Client is a NR of CA. No extension filed. Will owe about $15. I saw mention on the web of a $135 minimum penalty. Does this only go into effect after 10/15? So if my client files before 10/15 the penalty is only 5.5% of the $15?
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The California penalty (for individuals or fiduciaries) for failing to file within 60 days of the due date, including extensions is the lesser of $135 or the amount of tax required to be shown on the return. Thus, your client may owe $15, not $135.
For an amount this small, especially for an out-of-state taxpayer, the FTB might not bother trying to collect the $15. I would advise my client to file the return and pay the $15 tax due, and that the FTB may send a bill for the $15 penalty at a later date. If the FTB bills the T/P for that penalty, it may also bill for the late payment penalty, plus interest.Roland Slugg
"I do what I can." -
We are 150 days past the do date
Is the penalty still limited to the tax when the return is 150 days late?Comment
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