{"id":1297,"date":"2023-04-20T12:52:00","date_gmt":"2023-04-20T17:52:00","guid":{"rendered":"https:\/\/www.mgocpa.com\/?post_type=perspective&#038;p=1297"},"modified":"2025-07-08T06:16:51","modified_gmt":"2025-07-08T11:16:51","slug":"franchise-tax-board-announces-penalty-abatement-program-for-california-taxpayers","status":"publish","type":"perspective","link":"https:\/\/www.mgocpa.com\/perspective\/franchise-tax-board-announces-penalty-abatement-program-for-california-taxpayers\/","title":{"rendered":"California Franchise Tax Penalty Abatement Announced\u00a0"},"content":{"rendered":"\n<p>The California Franchise Tax Board (FTB) recently announced a <a href=\"https:\/\/www.ftb.ca.gov\/pay\/penalties-and-interest\/one-time-penalty-abatement.html\" target=\"_blank\" rel=\"noreferrer noopener\">one-time penalty abatement program<\/a> for California resident and non-resident individual taxpayers.&nbsp;&nbsp;&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Here&#8217;s What You Need to Know to Claim it:<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>It\u2019s a <em>one-time<\/em> abatement of any \u201ctimeliness\u201d penalties incurred on individual income tax returns (Form 540, Form 540NR, Form 540 2EZ) for tax years beginning on or after January 1, 2022.&nbsp;&nbsp;<\/li>\n\n\n\n<li>It\u2019s only available to individual taxpayers subject to personal income tax law (so estates, trusts, and fiduciaries aren\u2019t eligible).&nbsp;<\/li>\n\n\n\n<li>It can be requested verbally or in writing starting on&nbsp;April 17, 2023.&nbsp;&nbsp;<\/li>\n\n\n\n<li>For California taxpayers who qualify for an extended 2022 income tax return due date because of the California Winter Storms (i.e., most California taxpayers), the &#8220;timeliness\u201d penalties that would be abated through this program should not start being imposed until after the new extended due date for that tax year &#8211; October 16, 2023.&nbsp;<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Which Penalties Are Eligible?<\/h2>\n\n\n\n<p>Both the Failure to File Penalty (i.e., you did not file your tax return by the due date nor did you pay by the due date of your tax return) and the Failure to Pay Penalty (i.e., you did not pay the entire amount due by your payment due date) on California individual income tax returns for tax years beginning on or after January 1, 2022 are eligible for the one-time penalty abatement.&nbsp;&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How Do I Qualify?<\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><picture><source srcset=\"https:\/\/www.mgocpa.com\/wp-content\/uploads\/2023\/04\/Franchise-Tax-Board-Announces-Penalty-Abatement_v02-1680x928-1-1024x566.webp 1024w,https:\/\/www.mgocpa.com\/wp-content\/uploads\/2023\/04\/Franchise-Tax-Board-Announces-Penalty-Abatement_v02-1680x928-1-412x228.webp 412w,https:\/\/www.mgocpa.com\/wp-content\/uploads\/2023\/04\/Franchise-Tax-Board-Announces-Penalty-Abatement_v02-1680x928-1-768x424.webp 768w,https:\/\/www.mgocpa.com\/wp-content\/uploads\/2023\/04\/Franchise-Tax-Board-Announces-Penalty-Abatement_v02-1680x928-1-1536x848.webp 1536w,https:\/\/www.mgocpa.com\/wp-content\/uploads\/2023\/04\/Franchise-Tax-Board-Announces-Penalty-Abatement_v02-1680x928-1.webp 1680w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" type=\"image\/webp\"><img src=\"https:\/\/www.mgocpa.com\/wp-content\/uploads\/2023\/04\/Franchise-Tax-Board-Announces-Penalty-Abatement_v02-1680x928-1-1024x566.png\" height=\"566\" width=\"1024\" srcset=\"https:\/\/www.mgocpa.com\/wp-content\/uploads\/2023\/04\/Franchise-Tax-Board-Announces-Penalty-Abatement_v02-1680x928-1-1024x566.png 1024w, https:\/\/www.mgocpa.com\/wp-content\/uploads\/2023\/04\/Franchise-Tax-Board-Announces-Penalty-Abatement_v02-1680x928-1-412x228.png 412w, https:\/\/www.mgocpa.com\/wp-content\/uploads\/2023\/04\/Franchise-Tax-Board-Announces-Penalty-Abatement_v02-1680x928-1-768x424.png 768w, https:\/\/www.mgocpa.com\/wp-content\/uploads\/2023\/04\/Franchise-Tax-Board-Announces-Penalty-Abatement_v02-1680x928-1-1536x848.png 1536w, https:\/\/www.mgocpa.com\/wp-content\/uploads\/2023\/04\/Franchise-Tax-Board-Announces-Penalty-Abatement_v02-1680x928-1.png 1680w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" class=\"wp-image-1406 sp-no-webp\" alt=\"\" loading=\"lazy\" decoding=\"async\"  > <\/picture><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How Do I Request a One-Time Penalty Abatement?