What is the procedure to request a penalty waiver from the FTB for filing or paying my state taxes late?

You can request a penalty waiver from the Franchise Tax Board (FTB) by submitting a written request with supporting documents that establish reasonable cause for the delay, or by asking for a one-time abatement if you qualify. Here is the procedure to request a penalty waiver: Step 1: Determine Your Basis for the Request First, determine if you are requesting a waiver based on "reasonable cause" or the "one-time penalty abatement" program. Reasonable cause applies if circumstances beyond your control prevented you from filing or paying on time, such as a serious illness, death in the family, or a natural disaster. The one-time abatement is available if you have a history of good tax compliance. Step 2: Pay the Original Tax Amount The FTB is more likely to approve a penalty waiver if you have already paid the full underlying tax amount due. If you cannot pay the full amount, get into a formal installment agreement with the FTB. Interest will continue to accrue on any unpaid tax balance. Step 3: Gather Supporting Documentation Collect all documents that support your claim. For a reasonable cause request, this could include hospital records, a death certificate, insurance claims, or official declarations of a disaster. For a one-time abatement, you do not need specific documents, as the FTB will review your account history for compliance. Step 4: Submit Your Request For a reasonable cause claim, complete and mail Form FTB 2917, "Reasonable Cause – Individual and Fiduciary Claim for Refund," or write a detailed letter explaining your situation. For a one-time abatement, you can make the request orally by calling the FTB at (800) 852-5711, or you can submit a written request. Be clear, concise, and explain how the circumstances directly prevented your compliance. Important details and nuances: The FTB's one-time abatement (per R&TC 19132.5) generally requires that you have filed all required returns, paid your tax liability (or are in a payment plan), and have not had a penalty abated in the prior five years. "Reasonable cause" is a higher standard and requires you to show you exercised ordinary business care and prudence but were still unable to comply. The FTB cannot waive interest charges. Warnings and limitations: A penalty waiver is not guaranteed. The FTB evaluates each request on a case-by-case basis. If you have already paid the penalty, you must file your claim for refund within the state's statute of limitations, which is generally four years from the original due date of the return or one year from the date you paid the tax, whichever is later. This is general information and does not constitute legal advice. For complex situations, consult with a qualified California attorney.