Return Information Notice Explanation (Page 5 of 6) in pdf

xF The Pharmacy Board notified us that your entity

note: We do not compound the rate when computing

has an outstanding liability with them. Your

the estimated tax penalty.

Franchise Tax Board refund was offset against that

InTEREsT RATEs

liability. Refer to the enclosed notice for the amount

pERIoD

RATE

credited to the Pharmacy Board.

yA The Employment Development Department notified

01/01/2007 – AND LATER

us that your entity has an outstanding liability

07/01/2006 – 12/31/2006

with them. Your Franchise Tax Board refund was

01/01/2006 – 06/30/2006

offset against that liability. Refer to the enclosed

07/01/2005 – 12/31/2005

notice for the amount credited to the Employment

07/01/2004 – 06/30/2005

Development Department. You can contact them at

07/01/2003 – 06/30/2004

07/01/2002 – 06/30/2003

(916) 464-2079.

01/01/2002 – 06/30/2002

ZC The overpayment is due to duplicate or

01/01/2001 – 12/31/2001

additional payments.

01/01/2000 – 12/31/2000

ZD If you would like this credit refunded, please return

07/01/1999 – 12/31/1999

a copy of this notice with a request for refund.

01/01/1999 – 06/30/1999

Please note that if we refund the credit, your

07/01/1995 – 12/31/1998

corporation may be subject to an estimated tax

01/01/1995 – 06/30/1995

penalty for the next tax year.

For corporation overpayments:

ZE We applied all or part of the overpayment to the

01/01/2007 – AND LATER

amount owed on a subsidiary account.

07/01/2006 – 12/31/2006

ZF We base the tax for the year in which a corporation

01/01/2006 – 06/30/2006

dissolves or withdraws on the income for that

07/01/2005 – 12/31/2005

year plus the income for the preceding year, but it

07/01/2003 – 06/30/2005

cannot be less than the minimum tax.

07/01/2002 – 06/30/2003

Zg We disallowed your request for waiver of penalties

For prior years’ rates, please call us at the

and interest due to a disaster or act of terrorism for

TELEPHONE AND INTERNET ASSISTANCE

one of the following reasons:

numbers shown on this insert, or visit our Website at:

• Your tax year does not fall within the designated

time period for claiming the disaster or

terrorism loss.

AuToMATIC ExTEnsIons

• Your loss did not occur within the designated

The automatic extension of time to file does not apply

disaster or terrorism area.

if your entity is suspended or forfeited through the

Zh We partially disallowed your request for waiver of

California Secretary of State or the Franchise Tax Board

penalties and interest due to a disaster or act of

on the original due date of the return.

terrorism. We can only waive penalties and interest

pEnAlTIEs AnD FEEs

for the duration of the administrative relief period.

Estimated Tax penalty We impose a penalty if

InTEREsT InFoRMATIon

your entity does not pay, pays late, or underpays an

We refer below to the California Revenue and Taxation

estimated tax installment. We calculate the penalty on

Code as R&TC.

the unpaid amount from the due date of the estimated

tax installment to the date we receive your payment

Generally, interest accrues on unpaid taxes from the

or to the due date of the return, whichever is earlier.

original due date of the return until the date we receive

(R&TC Section 19142-19161)

payment. Interest accrues on unpaid limited liability

company annual tax from the due date of the annual

Delinquent Return penalty If you do not file your

tax. We also charge interest on penalties. (R&TC

entity’s income tax return by the extended due date,

Sections 19521 and 19101)

we impose a penalty of 5 percent of the tax due, after

applying any payments and credits made on or before

We charge C corporations an interest rate 2 percent

the original return due date, for each month, or part of

greater than the current rate if both of the following

a month the return is late. The maximum penalty is 25

are true:

percent. We impose the penalty from the original due

•

Their total unpaid tax for any taxable year

date of the return. (R&TC Section 19131)

exceeds $100,000.

Delinquent Return penalty – limited liability

•

They do not pay their full balance due within 30

Company If you do not file your limited liability

days of the original notice date.

company’s income tax return by the extended due

The following are rates for computing interest on:

date, we impose a penalty. After we deduct your timely

•

Underpayments

payments and credits, we charge 5 percent monthly on

•

Overpayments

the fee and/or nonconsenting nonresident members’ tax

•

Penalties

indicated on your return, not to exceed 25 percent. We

impose the penalty from the original return due date.

(R&TC Section 19131)

FTB 5949 (REV 09-2006) PAGE 5

Return Information Notice Explanation Page 5

Related Articles

Related forms

Related Categories