California Installment Agreement (Form 3567)

If you're unable to pay your California income tax balance in full, you may be able to request a payment plan using the Installment Agreement Request Form 3567. An installment agreement allows you to make monthly payments over time instead of paying your balance all at once, subject to Franchise Tax Board (FTB) approval. 

What Is Form 3567?

Form 3567 is used to request a California installment agreement with the Franchise Tax Board (FTB). If approved, you can make fixed monthly payments until your tax liability is paid in full. Interest and applicable penalties continue to accrue until the balance is fully paid. 

Eligibility Requirements

You may qualify for an installment agreement if:

• Your total tax liability does not exceed $25,000.
• You can pay the balance within 60 months or less.
• You have filed all required California income tax returns. 
• You do not currently have an active installment agreement. 

Terms and Conditions

By entering into an installment agreement, you agree to:

• Make all monthly payments on time. 
• Maintain sufficient funds in your bank account if paying through automatic withdrawals. 
• File future California tax returns by their due dates. 
• Pay future tax liabilities on time. 
• Pay the installment agreement setup fee, which is currently $34 and added to your balance.

The FTB may review your request, ask for additional financial information, or file a tax lien as a condition of approval. 

Electronic Funds Transfer (EFT)

Form 3567 allows you to authorize automatic monthly payments directly from your checking or savings account.

When completing the EFT section:

• Enter your bank routing and account numbers. 
• Select a payment date that is no later than the 28th day of the month. 
• Sign the EFT authorization section.

Failure to maintain sufficient funds may result in penalties, collection fees, and possible termination of your installment agreement. 

Program Pathway

• State
• Edit California Return (Click the 3 dots) 
• Miscellaneous Forms 
• Installment Agreement, Form 3567

Important Information

• The FTB recommends making the largest monthly payment you can afford because interest and penalties continue to accrue until the balance is paid in full. 
• The FTB may apply any California tax refunds you are owed toward your outstanding balance. This does not replace your required monthly payment. 
• Federal tax refunds and certain state payments may also be intercepted to satisfy your tax debt. 
• Do not submit Form 3567 if you already have an installment agreement or an active wage garnishment. Contact the FTB directly for assistance in those situations.