What to Do If You Receive a Levy from the FTB (Orange County Taxpayer Guide)
Introduction: Don’t Ignore That FTB Levy Notice
If you’ve received a levy notice from the California Franchise Tax Board (FTB), it means the state is preparing to seize your assets—usually your bank account or wages. FTB levies are serious and can wipe out funds without much warning.
But here’s the truth:
You still have options.
With the right strategy—and the right help—you can stop the levy, resolve your tax debt, and avoid long-term damage to your finances.
This guide explains exactly what to do if the FTB sends you a levy notice and how Orange County residents can regain control of the situation.
What Is an FTB Levy?
A levy is a legal seizure of your property to satisfy a tax debt. The FTB can issue a levy to:
- Your bank account
- Your wages or salary
- Contract payments
- Rental income
- Third parties who owe you money (such as business customers)
FTB levies are automated, and in many cases, the money is taken before you realize it—especially if you ignored earlier notices.
How Did This Happen?
Before levying your accounts, the FTB typically sends multiple notices:
- Notice of Tax Due
- Demand for Payment
- Notice of Collection Action
- Final Notice Before Levy
If you failed to respond, file, or pay, the FTB assumes you’re unwilling to resolve the debt and moves forward with enforcement.
What to Do Immediately After Receiving a Levy
1. Do Not Ignore the Levy
Ignoring it can lead to multiple levies, wage garnishments, and additional enforcement actions.
2. Contact Your Bank
If it’s a bank levy, funds may be held temporarily before being released to the FTB. You may have a short window to dispute or resolve it.
3. Contact the FTB Collections Unit
Call (800) 689-4776 and explain your situation. You may be able to request a temporary hold on collections if you’re actively pursuing resolution.
4. Get a Tax Professional Involved
A CPA experienced in FTB collections can:
- Request a release of levy
- Negotiate installment agreements
- File for hardship deferral or Offer in Compromise
- Ensure your rights are protected
Orange County residents can schedule a virtual or in-office meeting with Boulanger CPA to take immediate action.
Can You Get an FTB Levy Released?
Yes—if you act fast.
Common ways to release a levy:
- Entering into a payment plan
- Proving financial hardship
- Showing that the levy creates an undue burden (rent, food, medicine)
- Providing proof the levy is in error
The FTB is more likely to release the levy if you demonstrate good faith in resolving the debt.
How to Avoid Future Levies
- File all required tax returns
- Respond to FTB notices promptly
- Set up a payment plan if you can’t pay in full
- Request hardship deferral if you’re in crisis
- Consider an Offer in Compromise if you qualify
Learn more in our related post: How to Qualify for an FTB Hardship Deferral
Case Example: Bank Levy in Orange County
Robert, a contractor in Anaheim, had $11,000 levied from his business account after ignoring FTB notices. We:
- Immediately contacted the FTB
- Submitted a hardship request with supporting financials
- Got the levy released
- Negotiated a $200/month installment agreement
How Boulanger CPA Helps Taxpayers Under Levy
At Boulanger CPA and Consulting PC, we’ve helped Californians—especially in Orange County, including Irvine, Anaheim, and Santa Ana—deal with urgent levy situations. We provide:
- Emergency case triage
- FTB negotiations
- Levy release requests
- Long-term tax resolution plans
Contact Us Today
Website:
www.orangecounty.cpa
Phone:
657-218-5700
Email:
marc@boulangercpa.com
Frequently Asked Questions
What is an FTB levy?
An FTB levy is a legal action by the California Franchise Tax Board to collect unpaid state taxes. It allows the FTB to seize funds directly from your bank account or garnish your wages without a court order.
How do I know if the FTB has issued a levy?
You’ll usually receive a notice of intent to levy or collection notice from the FTB before the levy is issued. However, in some cases, the levy may be issued without much warning if prior notices were ignored.
Can I get an FTB levy released?
Yes. A levy can be released if you pay the balance in full, enter into an installment agreement, qualify for a hardship deferral, or successfully request penalty relief. A CPA can help initiate and negotiate this process quickly.
Will the FTB notify my employer or bank before levying?
No. Once the levy is issued, your employer or bank will be notified directly. You may find out only after the funds are frozen or wages are garnished. Time is critical when responding to a levy action.
Can a CPA stop an FTB levy?
Yes. A CPA can contact the FTB on your behalf, request a levy release, negotiate payment options, and help prevent future enforcement actions. Fast action is key to protecting your income and accounts.
📣 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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