3816: Electronic Funds Transfer Election to Discontinue or Waiver Request (Revision 2020-01)
California · FTB · Used for tax years 2024, 2025, 2026
California Form FTB 3816 lets an entity elect to discontinue electronic funds transfer (EFT) payments or request a waiver of EFT requirements. It records the entity’s information, the reason for the request, and a representative officer’s certification.
Who files this form
Use FTB 3816 to request a waiver from electronic funds transfer (EFT) requirements or to elect to stop paying by EFT.
Entities must pay by EFT if they make an estimated tax or extension payment exceeding $20,000, or their total tax liability exceeds $80,000, for any income year beginning on or after January 1, 1995.
- Waiver request: Any taxpayer required to pay by EFT may request a waiver. The form says waivers are granted when amounts paid above the thresholds are not representative of the taxpayer’s tax liability.
- Election to discontinue: The election checkbox requires that the entity made no estimated tax or extension payment exceeding $20,000 during the current or previous income year, and that its total tax liability reported for the previous income year did not exceed $80,000.
What you'll need
Have the following ready to complete the form:
- Entity name, entity number, and mailing address.
- Information about estimated tax or extension payments for the current and previous income years, and total tax liability reported for the previous income year, if electing to discontinue EFT.
- An explanation on page 2 if requesting a waiver.
- A schedule listing the names and entity numbers of all other unitary group members that are California taxpayers, if the entity belongs to a unitary group.
- The representative officer’s name, title, signature, phone number, and date.
How to file
- Complete the entity information.
- Select one reason: election to discontinue EFT or request for a waiver.
- For a waiver request, explain the reason on page 2. Attach the required member schedule if the entity belongs to a unitary group.
- Complete and sign the signature authorization.
The form’s Where to Send section directs you to mail the completed form to:
EFT UNIT MS F-284
FRANCHISE TAX BOARD
PO BOX 1468
SACRAMENTO CA 95812-1468
Or fax it to 916.855.5556.
Continue making all payments by EFT until you are notified that your request has been granted.
Common mistakes
- Stopping EFT payments before approval: You must continue paying by EFT until you receive notice that your request has been granted.
- Paying another way while EFT is required: The form warns that payments made by other means result in a penalty of 10 percent of the amount paid.
- Leaving out the unitary group schedule: If the entity is a unitary group member, attach the names and entity numbers of all other members that are California taxpayers.
- Leaving out the waiver explanation: If requesting a waiver, use page 2 to explain the request.
Questions people ask
Can I stop paying by EFT as soon as I submit this form?
No. You must keep making all payments by EFT until you are notified that your request has been granted.
What is the reason for requesting a waiver?
The form provides for a waiver when amounts paid above the EFT thresholds are not representative of the entity’s tax liability. Explain your request on page 2.
Can I fax the form instead of mailing it?
Yes. The form lists fax number 916.855.5556 as an alternative to mailing.
What must a unitary group member attach?
Attach a schedule showing the names and entity numbers of all other group members that are California taxpayers.