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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.
Tax
Liens
The
State of California may file a tax liens 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.
California
Law
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:
Refund
Assessments
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.
Put
over 30 years of negotiation and tax controversy resolution
experience on your team. Call
now. The consultation
is free.
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