July 8, 2016

California Board of Equalization: If you make tax payments to the BOE via automatic EFT payments, immediate changes are needed to your account set-up!

Are you a business operating in California that makes sales tax or other tax payments to the California Board of Equalization using automatic EFT payments from a checking account?

Well, if you have not already done so, you need to make changes to your EFT account set-up before your next required tax payment, or your tax payments will bounce back to you.  And you may then also be sacked with penalty and interest charges.

Ouch.

So what's a changin' at the California Board of Equalization?

As of July 1, 2016, the bank that processes electronic fund transfer (EFT) payments made to the Board of Equalization was changed from Citibank to Union Bank.  Business taxpayers using this method need to update their automatic payment routing information so that their tax payments are sent to the correct account at Union Bank.

Affected taxpayers should have received prior notice about this, either by postal mail or email.  But just in case you didn't, read the BOE's news release about this change here.  More questions?  Visit the BOE's FAQ page about EFT tax payments here.

Questions about Tax Matters?

I am an Enrolled Agent licensed by the Department of the Treasury which allows me to provide tax services to taxpayers in all 50 states and US territories.  I provide tax services to individual income, business, estate, and trust clients.  Please contact me if you have questions about tax preparation, tax planning, or taxpayer representation (audit and collection) matters.

For information about my nationwide Consulting, Expert Witness, and Tax Services visit Fouts Financial Group.

Mary Rae Fouts

2 comments:

  1. If an EFT tax payment bounces back, any chance the BOE will waive penalties and interest?

    ReplyDelete
    Replies
    1. Based on my professional experience, I think there is a chance, but nothing certain. The BOE is currently saying there "may" be penalties and interest applied to bounced back EFT payments. I truly wish they would be transparent with their procedures and cut the "may" crap, and state if they will or won't waive, and under what conditions.

      Based on past experience, my expectation is that if a bounced back payment is immediately sent to the correct new account, and the taxpayer asks for waiver of penalties and interest, that they will be waived. But if the taxpayer doesn't immediately resend (and request waiver of penalties and interest if they are applied), or allows more than 1 payment to bounce back, my expectation is that penalties and interest will be assessed.

      Delete

Thanks for sharing your comments here! Mary Rae Fouts