If the California Franchise Tax Board determines you have a balance due, they can garnish your wages, file and record a lien against your property, seize your assets, and levy your bank accounts. If you owe taxes to the FTB, the following information will help you understand the agency’s collection process.
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The California Revenue and Taxation Code (R&TC) provides authority for the Franchise Tax Board to take involuntary collection actions when taxpayers are delinquent in paying their state income tax. You can prevent involuntary collection actions if you:
• Pay your tax liability in full.
• Enter into an installment agreement.
• File required tax returns and pay the balance due or provide proof that you have no filing requirement.
• Make an Offer in Compromise that they accept.
• Establish that a financial hardship prevents you from paying your liability, also known as Currently-Not-Collectible
If you do not pay your entire California income tax liability by the time it becomes due and payable, the unpaid amount is subject to a state tax lien. The California FTB may record a notice of state tax lien in the county recorder’s office of the county in which you live or own real property. They may also file a notice of state tax lien with the California Secretary of State. If the FTB records or files a notice of state tax lien, you can get it released by paying the total tax liability (including any penalties, accrued interest, and fees) for the tax years represented by the lien. The FTB records a certificate of release in the office of the county recorder. Here they recorded the notice and/or file the release with the California Secretary of State no later than 40 days after you pay the liability. If you pay by check, the 40-day period does not begin until your financial institution honors the check. Unfortunately, the FTB sometimes records or files a notice of state tax lien in error. If this happens to you, you or your tax representative must call or write to the FTB and explain the error. If the FTB agrees with you, they will send a notice to the applicable county recorder’s office and/or to the Secretary of State and to credit reporting companies stating that they recorded/filed the notice in error. Learn how we routinely protect our clients from State tax liens.
The California Franchise Tax Board has the right to the seize and sell real and personal property pursuant to a warrant, and issue orders to withhold (also known as levies) and withholding orders for taxes (wage garnishments). If the FTB takes your property and you believe their action is improper, you have a right to a hearing. To request a hearing, you or your tax representative must call or write them to explain why their action is improper. During the hearing, you should provide information that demonstrates the need to change or withdraw the levy or stop the sale of your property. You may file a claim for reimbursement of charges and fees caused by an erroneous levy, processing action, or collection action by the FTB. You must do so within 90 days of the erroneous action. Learn how we often get levies released or reduced within 24 hours.
Interest accrues on unpaid taxes from the original due date of the return until the date the California Franchise Tax Board receives full payment. It accrues on penalties from the effective date of the penalty until the date the FTB receives full payment. To find current and prior California interest rates, go to ftb.ca.gov and search for interest rates. Check IRS interest rates. Learn how we pursue the elimination of penalties and interest on every case.
If the California Franchise Tax Board rejects your request for an installment agreement, they will send you a notice stating the reason for the rejection. If you believe the rejection is improper, you or your tax representative can call or write the FTB to explain why. The FTB generally may not levy your property during the 30-day period after they reject an installment agreement and during a review of that rejection, if you request a review within 30 days of the rejection. Learn how we establish payment plans for our clients.
If you do not pay your entire income tax liability by the time it becomes due and payable, the unpaid amount could be satisfied by interception of funds due to you from the federal government, other states, or other California state agencies. If you do not believe you owe this debt, you or your tax representative must contact the California Franchise Tax Board within 30 days from when you first receive a Return Information Notice or Statement of Tax Due to prevent possible interception. Learn how we protect your rights and assets.
There is a time limit to request a refund from the California Franchise Tax Board. Generally, you can file a refund claim until the latter of four years from the due date of your tax return, or one year from the date of overpayment. In most cases, you may only request a refund when you have paid the full amount due. For claims filed on or after January 1, 2002, even if you have not yet paid the amount due in full, you can file an informal refund claim within the time frames indicated above. An informal claim will protect your right to file an appeal with the California State Board of Equalization or to file suit against the FTB in court until you have paid the total amount due. However, amounts paid more than seven years ago cannot be refunded. Check your refund status in the State of California.
If you do not file your tax return by the extended due date, the California Franchise Tax Board imposes a penalty of 25 percent of the amount due, after applying any payments and credits made on or before the original tax return due date. The FTB imposes the penalty from the original due date of the tax return. For a tax return that shows a balance due, the minimum late filing penalty is $135 or 100 percent of the tax due after applying timely payments and credits, whichever is less. Learn how we pursue the elimination of penalties and interest on every case.
The California Franchise Tax Board imposes a penalty if you do not pay the total amount due shown on your tax return by the original due date. The penalty is 5 percent of the unpaid tax (underpayment), plus 0.5 percent of the unpaid tax for each month or part of a month it remains unpaid (monthly). The maximum penalty is 25 percent of the unpaid tax. Learn how we pursue the elimination of penalties and interest on every case.
The California Franchise Tax Board imposes a penalty if you do not pay, pay late, or underpay an estimated tax installment. The FTB calculates the penalty on the unpaid amount from the due date of the estimated tax installment to the date they receive your payment or to the due date of the tax return, whichever is earlier. Learn how we pursue the elimination of penalties and interest on every case.
Beginning January 1, 2009, taxpayers became required to remit all tax payments electronically, regardless of the taxable year for which the payment applies. Once any estimated tax or extension payment exceeds $20,000, or their tax liability exceeds $80,000 for any taxable year beginning on or after January 1, 2009. Failure to comply with this requirement will result in a penalty of 1 percent of the amount paid, unless your failure to pay electronically was for reasonable cause and not willful neglect. Learn how we pursue the elimination of penalties and interest on every case.
