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

Delinquent Form 199 penalty We impose a penalty

•

The fee is $25 if:

if you do not file your organization’s Form 199 by the

You file by the original due date but pay after that

extended due date, regardless of whether you pay the

date, or

fee. The penalty is $5 per month or part of a month

You file and pay after the extended due date.

Exception: The filing fee does not apply to the following

the Form 199 is late. The maximum penalty is $40. We

impose the penalty from the original due date of the

organizations exempt under R&TC Section 23701d:

•

return. (R&TC Section 23772)

An exclusively religious organization.

•

An organization that is controlled by a religious

Demand to File penalty If we send you a demand to

organization.

file your entity’s income tax return and you do not file

•

A school.

it, we impose a penalty of 25 percent of the tax liability

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A public charity.

before applying any payments or credits. Therefore,

your entity may owe penalties and interest even if

Electronic Funds Transfer Requirement Once a

its tax return shows that a refund is due. This penalty

corporation remits an estimated tax or extension

is in addition to the 25 percent delinquent return penalty.

payment in excess of $20,000 or has a total tax liability

(R&TC Section 19133)

in excess of $80,000 in any taxable year beginning

on or after January 1, 1995, it must make all future

late Filing penalty – partnership or limited liability

payments, regardless of the taxable year or amount,

Company We impose a penalty if you do not file

through an electronic funds transfer. Payments made

partnership or limited liability company returns by the

by other means will result in a penalty of 10 percent

extended due date. The penalty is $10 per partner or

of the amount paid. For more information regarding

member for each month or part of the month the return

this requirement, see our Electronic Funds Transfer

is late. The maximum penalty is $50 per partner or

Information Guide (FTB Pub. 3817), access our Website

member. We impose the penalty from the original due

at , or call us at (800) 852-2753. (R&TC

date of the return. (R&TC Section 19172)

Section 19011)

underpayment and Monthly penalty We impose a

Dishonored payment penalty We impose a penalty

penalty if you do not pay the total amount due shown on

if your entity’s financial institution does not honor a

your entity’s return by the original due date. The penalty

payment you make to us by check, money order, or

is 5 percent on the unpaid tax, plus 0.5 percent on the

electronic funds transfer. For a payment of $750 or

unpaid tax for each month or part of a month it remains

more, the penalty is 2 percent of the payment amount.

unpaid. The maximum penalty is 25 percent of the

For a payment less than $750, the penalty is $15

unpaid tax. (R&TC Section 19132)

or the payment amount; whichever is less. (R&TC

underpayment and Monthly penalty – limited

Section 19134)

liability Company We impose a penalty if you do not

Cost Recovery Fee We charge you cost recovery

pay your limited liability company’s:

fees if we must take collection action to resolve your

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Annual tax by the 15th day of the fourth month of its

filing and payment delinquencies. Cost recovery fees

taxable year.

may include a filing enforcement fee, a collection fee,

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Fee or nonconsenting nonresident members’ tax by

a lien fee, and fees to cover the cost of seizing and

the 15th day of the fourth month after the end of its

selling property. (R&TC Sections 19254, 19209, 19233,

taxable year.

and 19234)

The penalty is 5 percent on the unpaid tax or fee, plus

other penalties/Fees For more information about

0.5 percent on the unpaid tax or fee for each month

penalties and fees refer to R&TC Part 10.2, Division 2,

or part of a month it remains unpaid. The maximum

Chapter 4, Article 7.

penalty is 25 percent of the unpaid tax or fee. (R&TC

Section 19132)

Filing Fee

If we require your organization to file Form 199, you

must pay a fee. The amount depends upon when

you file and when you make the payment. (R&TC

Section 23772)

•

The fee is $10 if:

You file and pay by the original due date, or

You file and pay after the original, but on or before,

the extended due date.

FTB 5949 (REV 09-2006) PAGE 6

Return Information Notice Explanation Page 6

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