\u00a0<\/h2>\n\n\n\n<p>You can mail in a completed <a href=\"https:\/\/www.ftb.ca.gov\/pay\/penalties-and-interest\/one-time-penalty-abatement.html\" target=\"_blank\" rel=\"noreferrer noopener\">Form FTB 2918<\/a> or call the FTB at +1 (800) 689-4776 to request penalty abatement.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What if I Can Provide That I Had Reasonable Cause for Late Filing or Late Payment?\u00a0<\/h2>\n\n\n\n<p>If you can demonstrate that you exercised ordinary care and prudence and were nevertheless unable to file your return or pay your taxes on time, then you may qualify for penalty relief due to reasonable cause. Reasonable cause is determined on a case-by-case basis and considers all the facts of your situation. &nbsp;<\/p>\n\n\n\n<p>You may request penalty abatement based on reasonable cause by mailing in a completed Form <a href=\"https:\/\/www.ftb.ca.gov\/forms\/misc\/2917.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">FTB 2917<\/a> or by filling out a reasonable cause request on your MyFTB online account.&nbsp;Penalty abatement based on reasonable cause may \u2013 depending on the circumstances \u2013 be preferable to using up your one-time penalty abatement request.&nbsp;&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How We Can Help<\/h2>\n\n\n\n<p>If you need help with relief for your &#8220;timeliness&#8221; penalties or if you need help with any other state and local tax matters, please reach out to our experienced <a href=\"https:\/\/www.mgocpa.com\/solution-and-industry\/state-and-local-tax\/\" target=\"_blank\" rel=\"noreferrer noopener\">State and Local Tax team<\/a>.&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The California Franchise Tax Board (FTB) recently announced a one-time penalty abatement program for California resident and non-resident individual taxpayers.&nbsp;&nbsp;&nbsp; Here&#8217;s What You Need to Know to Claim it: Which Penalties Are Eligible? Both the Failure to File Penalty (i.e., you did not file your tax return by the due date nor did you pay [&hellip;]<\/p>\n","protected":false},"featured_media":1298,"template":"","meta":{"_acf_changed":false,"content-type":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"perspective_topic":[146,25,54,16,15],"perspective-type":[42],"class_list":["post-1297","perspective","type-perspective","status-publish","has-post-thumbnail","hentry","perspective_topic-individual-tax","perspective_topic-state-and-local-tax","perspective_topic-tax-advisory","perspective_topic-tax-guidance","perspective_topic-tax-solutions","perspective-type-articles"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.8 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>California Franchise Tax Penalty Abatement Announced\u00a0 - MGO CPA | Tax, Audit, and Consulting Services<\/title>\n<meta name=\"description\" content=\"Learn how California taxpayers can benefit from the FTB&#039;s one-time penalty abatement program for late filings and payments.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.mgocpa.com\/perspective\/franchise-tax-board-announces-penalty-abatement-program-for-california-taxpayers\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"California Franchise Tax Penalty Abatement Announced\u00a0 - 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