Registered Warrant (IOU) Frequently Asked Questions

  1. What can I pay with my Registered Warrant (IOU)?
  2. Will the BOE Accept "Third-Party" Registered Warrants?
  3. How do I pay with my Registered Warrant?
  4. Can I pay with my State-issued registered warrant that is more than the amount owed to the BOE?
  5. Can I eFile my Sales and Use Tax return or prepayment and pay with my State-issued registered warrant?
  6. Can I pay with my State-issued registered warrant if I am required to pay my taxes and fees by EFT without penalty?
  7. Can I mail my IFTA Quarterly Fuel Use Tax Return and pay with my California State-issued registered warrant?
  8. Can I eFile my IFTA Quarterly Fuel Use Tax Return and pay with my California State-issued registered warrant?
  9. Will I receive the interest accrued on registered warrants that are not yet redeemable?
  10. Will I receive the interest accrued on registered warrants that are redeemable when remitted to the BOE?
  11. Will I be charged penalty or interest for paying with my State-issued registered warrant?
  12. Where can I get more information?

  1. What can I pay with my Registered Warrant (IOU)?

    The BOE will accept the State-issued registered warrants as payment of sales and use taxes and other taxes and fees owed to the BOE from those businesses who do not receive regular payments from the state until funds are available.

  2. Will the BOE Accept "Third-Party" Registered Warrants?

    No. The BOE will only accept State-issued registered warrants payable to our tax and fee payers as payment towards taxes, fees and other amounts due to the BOE.

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  3. How do I pay with my Registered Warrant?

    Endorse the back of the registered warrant with the phrase "Pay to the order of the State Board of Equalization" and your signature. Mail the registered warrant with the return, form, billing notice or other document reflecting what you wish to pay.

  4. Can I pay with my State-issued registered warrant that is more than the amount owed to the BOE?

    Yes. Your account will be credited for the full amount due. A refund will be issued for any overpayment after the BOE is able to redeem the State-issued registered warrant. To determine the redemption date, look for the following sentence on the face of your warrant: "This REGISTERED WARRANT will be honored on or after 10/02/2009 (or the stated date)". Please allow 4-6 weeks after the redemption date to receive your refund of amounts of $50,000 or less. Refunds over $50,000 may take up to 120 days. All refunds will include any applicable statutory credit interest. However, the statutory credit interest rate through June 30, 2010 is 0%.

    If you would prefer to have the additional amount applied to future BOE returns or prepayments rather than receive a refund, please include a letter with your State-issued registered warrant identifying how you would like the overpayment applied. BOE staff will confirm the availability of the overpayment and provide you with a letter that may be enclosed with your future return or payment. Please allow 10 business days for BOE staff to process and acknowledge your request.

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  5. Can I eFile my Sales and Use Tax return or prepayment and pay with my State-issued registered warrant?

    Yes, you may pay with your State-issued registered warrant. If you are not required to pay by Electronic Fund Transfer (EFT), choose the "Paper Check" option in the eFile program, print out the voucher provided. Endorse the back of the registered warrant with the phrase "Pay to the order of the State Board of Equalization" and your signature. If additional amounts are due please include them in your remittance or you will be subject to penalty and interest charges.

    If you are required to pay by EFT and the registered warrant is equal to or exceeds your tax liability, choose the "Return Only" option to file your return. If reporting a prepayment period, reduce the amount you are paying to zero. Print the confirmation page and endorse the back of the registered warrant with the phrase "Pay to the order of the State Board of Equalization" and your signature.

    If you are required to pay by EFT and the registered warrant is less than your tax liability, the additional amount due must be remitted by EFT or included in your eFile transaction and paid by E-Check (ACH debit) to avoid penalty and interest charges. Follow your normal reporting process and adjust the EFT payment to the amount not covered by the warrant. Print the confirmation page and endorse the back of the registered warrant with the phrase "Pay to the order of the State Board of Equalization" and your signature.

    Mail the confirmation page and the registered warrant to:

    Board of Equalization
    P.O. Box 942879
    Sacramento, CA 94279-3535
  6. Can I pay with my State-issued registered warrant if I am required to pay my taxes and fees by EFT without penalty?

    Yes. You will not be assessed penalty on the amount of the State-Issued registered warrant. Any additional amount due must be paid by EFT to avoid penalty and interest charges.

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  7. Can I mail my IFTA Quarterly Fuel Use Tax Return and pay with my California State-issued registered warrant?

    Yes. You will not be assessed penalty on the amount of the State-Issued registered warrant. Any additional amount due must be paid to avoid penalty.

    Mail the IFTA Quarterly Fuel Use Tax Return and the registered warrant to:

    Motor Carrier Section
    Board of Equalization
    P.O. Box 942879 MIC: 34
    Sacramento, CA 94279-0034
  8. Can I eFile my IFTA Quarterly Fuel Use Tax Return and pay with my California State-issued registered warrant?

    Yes. You will not be assessed penalty on the amount of the State-Issued registered warrant. Any additional amount due must be paid to avoid penalty.

    Mail the payment voucher and the registered warrant to:

    Motor Carrier Section
    Board of Equalization
    P.O. Box 942879 MIC: 34
    Sacramento, CA 94279-0034

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  9. Will I receive the interest accrued on registered warrants that are not yet redeemable?

    No. The BOE will accept registered warrants that are not yet redeemable for full face value towards taxes, fees and other amounts due to the BOE. However, if you pay your liability with a warrant prior to its redemption date, your account will be credited for full face value registered warrants with an effective date of the registered warrant is received (postmark date if mailed). This will stop accrual of further interest and penalties on your tax and fee liabilities.

    In order to get interest on your registered warrant, you must hold the warrant until it is redeemable (its redemption date). Contact your financial institution for information about its policy on paying interest.

  10. Will I receive the interest accrued on registered warrants that are redeemable when remitted to the BOE?

    Yes. The BOE will accept redeemable registered warrants (warrants received after the redemption date shown on the warrant) and credit your account for the full face value plus accrued interest towards taxes, fees and other amounts due to the BOE. However, you should be aware that any past due liabilities will continue to accrue penalty and interest until the registered warrant is received by BOE.

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  11. Will I be charged penalty or interest for paying with my State-issued registered warrant?

    No. Your account will be credited for full face value of the registered warrants that are not yet redeemable effective the day the registered warrant is received (postmark date if mailed). This will stop accrual of further interest and penalties.

  12. Where can I get more information?

    FAQs and other information regarding registered warrants are available on the State Controller's website. You can also call the State Controller's toll-free registered warrants assistance number at 866-267-4255.

    Additional information about redeeming registered warrants is available on the State Treasurer's website. You can also call the Treasurer's toll-free registered warrants assistance number at 888-864-2762.

    Information on paying your corporate and personal income taxes owed with registered warrants is available on the Franchise Tax Board’s website.

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