California – Electronic Tax Payments Received One Day Late

SALT Report 2019 – The California Board of Equalization reminds taxpayers that if an electronic tax payment associated with a filed return or prepayment is late by only one business day, you may be eligible for a reduction in the interest charged on the late payment.

Generally, when a tax payment is late the Board is authorized to impose interest on a monthly basis; therefore, if a payment is made one day late, interest is imposed for an entire month.  However, if the Board determines that it is inequitable to compute the interest on a monthly basis, it can instead, assess interest on a daily basis.

To qualify, all of the following conditions must be met:

  • The payment of the tax or prepayment was made electronically,
  • The payment of the tax or prepayment was made no more than one business day after the due date,
  • The taxpayer was granted relief from all penalties that applied to that payment of tax or prepayment, and
  • The taxpayer files a request for an oral hearing before the Board

If qualified, interest will be assessed from the date in which the tax or prepayment was due until the date the payment is received.

This does not apply to payments made pursuant to a deficiency determination, a determination where no return has been filed, a jeopardy determination, or deferred payments for cigarette tax stamps.

For Further Information:

California State Legislature – Senate Bill 1028

BOE-734 – Request For Oral Hearing Electronic Payments—One Day Late