Received a Notice from the FTB? Here’s What It Means
Introduction: Got a Letter from the FTB? Don’t Panic — But Don’t Ignore It
If you've recently opened your mailbox and found a letter from the California Franchise Tax Board (FTB), you're not alone — and you're definitely not powerless.
FTB notices are serious, but they don’t always mean immediate enforcement. In fact, many can be resolved if you take action quickly.
In this post, we’ll break down the most common FTB notices, what they really mean, and how Orange County taxpayers can get help responding to FTB notices and resolving tax debt before collections escalate.
Why You’re Receiving a Notice
The FTB sends notices for a variety of reasons, including:
- Unfiled returns
- Underreported income
- Unpaid tax balances
- Intent to garnish wages or levy your bank account
- Demands to respond or provide documentation
Even if you believe you’re in compliance, you should never ignore an FTB notice. They tend to escalate quickly — especially compared to the IRS.
Common Types of FTB Notices and What They Mean
1. Notice of Tax Return Change
FTB has made an adjustment to your filed return — usually from a mismatch in reported income (e.g., W-2, 1099).
What to do:
Review the notice. If the change is incorrect, respond with documentation. If penalties were added and you had a valid reason for the error, you can
request penalty abatement for California tax debt through reasonable cause relief. If the changes are correct, you may still have relief options available.
2. Demand for Tax Return
You didn’t file a return for a given year, and the FTB is asking you to file.
What to do:
File immediately or face
substitute return assessments, penalties, and potential liens.
3. Notice of Proposed Assessment (NPA)
The FTB is proposing additional taxes, usually due to unreported income or a missed filing.
What to do:
You have 60 days to protest or the assessment becomes final. Do not ignore this.
4. Notice of State Tax Lien
The FTB has recorded a lien against your property due to an unpaid balance. If a lien has been filed, this guide walks through how to remove an FTB tax lien and restore your credit.
What to do:
This will affect your credit and ability to borrow. A CPA can help resolve or remove the lien.
5. Final Notice Before Levy
This is your last warning before the FTB seizes wages, bank accounts, or assets. If you've received this type of letter, here’s exactly what to do if you receive a levy from the FTB.
What to do:
Take immediate action. This is the most urgent notice and should not be ignored.
Why Orange County Taxpayers Should Act Quickly
Unlike the IRS, the FTB is known for:
- Fast automated collections
- Fewer notices before action
- Issuing liens or garnishments with little additional warning
Understanding how both agencies work helps you respond strategically. We help you compare FTB and IRS enforcement tactics so you know what to expect and how to prepare.
What to Do If You Receive an FTB Notice
If you’ve fallen behind, don’t wait for aggressive collection actions. Owe back taxes to the FTB? Here’s what to do next:
- Read it carefully – Don’t assume it’s a mistake.
- Determine the type of notice – Filing, balance, assessment, or enforcement?
- Gather supporting documents – Income, tax returns, letters from employers, etc.
- Don’t call them alone – Having a licensed CPA respond makes a difference.
- Respond quickly – Especially if the notice includes deadlines.
Even if you owe a balance, there are several California tax relief programs that may help you resolve it without facing enforcement.
How Boulanger CPA Helps
At Boulanger CPA and Consulting PC, we:
- Review FTB notices and explain them in plain English
- Communicate directly with the FTB on your behalf
- File missing returns
- Stop collections, garnishments, and levies
- Pursue penalty abatement or tax relief solutions
Don’t Let One Letter Become a Bigger Problem
The longer you wait, the harder it gets. If you’ve received a notice from the FTB, let’s take care of it the right way — fast and legally.
Call us now at 657-218-5700 or schedule online or visit our website at www.orangecounty.cpa
Frequently Asked Questions
What does a notice from the FTB mean?
It usually means the California Franchise Tax Board believes you owe back taxes, have unfiled returns, or are under review for a previous filing.
What’s the difference between an FTB notice and an IRS notice?
FTB notices are issued by California’s tax agency and apply to state income tax. IRS notices relate to federal taxes. They are separate and may have different consequences.
Can the FTB garnish wages or levy my bank account?
Yes. If you ignore the notice, the FTB can take enforcement actions including wage garnishments, bank levies, and liens without going to court.
How do I respond to an FTB notice?
You should review the notice, pull your FTB account history, and speak with a CPA. Responses depend on the type of notice and your tax situation.
Can I stop enforcement after receiving an FTB notice?
Yes. You may qualify for a hardship deferral, installment agreement, or Offer in Compromise depending on your financials.
Should I call the FTB myself?
It’s better to have a CPA handle communication with the FTB to avoid mistakes, missed deadlines, or agreeing to unfavorable terms.
📣 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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