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 respond smartly to protect themselves.
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. You may also be eligible for
penalty abatement if the notice includes added fees.If correct, be prepared to pay the difference or request relief.
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
As an Orange County CPA firm, we regularly help clients in Anaheim, Santa Ana, Irvine, and surrounding cities deal with these notices before they escalate.
What to Do If You Receive an FTB Notice
- 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 of Proposed Assessment mean?
It means the FTB believes you owe additional tax. You must respond within 60 days or it becomes final.
What happens if I ignore an FTB notice?
You could face penalties, liens, wage garnishments, or bank levies. Notices escalate fast in California.
Can I resolve an FTB notice without paying everything right away?
Yes. You may qualify for an installment agreement, penalty abatement, or Offer in Compromise.
Do I need a CPA to respond to the FTB?
While not required, a CPA can help you interpret the notice, avoid mistakes, and negotiate better outcomes.
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