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18575: 2024 CA Direct Debit Estimated Business Payments Incorrectly Applied to Tax Year 2023


California

Why was my taxpayer's 2024 CA estimated business payment voucher returned or refunded?


On June 12, 2024, it was brought to our attention that 2024 CA estimated business payments paid via direct debit using Drake Tax 2023 incorrectly used an accounting period of 2023. The accounting period should have been 2024. This error affected direct debit estimated business payments made using the following CA forms prior to June 17, 2024:

  • 100-ES (all quarters)
  • 3522
  • 3536 (LLC)
  • 3893 (PTE) (both vouchers)

As a result of this error, electronic payments may have been allocated to the incorrect tax year or refunded. The CA Franchise Tax Board (FTB) is working to correct our error and apply estimated payments to the correct tax year where possible. As the FTB continues to review and resolve accounts, taxpayers may receive a notice from the FTB regarding an erroneous refund or balance due. Taxpayers should follow the instructions on the notice.

In the meantime, the FTB recommends that affected taxpayers monitor their MyFTB account to ensure that estimated payments are applied to the correct tax year.

We apologize for the inconvenience caused.


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