When your California Franchise Tax Board (FTB) payment fails, the consequences can include late penalties, interest, and even suspension of your LLC or corporation. This blog explains the most common FTB payment rejection errors, what they mean, and how to fix them quickly for the 2025 tax year.
Why FTB Payments Get Rejected
FTB payment rejections often happen due to:
- Incorrect bank account information
- Wrong entity identification number
- Mismatched names on the account vs FTB records
- Attempting payment for wrong tax year or form
- Insufficient funds or blocked ACH transfers
Understanding the error code provided by FTB helps you resolve it without delay.
Common FTB Payment Error Codes (2025)
| Error Code | Meaning | How to Fix It |
|---|---|---|
| EF001 | Invalid account number or routing number | Double-check your bank details and re-submit the payment |
| EF002 | Mismatch between entity name and Entity ID | Ensure your legal name matches FTB records |
| EF003 | Payment type/form mismatch (e.g., wrong form) | Verify if you’re paying under the right form (e.g., 3522) |
| EF004 | Tax year not open for payment | Ensure you selected the correct tax year (2025) |
| EF005 | Insufficient funds or bank rejection | Contact your bank and confirm sufficient balance |
| EF007 | Account type not allowed (e.g., savings instead of checking) | Use a verified checking account |
What to Do If Your Payment Gets Rejected
Step-by-Step Guide:
- Check your rejection email
The FTB or payment processor (like ACI) will include an error code and description. - Correct the issue
Refer to the table above to identify the cause and how to resolve it. - Resubmit your payment
Return to the Web Pay portal and submit a corrected payment before the due date. - Monitor your bank account
Ensure the funds are actually withdrawn and the confirmation is received. - Save your confirmation number
Proof of payment is critical in case of audit or disputes.
Penalties for Failed or Late Payments
If your payment is not corrected before the deadline:
- Minimum $18/month/member penalty for LLCs
- Late payment interest will begin accruing
- FTB Notice of Collection may be issued
- Administrative suspension may occur for entities in repeated default
Pay attention to deadlines even if you think payment was submitted, only confirmed payments count.
When to Call the FTB
Call the FTB Business Line at 800-852-5711 if:
- You did not receive a rejection email or notice
- You’re unsure which tax year or form caused the issue
- You are facing penalties for a payment you believe was valid
- You need help reactivating your suspended LLC or Corp
Always have your Entity ID, FTB Account Number, and payment details ready when calling.
Conclusion
FTB payment errors can cost time and money, but they’re often simple to fix. Review your bank details, confirm you’re using the right tax year and form, and act fast. Rejected payments are not counted as filed, so double-check all confirmation numbers and stay alert to error notices.
Call to Action
If your FTB payment was rejected or your account is under collection, schedule a meeting with Anshul Goyal, CPA, EA, FCA to resolve the issue professionally and avoid further penalties.
Disclaimer:
This blog is for informational purposes only and should not be considered legal, accounting, or tax advice. Every tax situation is unique, and readers are advised to consult a qualified professional before making decisions.
Top 5 High-Searched FAQs
1. How will I know if my FTB payment failed?
You’ll receive an error message or email notification from FTB or your payment processor.
2. Can I resubmit a failed payment?
Yes. Fix the issue and use the Web Pay portal to submit again.
3. Does a failed payment mean I missed the deadline?
Yes, if not corrected by the due date. Penalties may apply.
4. What if I submitted payment to the wrong tax year?
You must contact FTB to reallocate or re-submit payment correctly.
5. Will I be penalized for insufficient funds?
Yes. You may face penalties and interest if the issue isn’t resolved promptly.
About Our CPA
Anshul Goyal, CPA, EA, FCA assists clients in resolving Franchise Tax Board payment failures, correcting rejected filings, and restoring good standing for suspended LLCs and corporations. He represents clients before both the IRS and FTB.