Assessing the mandatory e-pay penalty.

• Position: FTBNEWS

This penalty is equal to 1 percent of the amount paid unless the failure to pay electronically was for reasonable cause and not willful neglect (CT & RC Sec. 19011.5). The penalty applies to personal income taxpayers whose tax liability is greater than $80,000, or who make an estimated tax or extension payment that exceeds $20,000 for taxable years beginning on or after Jan. 1, 2009.

Once either of these conditions is met, all future payments regardless of type...