Tax Penalties in California

Taxpayers who are required to pay California estimated taxes often don’t pay or end up paying late. Taxpayers may be charged a penalty listed on FTB Form 5805.

There are some points that we have to talk about in case you as a tax payer have a tax penalties

No filing tax return

The penalty for not filing the tax return is 5% of the unpaid taxes for each month or part of a month in which the return is delayed. The penalty will not exceed 25% of your unpaid taxes.

combined 5%

If the non-filing penalty and the non-payment penalty apply in the same month, the non-filing penalty is reduced by the amount of the non-payment penalty for that month, for a penalty combined 5% for each month or part of a month that your return is late.

Up to 25%

If after 5 months you still have not made the payment, the penalty for not filing the tax return will reach the maximum amount, but the penalty for not paying will remain until you pay the tax, up to a maximum of 25% of the unpaid taxes to the expiration date.

More than 60 days

If you are more than 60 days late in filing your return, the minimum penalty for not filing your tax return will be $435 (for tax returns due in 2020, 2021, and 2022) or 100% of the tax required to be shown. on the statement, whichever amount is less.