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 expert help, you can stop an FTB levy with help from an Orange County CPA, resolve your debt, and protect your future.

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)

If you're wondering what’s really happening behind the scenes, it’s important to understand how FTB bank levies work and how to stop them. Levies are often automated, and in many cases, your money is gone before you even know the FTB took action.

How Did This Happen?

Before levying your accounts, the FTB typically sends multiple notices:

1. Notice of Tax Due
2. Demand for Payment
3. Notice of Collection Action
4. 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

In urgent cases, we’ve helped clients pause collection through a hardship deferral—protecting their income while exploring permanent solutions.

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

If the debt is large or longstanding, we may recommend you settle your California tax debt to lift the levy using the FTB’s Offer in Compromise program, which lets qualified taxpayers resolve their debt for less.

Compare IRS and FTB Collection Powers

Many taxpayers mistakenly assume that IRS and FTB collections work the same way—but there are big differences. It's important to compare IRS and FTB collection powers so you can understand which agency is more aggressive and how to prioritize your resolution strategy.

For example:

• The FTB can levy without court approval.
• The IRS must send specific pre-levy notices and often allows more negotiation time.
• State tax debts can impact California driver’s license renewals, unlike federal tax debts.

A CPA can help you navigate both.

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

📣 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.