Behind on California Taxes? How to Handle FTB Problems Before It’s Too Late

Marc Boulanger • March 30, 2025

A man is sitting at a desk with a lot of books on it.

When most people think about tax problems, they picture the IRS. But here in California, the Franchise Tax Board (FTB) can be just as aggressive—sometimes even more so.

If you’ve received a notice from the FTB, had money taken from your paycheck, or realized you're behind on your California state taxes, you’re not alone. And more importantly, you're not without options.

At Boulanger CPA and Consulting PC, we help Orange County taxpayers resolve their FTB issues before they spiral out of control.

What Is the FTB and Why Are They Coming After You?

The California Franchise Tax Board is responsible for collecting state income taxes from individuals and businesses. They also enforce filing compliance and can take legal action to collect unpaid taxes—often faster than the IRS.

Common triggers for FTB enforcement include:

Unfiled state income tax returns
Underreported income
Estimated assessments based on 1099s or third-party reports
Missed tax payments
Business owners with unpaid California franchise taxes

What Happens If You Don’t Pay California State Taxes?

If you don’t pay your California state taxes, the Franchise Tax Board (FTB) may take the following actions:

Wage Garnishment – The FTB can take up to 25% of your paycheck without a court order.
Bank Account Levy – Funds may be seized directly from your bank account.
Tax Lien – A lien may be recorded against your home, vehicle, or business assets.
Intercepted Refunds – Your California and federal tax refunds may be applied to your debt.
Penalties and Interest – Balances grow quickly due to aggressive penalty and interest charges.

The FTB is one of the most aggressive state tax agencies in the country—acting quickly and without much warning. If you’ve received a notice, now is the time to act.

FTB vs. IRS: What’s the Difference?

While both agencies enforce tax laws, the FTB often moves faster and gives you less flexibility to negotiate.

The IRS may allow you to propose payment plans or settle with an Offer in Compromise.
The FTB typically offers stricter programs and doesn’t hesitate to use enforcement tools early in the process.

This means working with someone who understands both systems is crucial if you have federal and state tax debt.

What You Can Do If You Owe the FTB

The good news? There are options—and we can help you understand which is best for your situation. Some of the most common solutions include:

1. Filing Back Tax Returns

Unfiled returns are a big red flag for the FTB. We’ll help you get compliant and potentially reduce inflated balances from estimated assessments.

2. Setting Up an FTB Installment Agreement

We can negotiate a payment plan that fits your budget and avoids further enforcement.

3. Stopping Wage Garnishments and Bank Levies

If you’re already under collection, we can often get garnishments lifted while we work on a resolution strategy.

4. Evaluating a California Offer in Compromise

For those in financial hardship, a settlement may be possible—but the FTB has strict standards. We’ll determine if it’s a viable path and prepare the strongest possible application.

Why Work with a Local CPA Firm?

At Boulanger CPA and Consulting PC, we’ve helped individuals and businesses across Orange County navigate complex state tax problems with confidence. Here’s what sets us apart:

Local, face-to-face service—we’re not a call center or out-of-state sales operation.
Licensed CPA support with deep experience in both FTB and IRS resolution.
Start-to-finish handling of your case—we deal with the FTB directly so you don’t have to.

We primarily meet with clients virtually via Zoom for convenience, but in-person appointments at our Orange County office are available by request.

Serving Clients Across Orange County, California

At Boulanger CPA and Consulting PC, we proudly help individuals and business owners throughout Orange County resolve their state and federal tax problems. Whether you’re located in:

Anaheim
Santa Ana
Irvine
Huntington Beach
Orange
Fullerton
Mission Viejo
Garden Grove
Costa Mesa
or anywhere else in the OC area—

—we're here to provide personalized, professional help with your California Franchise Tax Board (FTB) issues.

If you're behind on your California taxes, don’t wait for the FTB to take the next step.

Call us today at 657-218-5700 or schedule a free consultation to get started with a local CPA who knows how to fight for you.

FAQs About California FTB Tax Problems

What is the California Franchise Tax Board (FTB)?
The California Franchise Tax Board (FTB) is the state agency responsible for enforcing California income tax laws. It collects personal and business income taxes and can take aggressive action—like wage garnishments or bank levies—if taxes go unpaid.
What happens if I don’t pay my California state taxes?
If you don’t pay your California state taxes, the FTB can garnish up to 25% of your wages, levy your bank accounts, place a lien on your assets, intercept state and federal tax refunds, and charge substantial penalties and interest.
How do I stop a wage garnishment from the FTB?
To stop an FTB wage garnishment, you must act quickly. Review the notice, contact the FTB, get into compliance with any missing returns, and negotiate a payment plan. A licensed CPA can help you request a garnishment release and prevent future collection actions.
Can I settle my FTB tax debt for less than I owe?
Yes, through the California Offer in Compromise (OIC) program. However, it has strict qualification rules and is best pursued with professional help. A CPA can evaluate your eligibility and build a strong case for approval.
Is the FTB more aggressive than the IRS?
In many cases, yes. The FTB often moves faster than the IRS when it comes to garnishments and levies. It also offers fewer options for negotiation. That’s why it’s important to address FTB tax issues immediately with professional guidance.