Behind on California Taxes? How to Handle FTB Problems Before It’s Too Late
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.
Frequently Asked Questions
What happens if I fall behind on California state taxes?
If you owe back taxes to the Franchise Tax Board (FTB), you may face penalties, interest, wage garnishments, bank levies, and tax liens. The longer you wait, the more aggressive their collection efforts can become.
Can I set up a payment plan with the FTB?
Yes. The FTB offers installment agreements for individuals and businesses who can’t pay in full. You’ll need to stay current on future filings and make consistent monthly payments to stay in compliance.
Can I settle my California tax debt for less than I owe?
Possibly. The FTB has a limited Offer in Compromise (OIC) program for individuals and businesses that can prove they are financially unable to pay. It is most often approved when the business is closed and assets are minimal.
Does falling behind on state taxes affect my credit?
Yes. If the FTB files a tax lien, it becomes a public record and may show up on background checks or credit-related reports, especially in loan underwriting or licensing applications.
Should I hire a CPA to help with California tax debt?
Absolutely. A CPA can review your situation, stop collection actions, negotiate with the FTB, and help you resolve the debt through payment plans, settlement options, or penalty abatement.
📣 About the Author
Marc Boulanger, CPA is the founder of Boulanger CPA and Consulting PC, a boutique tax resolution firm based in Orange County, California and trusted by high-income individuals and business owners across Southern California.
He is the author of Defend What’s Yours: A California Taxpayer’s Guide to Beating the IRS and FTB at Their Own Game, available now on Amazon. The book offers a step-by-step plan for resolving IRS and FTB tax debt without losing your business, your home, or your peace of mind.
With over a decade of experience resolving high-stakes IRS and State tax matters, Marc brings strategic insight to complex cases involving wage garnishments, bank levies, unfiled returns, and six-figure tax debts. He is known for helping clients reduce or eliminate tax liabilities through expertly negotiated settlements and compliance plans.
Marc is a Certified Public Accountant licensed in California and Oklahoma and holds the designation of Certified Tax Representation Consultant. He is a member of the American Society of Tax Problem Solvers (ASTPS) — the national organization founded by the educators and practitioners who have trained thousands of CPAs, EAs, and tax attorneys in IRS representation strategy.
Every case is handled with discretion, proven methodology, and direct CPA-led representation — not call center scripts.
📍 Learn more at www.orangecounty.cpa or call (657) 218-5700.
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