California Franchise Tax Board
Levy and Wage Garnishments, Installment Agreements, Tax Liens
If you owe the Franchise Tax Board back taxes, you may have already experienced a levy, wage garnishment, seizure, or suffered from the filing of a state tax lien. If you didn’t file, the Franchise Tax Board may have “filed” a substitute return for you and filed tax liens. The assessments may be wrong. But, action is required to fix the problem. The Franchise Tax Board can be very difficult to deal with. Your immediate objective is to get relief from the levy or wage garnishment. Your long-term plan may involve an Offer in Compromise, abatement of erroneous assessments, installment agreement, innocent spouse relief, or other tax resolution. As an experienced tax attorney, I work with taxpayers and the Franchise Tax Board to arrive at solutions so that you can get your life back. The California Franchise Tax Board, historically can be very aggressive.
Release of Wage Garnishment / Bank Levy / Installment Agreement
In order to obtain a Release of a Bank Levy or Wage Garnishment, to set up an installment agreement, or show undue hardship, the California Franchise Tax Board requires a financial statement (Form 3561). Proper and accurate completion of this form is very important.
The State of California may file a tax lien against you, to “protect” the best interest of the State. The filing can have negative consequences for you. The filing of a lien may delay or prevent you from certain transactions such a buying or selling property. The lien is a public record. For individuals, the Notice of State Tax Lien is filed with the county recorder’s office. For a business entity, the Notice of State Tax Lien is filed with the California Secretary of State (See Government Code Sections 7171 and 7220). The Lien is effective for 10 years or more – Once a lien is recorded, the lien continues in effect for 10 years unless extended for an additional 10 years (California Government Code Section 7172(b)). State Tax Liens attach to property. Liens attach to any California real or personal property you own or have rights to. The Lien Negatively impacts on your credit. It may prohibit your ability to purchase, sell, refinance, or transfer real property, along with securing loans for other assets or debts. Even if you don’t live in California, the Tax Lien can adversely impact you. The Tax Lien may affect your ability to gain and retain employment. The Franchise Tax Board does not report lien information directly to the credit bureau agencies. Rather, the Notice of State Tax Lien and Release of Lien become public information after being recorded at a county recorder’s office or filed with the California Secretary of State. The credit bureau agencies get the information from either the county recorder or California Secretary of State and report it on your credit bureau report.
Individual Change of Address
If you move (change your address), you should notify the California Franchise Tax Board. Many times, taxpayers move out of the State of California, and find out years later that State Tax Liens appear on their credit report. This is because the Franchise Tax Board sends notices to your last known address. Since you didn’t advise the FTB of your move, the Franchise Tax Board issued legal actions concerning you which were sent to your old address. The individual Change of Address Form 3533 is here.
You may see citations to the California Revenue and Taxation code, or other California code sections. California Law References are maintained by the California Legislative Counsel and are linked here.
Statute of Limitations
California statute of limitations for refunds and assessments are here:
Free Consultation for Tax Problems with California Franchise Tax Board
Call to discuss your Franchise Tax problem today. Reading on the internet about the California Franchise Tax Board is one thing, but when you need help NOW, you need someone experienced in trench warfare with the seizure arm of the California Franchise Tax Board.