Does California Offer First Time Penalty Abatement for Taxpayers?

Learn about California's first time penalty abatement program and how taxpayers can request relief from Franchise Tax Board penalties.

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Yes, California does offer a first time penalty abatement to taxpayers under certain conditions. If you've received a penalty from the Franchise Tax Board (FTB) and you have a history of compliance, you can request to have the penalty abated. This is generally available to those who have filed and paid on time for the previous three tax years and have not been penalized in the same period. You'll need to contact the FTB directly to apply for this relief or inquire about your eligibility.

FAQs & Answers

  1. What is the first time penalty abatement policy in California? California's first time penalty abatement allows eligible taxpayers with a clean compliance history to request the removal of certain penalties assessed by the Franchise Tax Board.
  2. Who qualifies for penalty abatement from the California Franchise Tax Board? Taxpayers who have filed and paid on time for the previous three tax years and have no penalties during that period may qualify for first time penalty abatement.
  3. How do I apply for the first time penalty abatement in California? You must contact the California Franchise Tax Board directly to inquire about eligibility and submit a request for penalty abatement.