ARTICLE 1.1. Payment by Electronic Funds Transfer
(Article 1.1 added by Stats. 2000, Ch. 923, Sec. 16.)
30190. (a) Any person whose estimated tax liability under this part averages
twenty thousand dollars ($20,000) or more per month, as determined by
the board pursuant to methods of calculation prescribed by the board,
shall remit amounts due by an electronic funds transfer under procedures
prescribed by the board.
(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 board.
(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 30181). 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
(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 board. Any person
who fails to timely file the required return shall pay a penalty of 10
percent of the amount of taxes 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 required to be collected and paid to the state, except amounts of
determinations made by the board under Article 3 (commencing with Section
30173) or Article 2 (commencing with Section 30201) or Article 3 (commencing
with Section 30221), 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 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 board may consider
tax returns filed pursuant to this part and any other information in the
(h) 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. Any person
remitting taxes by electronic funds transfer shall be subject to the penalties
under this section and not Section 30281.
(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.
(Amended by Stats. 2005, Ch. 519, Sec. 10. Effective October 4, 2005. Operative
January 1, 2006, by Sec. 25 of Ch. 519.)
30191. If the board finds that a person’s failure to make payment by an
appropriate electronic funds transfer in accordance with board procedures
is due to reasonable cause and circumstances beyond the person’s
control, and occurred notwithstanding the exercise of ordinary care and
in the absence of willful neglect, that person shall be relieved of the
penalty provided in subdivision (e) of Section 30190. Any person seeking
to be relieved of the penalty shall file with the board a statement under
penalty of perjury setting forth the facts upon which he or she bases
his or her claim for relief.
(Added by Stats. 2000, Ch. 923, Sec. 16. Effective January 1, 2001.)
30192. (a) “Electronic funds transfer” means any transfer of funds,
other than a transaction originated by check, draft, or similar paper
instrument, that is initiated through an electronic terminal, telephonic
instrument, or computer or magnetic tape, so as to order, instruct, or
authorize a financial institution to debit or credit an account. Electronic
funds transfers shall be accomplished by an automated clearinghouse debit,
an automated clearinghouse credit, or by Federal Reserve Wire Transfer
(b) “Automated clearinghouse” means any federal reserve bank,
or an organization established in agreement with the National Automated
Clearing House Association, that operates as a clearinghouse for transmitting
or receiving entries between banks or bank accounts and which authorizes
an electronic transfer of funds between these banks or bank accounts.
(c) “Automated clearinghouse debit” means a transaction in
which the state, through its designated depository bank, originates an
automated clearinghouse transaction debiting the person’s bank account
and crediting the state’s bank account for the amount of tax. Banking
costs incurred for the automated clearinghouse debit transaction shall
be paid by the state.
(d) “Automated clearinghouse credit” means an automated clearinghouse
transaction in which the person through his or her own bank, originates
an entry crediting the state’s bank account and debiting his or
her own bank account. Banking costs incurred for the automated clearinghouse
credit transaction charged to the state shall be paid by the person originating
(e) “Fedwire transfer” means any transaction originated by
a person and utilizing the national electronic payment system to transfer
funds through the federal reserve banks, when that person debits his or
her own bank account and credits the state’s bank account. Electronic
funds transfers pursuant to Section 30190 may be made by Fedwire only
if payment cannot, for good cause, be made according to subdivision (a),
and the use of Fedwire is preapproved by the board. Banking costs incurred
for the Fedwire transaction charged to the person and to the state shall
be paid by the person originating the transaction.
(Added by Stats. 2000, Ch. 923, Sec. 16. Effective January 1, 2001.)
30193. (a) Any return, report, declaration, statement, or other document required
to be made under this part that is filed using electronic media shall
be filed and authenticated pursuant to any method or form the board may
(b) Notwithstanding any other law, any return declaration, statement,
or other document otherwise required to be signed that is filed by the
taxpayer using electronic media in a form as required by the board shall
be deemed to be a signed, valid original document, including upon reproduction
to paper form by the board.
(c) Electronic media includes, but is not limited to, computer modem,
magnetic media, optical disk, facsimile machine, or telephone.
(Added by Stats. 2002, Ch. 459, Sec. 13. Effective January 1, 2003.)