The California Franchise Tax Board imposes a penalty if you do not pay the total amount due shown on your tax return by the original due date. The penalty is 5 percent of the unpaid tax (underpayment), plus 0.5 percent of the unpaid tax for each month or part of a month it remains unpaid (monthly).

If you filed your income tax return or paid your income taxes after the due date, you received a penalty. To avoid penalties in the future, file or pay by the due date.

5% of the amount due: From the original due date of your tax return. After applying any payments and credits made, on or before the original due date of your tax return, for each month or part of a month unpaid.

Estimated tax payment safe harbor details The IRS will not charge you an underpayment penalty if: You pay at least 90% of the tax you owe for the current year, or 100% of the tax you owed for the previous tax year, or. You owe less than $1,000 in tax after subtracting withholdings and credits.

Contractors. Page 4 FTB Pub. 1001 Revenue Procedure 2021-20 allows taxpayers to make an election to report the eligible expense deductions related to a PPP loan on a timely filed original 2021 tax return including extensions.

Don't pay enough estimated tax. Don't have enough taxes withheld from your paycheck. Don't pay electronically when you're required. Make a dishonored payment (bounced check, insufficient funds)

CA FTB Penalty Abatement The FTB defines “reasonable cause” to mean that the taxpayer exercised ordinary business care and prudence in meeting their tax obligations but failed to comply.