Franchise Tax Board Installment Agreement Request

If the FTB accepts the requirement of the instalment payment agreement, the FTB sends a notification to the taxable person confirming the monthly amount and due date of each monthly payment. However, if the taxpayer does not comply with the above conditions, the FTB reserves the right to terminate the instalment payment agreement. Before terminating a payment contract by instalments, the FTB sends a notification to the taxable person 30 days before the termination. The FTB`s communication shall state the reasons for the termination and communicate instructions on the rights of the taxable person. If you request a payment plan (instalment payment contract), it may take up to 90 days for your request to be processed. As a general rule, you have up to 3 to 5 years to pay your credit. If you owe more than 25,000 $US to the FTB, you should call the toll-free number and request accounts from FTB 3567. This form is also available online if you wish to complete it before your call. After completing the annual accounts, call the toll-free number and negotiate your own interim payment plan. An application fee of $34 will be added to your tax credit if you apply for a payment agreement in instalments. If your application is accepted, you will receive a notification with your monthly date and amount of default. If you do not make this first payment within 30 days, your instalment payment contract will be terminated and you will have to face subsequent recoveries by the FTB.

The FTB also has a unique function that is not available under IRS rate agreements. The function is called “Skip the month”. If for any reason you are unable to make your instalment payment under your agreement, you can call the FTB and inform them before the due date of your payment. The FTB allows you to skip a month without declaring your payment agreement in default. The number is (916) 845-0494. This article is an article accompanying my latest article titled Owe the IRS 50,000 or Less? Do you want a payment agreement? Try to do it yourself. In the IRS article, I wrote about the new “Fresh Start” initiative to enter into a instalment payment agreement with the IRS if the taxpayer owed $50,000 or less. . . .

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