Section 43170 - Remittance by electronic funds transfer(a) Any person whose estimated tax liability under this part averages twenty thousand dollars ($20,000) or more per month, as determined by the California Department of Tax and Fee Administration pursuant to methods of calculation prescribed by the California Department of Tax and Fee Administration, shall remit amounts due by an electronic funds transfer under procedures prescribed by the California Department of Tax and Fee Administration.(b) Any person whose estimated tax liability under this part averages less than twenty thousand dollars ($20,000) per month may elect to remit amounts due by electronic funds transfer with the approval of the California Department of Tax and Fee Administration.(c) Any person remitting amounts due pursuant to subdivision (a) or (b) shall perform electronic funds transfer in compliance with the due dates set forth in Article 1 (commencing with Section 43151). Payment is deemed complete on the date the electronic funds transfer is initiated if settlement to the state's demand account occurs on or before the banking day following the date the transfer is initiated. If settlement to the state's demand account does not occur on or before the banking day following the date the transfer is initiated, payment is deemed to occur on the date settlement occurs.(d) Any person remitting taxes by electronic funds transfer shall, on or before the due date of the remittance, file a return for the preceding reporting period in the form and manner prescribed by the California Department of Tax and Fee Administration. Any person who fails to timely file the required return shall pay a penalty of 10 percent of the amount of taxes, exclusive of previously remitted installments, with respect to the period for which the return is required.(e) Any person required to remit taxes pursuant to this article who remits those taxes by means other than appropriate electronic funds transfer shall pay a penalty of 10 percent of the taxes incorrectly remitted.(f) Any person who fails to pay any tax to the state or any amount of tax, installment, or prepayment required to be collected and paid to the state, except amounts of determinations made by the California Department of Tax and Fee Administration under Article 2 (commencing with Section 43201), within the time required shall pay a penalty of 10 percent of the tax or amount of tax, in addition to the tax or amount of tax, plus interest at the modified adjusted rate per month, or fraction thereof, established pursuant to Section 6591.5, from the date on which the tax or amount of tax required to be collected became due and payable to the state until the date of payment.(g) In determining whether a person's estimated tax liability averages twenty thousand dollars ($20,000) or more per month, the California Department of Tax and Fee Administration may consider tax returns filed pursuant to this part and any other information in the California Department of Tax and Fee Administration's possession.(h)(1) The penalties imposed by subdivisions (d), (e), and (f) shall be limited to a maximum of 10 percent of the taxes due for any one return, installment, or prepayment. Any person remitting taxes by electronic funds transfer shall be subject to the penalties under this section and not Section 43155.(2) Notwithstanding paragraph (1), any person remitting fees imposed pursuant to Section 25205.5 of the Health and Safety Code by electronic funds transfer is subject to the penalties imposed by this section and the penalties imposed by Section 43155.01.(i) The board shall promulgate regulations pursuant to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code for purposes of implementing this section.Ca. Rev. and Tax. Code § 43170
Amended by Stats 2024 ch 72 (SB 156),s 56, eff. 7/2/2024.Amended by Stats 2005 ch 519 (AB 1765),s 17, eff. 10/4/2005.Added by Stats 2000 ch 923 (AB 2894), s 45, eff. 1/1/2001.