California Franchise Tax Board payment issues

[Nat Hussey]

Hello All- I've had two instances of electronic payment malfunctions with the California Franchise Tax Board. First was a 1040 payment that was automatically withdrawn but not credited to the individual's tax bill. There have been collection letters, in response to which we've provided bank records showing the payment being received by CFTB. The other was an LLC payment, again set for automatic withdrawal, but which came out of the account twice. I've checked the return and the software, both of which show the correct amount. There's no record of having filed twice by accident. Thank you!

[Just-Lisa-Now-]

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@Nat Hussey wrote:

Hello All- I've had two instances of electronic payment malfunctions with the California Franchise Tax Board. First was a 1040 payment that was automatically withdrawn but not credited to the individual's tax bill. There have been collection letters, in response to which we've provided bank records showing the payment being received by CFTB. The other was an LLC payment, again set for automatic withdrawal, but which came out of the account twice. I've checked the return and the software, both of which show the correct amount. There's no record of having filed twice by accident. Thank you!

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Well, the 1040 payment has nothing to do with the FTB...maybe you meant 540 or maybe you accidently paid the IRS instead so thats why FTB has no record?

The LLC payment process within PS is too convoluted for me, its not very clear and I dont like that.

I make them directly on the FTB Webpay website.

Have you tried calling the FTB Practitioner Hotline, they might be able to help you track down that missing payment  916-845-7057

FWIW I have not had any issues with CA payments....yet.

[Nat Hussey]

Hey there Lisa- Thanks for that! Yes, the individual payment issue was a 540 individual matter. The electronic bank entry for that sum identifies the payee as Franchise Tax Board, so it's a curiosity that they can't credit the payment. The POA process is not quick, and I'm only getting confirmation of acceptance after about a month, so, yes, the practitioner line is a good bet. The LLC payment process for us is only convoluted to the extent that 2 identical LLC payments went out of the account when only one was cued up in the software. Salut!

[Just-Lisa-Now-]

You may not need a POA to speak with the practitioner line, Ive called them many times and received info without a POA...You're not really trying to take any "action" (which would require a POA) you just want info.

Wont the doubled payment eventually be returned?   I know IRS does it automatically, FTB may not be so quick to return money though.

[bebe10402021]

I just had the same issue with Calif - Two  $800 LLC annual tax payments were withdrawn from my clients bank account. I checked Proseries PRO and I only scheduled one $800. I was speaking with another preparer who said that they had this happen a few years ago - so I don’t know if it’s something in the Proseries program or something in California Franchise Tax Board system. CFTB told the client that they just have to wait for it to fully post in their system 4 to 5 weeks and then ask for a refund - it won’t be given automatically. They said if she stopped payment on the second payment that she’ll have a bad mark on her LLC record. I don’t know what that means but I feel the worst that could happen is that she’d get a return check fee, if she stops payment rather than waiting weeks to get her money back.  How can they ding her for taxes she doesn’t owe.