California Business Portal

Interest Abatement—Do I qualify?

The law requires the Franchise Tax Board (FTB) to charge interest. If your reported tax is not paid by the original due date, or if FTB assessed additional tax that becomes due and payable, FTB must charge interest on the balance due, compounded daily. FTB also charges interest on penalties. 

If FTB cancels interest, they call it "abatement." FTB cannot abate interest except where the law provides an exception. 

There are no reasonable cause exceptions for abatement of interest.

Circumstances for Interest Abatement
Go to and search for interest abatement. 

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