Can You Get a Payment Plan After an FTB Levy
Introduction: It’s Not Too Late — You Can Still Get a Payment Plan
If the California Franchise Tax Board (FTB) has already levied your bank account or garnished your wages, you may think your chance to work out a payment plan is gone.
It’s not.
The truth is, you can still get a payment plan after an FTB levy — but time and strategy matter.
In this guide, we explain what an FTB levy means, whether you're eligible for an Installment Agreement afterward, and how Orange County taxpayers can stop further enforcement.
🧾 What Is an FTB Levy?
An FTB levy is a legal action where the state:
- Seizes funds from your bank account
- Garnishes your wages through your employer
- Intercepts state-issued refunds or payments
Unlike the IRS, the FTB doesn’t require a court order to issue a levy.
👉 What the FTB Can and Can’t Legally Seize
🚨 What Triggers a Levy?
Levy action typically follows:
- Multiple ignored notices
- A Demand for Payment
- A Final Notice Before Levy
- Failure to respond to a Notice of Proposed Assessment
- Default on a previous payment arrangement
✅ Can You Get a Payment Plan After an FTB Levy?
Yes — but you must act quickly and strategically.
The FTB allows taxpayers to request an Installment Agreement, even after levy action has begun. In many cases:
- The levy can be released or paused once a payment plan is in place
- Future levies can be avoided
- You can regain financial control without paying the full balance upfront
👉 FTB Offer in Compromise vs Installment Agreement – Which Is Better?
🔁 What’s the Difference Between a Levy and a Lien?
| Levy | Lien |
|---|---|
| Seizes money directly | Creates a legal claim on property |
| Happens without court order | Filed publicly with the county recorder |
| Can be reversed or paused | Must be released after debt is paid |
Both are serious — but levies affect your cash flow immediately.
🧠 When a Payment Plan Makes Sense
You should consider an Installment Agreement if:
- You don’t qualify for an Offer in Compromise
- You have steady income
- You can afford monthly payments
- You want to stop levies without full payoff
✅ How to Apply for an FTB Payment Plan After a Levy
✅ Step 1: Get a Full Transcript
Review your:
- Outstanding balances
- Levy dates
- Past payment history
- Open notices
✅ Step 2: Submit the Installment Agreement Request
You can:
- Apply online through the FTB portal (for balances under $25,000)
- Submit Form FTB 3567 (for larger balances or complex situations)
Include:
- Monthly income and expense details
- A proposed monthly payment
- A signed agreement to file and pay on time going forward
✅ Step 3: Request a Levy Release (If Needed)
You or your CPA can request the FTB to release an existing levy once a payment plan is approved — especially if:
- The levy caused financial hardship
- You’ve submitted a good-faith request for resolution
👉 How to Stop an FTB Bank Levy Before It Starts
✅ Step 4: Stay Compliant
The FTB will cancel your Installment Agreement if you:
- Miss a payment
- Fail to file future returns
- Add new unpaid balances
🔒 Pros and Cons of Getting a Payment Plan After Levy
| Pros | Cons |
|---|---|
| Stops future levies | Must pay full balance + interest |
| Prevents wage garnishment | Missed payments = immediate enforcement |
| Buys time to resolve debt | No guarantee past levies are reversed |
| Easier than Offer in Compromise | Doesn’t reduce total amount owed |
🧭 How Boulanger CPA Helps Orange County Taxpayers
We help individuals and businesses across Irvine, Santa Ana, Anaheim, and Fullerton:
- Stop active FTB levies
- File Installment Agreement requests
- Request levy releases
- Negotiate monthly payment amounts
- Maintain compliance to avoid default
📞 Call
657-218-5700
🌐
www.orangecounty.cpa
Frequently Asked Questions
Can I get a payment plan if the FTB already took money from my account?
Yes. You can apply for an Installment Agreement and request a levy release once the plan is accepted.
How fast does the FTB approve payment plans?
Some are approved online within days. Larger balances take 2–4 weeks with financial review.
Will the FTB return money already levied?
Sometimes, but not always. A CPA can request a refund if the levy caused hardship.
Can I do this without a CPA?
You can, but a CPA improves your chance of success — and protects you from missteps that could trigger more levies.
📣 About the Author
Marc Boulanger, CPA is the founder of Boulanger CPA and Consulting PC, based in Orange County, California.
With over a decade of experience helping individuals and businesses resolve serious IRS and State tax issues, Marc specializes in tax resolution strategies including Offers in Compromise, wage garnishment relief, and back tax compliance.
He is licensed as a Certified Public Accountant in both California and Oklahoma, and has a proven track record of helping clients settle complex tax debts and regain financial stability.
📍 Learn more at www.orangecounty.cpa or call (657) 218-5700.
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