Electronic Funds Transfer (EFT) – Filing, Deadlines, Penalties & Interest

Filing Your Tax Returns and Prepayments

If you have a California Seller’s Permit, you must still file your tax returns on time even though you are paying taxes by EFT. Electronic filing (efiling) is the BOE’s method for filing sales and use tax returns and making your EFT payment in one transaction. Nearly all sales and use tax accounts are eligible to efile. Prepayment forms are not required to be filed. However, you are still required to make a payment through EFT.

If you have a Special Taxes and Fees account, you must still file your tax or fee returns and prepayments on time even though you are paying by EFT. Currently, International Fuel Tax Agreement (IFTA) and motor fuels are the only accounts eligible to efile. Additional special taxes and fees programs will be eligible in the near future.

Accounts Ineligible or Exempt from eFiling

If you are ineligible or have received a temporary exemption from efiling, you will continue to receive returns in the mail. You must continue to file your tax return on time and your EFT payment must be initiated separately. To learn how to make a separate payment, see ACH Debit or ACH Credit payment options.

Due Dates and Time

Tax due dates are based on your reporting basis, (e.g. quarterly, quarterly prepayment, monthly or yearly). Special Taxes and Fees accounts need to refer to their tax or fee return for the due date that applies to their reporting basis. For an EFT payment to be timely it must be initiated on or before the tax or fee due date and funds must settle into the BOE’s bank account on or before the banking day following the due date.

If you use ACH debit payment method and initiate your payment on the tax or fee due date, you must allow enough time to complete your transaction by 3:00 p.m. Pacific time and select the next banking day as your debit date. Otherwise, your payment will not be initiated until the next banking day and will be late.

If you use ACH Credit payment method, your EFT payment must settle into the BOE’s bank account by the first banking day following your tax or fee due date.

Note: If you report taxes on a Special Reporting basis, you must use the due dates assigned to you by BOE.

Weekends and Holidays
When the tax or fee due date falls on a weekend or holiday (National or State of California), it will move to the next business day.

Penalty and Interest Charges

Failure To Pay by EFT
If you are a mandatory EFT participant and you do not pay through EFT but use another means (e.g. cash, check or credit card), you will be assessed a penalty, based on the amount paid by another means.

  • Sales and Use Tax accounts are imposed a penalty of ten percent for tax returns and six percent for prepayments.
  • Special Taxes and Fees programs impose a ten percent penalty on taxes or fees and prepayment penalties are based on laws governing your specific tax program.

Failure to Pay Timely

  • Sales and Use Tax accounts impose a ten percent penalty for late payment on returns and six percent for prepayments.
  • Special Taxes and Fees programs impose a ten percent penalty on taxes or fees and prepayment penalties are based on laws governing your specific tax program.

Failure To File a Tax Return/Prepayment Timely

  • Sales and Use Tax accounts are imposed a ten percent penalty for filing a late return, even if your EFT payment was made timely.
  • Special Taxes and Fees programs are imposed a ten percent penalty on the taxes or fees and prepayment penalties are based on laws governing your specific tax program.

Interest Charges:
EFT payments will be subject to the same interest provisions currently established by the BOE for unpaid and late tax or fee payments.