Prepayment Reminder Email Error Corrected

On Tuesday, August 21, 2018, CDTFA sent out routine emails to approximately 72,000 taxpayers reminding them that prepayment due dates were approaching. According to our vendor, a system process that sends out prepayment reminder emails unfortunately failed and prior system testing of this process did not identify the issue we ended up experiencing overnight. These routine emails included the taxpayer's limited access code and account number that enables a taxpayer to log on to the CDTFA system and view the business name and submit a prepayment or return, but does not allow further accessing of taxpayer account information. Unfortunately, due to the system error there were eight taxpayers whose limited access code and account number was misdirected to an unrelated taxpayer. CDTFA corrected this error at approximately 9:30 a.m. on Wednesday, August 22, 2018, and disabled the impacted limited access codes. CDTFA is working with the eight taxpayers whose limited access codes and account number were erroneously sent out and other taxpayers affected by this system error. We developed the limited access code so that a taxpayer could work within the system in a secure environment. It provides a capability that allows taxpayers an easier way to push information to us, like filing a return or making a payment, without giving full access to the taxpayer's account. In other words, the limited access code function provides the capability to make a payment or file a tax return without logging into the system adding an extra layer of security. This function provides an expedited way for taxpayers to file and pay their taxes.

In this case only 32 out of 72,000 people initiated a payment in the wrong place and they were identified and redirected to the correct procedure. More than 1,600 people received the same email 10 times and approximately 43 people may have received the email more than 10 times. We are confident that we have identified the full scope of the problem as we know it now and are sorry for any confusion. A communication to these taxpayers is being sent out advising them of the error. We are grateful for the patience and understanding of all of our customers.

Note: This news release may discuss complex tax laws and concepts. It may not address every situation, and is not considered written advice that may be relied on, pursuant to California Code of Regulations, title 18, sections 1705 and 4902. Changes in tax law or regulations may have occurred since the time this news release was written. If there is a conflict between the text of this news release and the law, decisions will be based upon the law and not this news release. For specific help, please contact the CDTFA at 1-800-400-7115.