emphasizing the importance of maintaining a fair tax system with penalties that are proportionate to the violations committed. By introducing fixed-dollar penalties instead of percentage-based penalties, the bill aims to create a more consistent and potentially less punitive approach to handling electronic payment compliance for taxpayers.

Budget and Finance

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260SB591