State tax help · California
California tax debt help: dealing with the FTB
California's Franchise Tax Board (FTB) collects state income tax, and it has strong collection tools of its own. Here's what it can do, and how to get a California tax balance under control.
AgencyFranchise Tax Board (FTB)
CollectsCalifornia income tax
Can it garnish wages?Yes
Payment plans?Yes
1How the FTB collects
- Wage garnishment: the FTB can order your employer to withhold part of each paycheck, called an Earnings Withholding Order for Taxes.
- Bank levies: the FTB can order your bank to send money from your account.
- State tax liens: recorded against your property, which can affect selling or refinancing.
- Refund and payment offsets: the FTB can take state refunds and some other payments.
- Public list and licenses: California publishes a list of its largest delinquent taxpayers, and people on it can have driver's and professional licenses suspended.
California generally has a longer collection period than the IRS, so state tax debt doesn't fade away on its own.
2Your options with the FTB
- Installment agreement: monthly payments. Smaller balances can often be set up online.
- Offer in compromise: the FTB has its own program for settling for less when you can't pay in full.
- Penalty relief: the FTB can waive some penalties for reasonable cause, and California has a first-time abatement option for some individual penalties.
- Hardship: collection may be paused if paying would leave you unable to meet basic expenses.
3What to do now
- Check your FTB account online with MyFTB to see balances and notices.
- File any missing California returns. The FTB may have estimated your tax if you didn't file.
- Set up a resolution before wage or bank levies start, or as fast as possible if they have.
- Plan for the IRS too, if you owe federal tax for the same years.
Common questions
Does an IRS payment plan stop the FTB?
No. The FTB is a separate agency, so you need a separate resolution with California.
Can someone represent me with the FTB?
Yes. With a California power of attorney, an authorized representative such as an Enrolled Agent can deal with the FTB for you.
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Written by Jonathan Samuel, EA. This page is general information, not advice for your specific situation. California rules change; check ftb.ca.gov for current details.