The California Franchise Tax Board imposes a penalty if your financial institution does not honor a payment you make to the FTB by your check, money order, or electronic funds transfer. For a payment of $1,250 or more, the penalty is 2 percent of the payment amount. For a payment less than $1,250, the penalty is $25 or the payment amount, whichever is less. Learn how we pursue the elimination of penalties and interest on every case.
If the California Franchise Tax Board sends you a demand to file your income tax return or to provide them with information, and you do not comply, they impose a penalty of 25 percent of the tax on their assessment before applying any payments or credits. Therefore, you may owe penalties and interest even if your tax return shows that a refund is due. The demand to file penalty is in addition to the 25 percent late filing penalty stated above. Learn how we pursue the elimination of penalties and interest on every case.
– Enrolled Agents
– Licensed Tax Resolution Specialists
– Former IRS Collection Officers
Since we’ve handled thousands of tax relief cases in the past, we know how to get the best results for you. We will negotiate a deal that is fair and affordable for you while simultaneously preserving your taxpayer’s rights. As seasoned tax professionals that specialize in State and IRS Tax Relief matters, we know how the Franchise Tax Board collection system works and how to protect you and your assets.
Very good experience and glad I made the decision to use this company. Michael was professional and courteous in all of my dealings with him. My tax dilemma was quickly resolved and Michael even waived much of his normal fee. Where else have you heard of a business doing that? Without question, I would recommend Landmark Tax Group for anyone seeking a fair resolution for a tax problem.
Michael was fantastic! He understood my case very quickly, got right to work and was super prompt with communications. His professionalism and his friendly demeanor immediately put me at ease. I whole heartedly recommend contacting them if you’re in need of advice and assistance.
I received great advice in how to deal with the FTB, i don’t review often, but when someone is honest and legitimate, they do deserve a review. My questions were answered, and if i didn’t quite understand, Micheal was more than willing to give me follow-up answers to better help me. I highly recommend Landmark Tax Group, just for the mere fact that they treat you as a human being, Not a cash cow.
I had some returns from previous years to complete after receiving a hefty bill from the California Franchise Tax Board. Michael was prompt in answering my questions and very helpful and reassuring. We had several back and forth communications and this was all done for free since they do not prepare tax returns. He gave me some contacts and advice and now I’m on my way to getting my situation resolved. I’m very thankful for his advice and guidance.
While Michael’s scope of practice meant that we ultimately could not work directly to resolve the issue I was having, he was very prompt, professional, generous and kind in taking time out of his schedule to consult with me, refer me to his network of colleagues- not just once, but a second time even months after. Some professionals are just after services and compensations but Michael strikes me as someone who genuinely cares about your situation and wants to see to it that it gets resolved. These other reviews speak to that as well. You never want to be in a situation where you need to be looking up tax help, but God forbid you ever are, Michael is the person you want in your corner!
Michael and Landmark Tax Group were simply awesome. I like so many others had a year’s old tax issue arise with California FTB. I no longer live there which compounded the stress of the situation. The state had seized monies and filed a lien. After a call to an online tax relief place and some sketchy phone calls I was so happy to find Michael and immediately felt in good hands… at a time of considerable panic.
Fast forward to today and with his help I am totally debt free. He saved me $23,000
I highly recommend Michael and Landmark Tax Group
Michael Raanan is an angel! Michael went above and beyond for me. He was very knowledgeable, professional and very thorough! He is easy to talk to and amazing at what he does. I have a feeling that everyone at landmark tax group shares this way of professionalism! I highly recommend coming here for any and all of your tax help. They will help you and you will be more than pleased with them. 🙂
After calling the other highly advertised tax assistant agency’s and being disappointed with how they responded to my tax matter, I feel fortunate to have found out about the Landmark Tax Group. Michael was very understanding of my situation, and I felt very comfortable dealing with him. He was very knowledgeable and professional in handling our tax issue in a timely manner. I would highly recommend The Landmark Tax Group to anyone who needs assistance in dealing with the IRS.
Wow, just wow. I called Michael today to ask about some major tax issues I had with a defunct corporation I’d started years ago. Michael talked to me for about half an hour, walking me through options and generally helping me understand my options.
Because of him, I’m going to rest nicely tonight for the first time in weeks. It was great to hear that he used to work in IRS collections for 8 years too… which made me feel a lot more secure in his answer.
In all, I’m completely stunned by the level of service he gave to a random stranger who called in and wasn’t going to turn into any revenue for him. I have to imagine that his level of service for actual customers is unreal.
Fast, dependable, reliable, full transparency. Michael Raanan of Landmark Tax Group allayed my fears spending the rest of my senior years paying my tax debt. As a result of his extensive knowledge of the tax code, the right questions to ask, and his dedication to my case, I had information, resolution and a plan of action within 24 hours, start to finish. Amazing! I highly recommend Landmark Tax Group!
We were very pleased with the expert assistance we received from Michael Raanan at Landmark Tax Group. In a matter of months we had a resolution to our IRS tax issue. He was very knowledgeable, professional, explained things in easy to understand terminology & was very easy to discuss our tax issues with. We called around to other tax groups & just felt the most comfortable speaking & working with Michael. We are happy to recommend him & his firm.
Michael Raanan represents the highest level of professionalism, integrity, decency, and true concern for his clients. His advice every step of the way was right on target. The end result was a savings of $13,000 on my taxes.
I have already referred him to the other members of my financial team and have complete confidence in referring any clients to him. He is a shining star in his field.
Oh, did I mention how reasonable his fees are? Exceptional considering the amount of attention he provides.